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finder.com’s rating: 3.1 / 5.0
★★★★★
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 |
NMLS # | 2600 |
Carrington offers conventional, jumbo and government-backed loans, including streamlined options for purchases and refinances.
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:
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:
Here’s how to start the loan application process with Carrington:
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.
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.
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
We analyze top home loan providers and rate them one to five stars based on factors that are most important to you. These factors include: rates and fees, product selection and borrower experience.
Read the full methodology of how we rate home loan providers.
Review by
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.