Carrington Mortgage Services review
finder.com’s rating: 3.1 / 5.0
Numerous options for those with poor credit, but watch for monthly fees.
Carrington Mortgage Services is a nationwide lender offering a suite of government and conventional loan options. It advertises unique loan options for those with poor credit, but its online customer feedback is largely negative.
|Loan products offered||Conventional, Refinance, Jumbo, FHA, VA, USDA|
|Minimum credit score||Carrington Flexible Advantage loans: 500 minimum credit score|
|State availability||Not available in: MA, ND|
What types of loans does Carrington Mortgage Services offer?
Carrington offers conventional, jumbo and government-backed loans, including streamlined options for purchases and refinances.
- Conventional loans. To qualify for a conventional loan with Carrington, you’ll need a personal credit score of at least 620. Fixed-rate 15- and 30-year terms are available alongside 5/1, 7/1 and 10/1 adjustable-rate terms. Carrington’s Home Possible loans offer down payments as low as 3%.
- FHA loans. These home loans are insured by the government and feature more lenient lending criteria, and down payments as low as 3.5%. Some borrowers can even be approved with a credit score as low as 500, but you’ll need a higher down payment.
- VA loans. Servicemembers, veterans and their families may qualify for a VA loan guaranteed by the US Department of Veterans Affairs. Apply for 15- and 30-year fixed-rate loans with a minimum credit score of 500. No private mortgage insurance is required and low and no down payment options are available.
- USDA loans. To qualify for a loan backed by the US Department of Agriculture, you must live in or relocate to a qualifying rural area. Applicants can qualify for a loan with a minimum credit score of 500, and 0% down payment options are available.
- Jumbo loans. Carrington jumbo loans start at $548,250 and cap at $2.5 million. Credit scores as low as 500 may qualify for both fixed- and adjustable-rate loan options.
- Refinancing. Carrington offers conventional, FHA, USDA, VA and jumbo loan refinancing with cash out options for borrowers with credit scores as low as 500.
Carrington Flexible Advantage loans
This loan program was designed for those who may not qualify for conventional loans or government-backed programs due to bankruptcy, foreclosure, late payment history, low credit scores or high debt-to-income ratios.
Both fixed- and adjustable-rate loans of up to $3 million are available for borrowers with credit scores as low as 500. Single-family homes, townhouses and condos are all eligible for funding. Applicants with stronger credit scores of at least 620 may be eligible for no private mortgage insurance.
Carrington doesn’t offer any information on its website about its fees. When we called for more information, the service rep we spoke to mentioned its fees vary by both state and loan program and couldn’t provide any further insight.
Typically, lenders charge origination fees of 2% to 5% of the total loan cost. During the home loan process, expect to encounter the following closing costs:
- Credit report
- Document preparation
- Home inspection
- Private mortgage insurance
- State taxes
- Title charges
To qualify for a conventional loan with Carrington, you’ll need a minimum personal credit score of 620 and a down payment of at least 20% to avoid private mortgage insurance (PMI).
Borrowers seeking an FHA, VA, USDA or jumbo loans can qualify with a minimum credit score of 500. Down payments as low as 3.5% are accepted for FHA loans, while VA and USDA loans offer 0% down payment options.
Before applying, have the following handy:
- Social Security number
- Driver’s license, state ID or US passport
- Bank statements for the previous two months
- W2s for the previous year
- Tax returns for the previous two years
- Pay stubs for the previous two months
- Profit and loss statements, if self-employed
- List of your assets including savings, real estate, car titles, retirement accounts and other investment records
- List of your debts including student loans, credit cards and car loans
How to get a loan with Carrington
Here’s how to start the loan application process with Carrington:
- Visiting Carrington’s home page and click Buying a Home or Refinance a Home under the Home Loans tab.
- To the right of your preferred loan program, click Get started.
- Enter your estimated purchase price and estimated down payment, then click Next.
- Enter your contact information and click Finish.
- A loan officer will reach out to assist with the preapproval process.
Carrington Mortgage reviews and complaints
Carrington is an accredited business with the Better Business Bureau (BBB), from which it receives an A+ rating. But Carrington’s BBB customer reviews are less favorable. It received a customer rating 2 out of 5 stars based on 205 reviews.
Many customers complained of rate increases and ongoing service fees. But amid the criticism, other Carrington borrowers said they were satisfied with the service they received, citing courteous and attentive loan officers.
Pros and cons of Carrington Mortgage Services
- Broad availability. Carrington is licensed to lend in all states but North Dakota and Massachusetts.
- Lenient lending criteria. Borrowers with bankruptcies or foreclosures on their credit report may still qualify for a loan with Carrington.
- Online application. The entire home loan application process can be completed on Carrington’s website.
- Poor customer feedback. Carrington’s BBB average customer rating is a disappointing 2 out of 5 stars.
- No in-person support. Carrington is a direct lender and doesn’t have any physical branches.
- Payment fees. While fees vary by state, expect a $5 to $20 fee for making your mortgage payment on a monthly basis.
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What is Carrington Mortgage Services?
Carrington Mortgage Services is a direct lender operating in all states except for Massachusetts and North Dakota. The company was founded in 2007, right before the 2008 mortgage crisis.
Unlike many lenders, it both originates and services its loans. Carrington Mortgage Services is a part of a larger family of companies — including retail and wholesale lending services — in addition to the Carrington Charitable Foundation.
Frequently asked questions
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Shannon Terrell is a writer for Finder who studied communications and English literature at the University of Toronto. On any given day, you can find her researching everything from equine financing and business loans to student debt refinancing and how to start a trust. She loves hot coffee, the smell of fresh books and discovering new ways to save her pennies.
Carrington Mortgage Services may offer a unique solution for hopeful homeowners who struggle to qualify for traditional loan products. But Carrington isn’t forthcoming about its rates or fees and its online reputation isn’t favorable.
Compare your loan options with other mortgage providers before you make a home loan decision.