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Carrington mortgage review
Last updated:
This lender has multiple options for poor-credit borrowers, but reports of bad service abound.
finder.com’s rating: 3.1 / 5.0
★★★★★
- Choose this lender if you have bad credit history.
- Choose another lender if you prefer a wide network of branches.
- A good option for poor-credit borrowers.
Details
| Loan products offered | Conventional, Refinance, Jumbo, FHA, VA, USDA |
|---|---|
| Minimum credit score | Conventional: 620 FHA: 500 VA: 500 USDA: 500 Carrington Flexible Advantage loans: 550 |
| Minimum down payment | 3% |
| State availability | Not available in: MA, ND |
| NMLS # | 2600 |
Carrington requirements
To find out if you’re eligible for a Carrington home loan, visit the company’s website. Basic eligibility for a mortgage loan includes:
- Residency in any state except MA or ND
- Two years’ history of employment
- A FICO credit score of 500 or higher
Documentation
Before applying, have the following handy:
- Social Security number
- Driver’s license, state ID or US passport
- Bank statements for the previous two months
- W-2s for the previous year
- Tax returns for the previous two years
- Pay stubs for the previous two months
- List of assets, including savings, real estate, car titles, retirement accounts and other investment records
- List of debts, including student loans, credit cards and car loans
- Profit and loss (P&L) statements if self-employed
Costs and fees
Carrington doesn’t offer any information on its website about its fees. When we called for more information, the service rep we spoke with mentioned that fees vary by both state and loan program and couldn’t provide any further insight.
Typically, lenders charge an origination fee anywhere from .5% to 1% of your loan’s total value. Additionally, you can expect to pay approximately 2% to 5% of your loan amount in closing costs, which may include:
- Appraisal
- Credit report
- Document preparation
- Home inspection
- Private mortgage insurance
- State taxes
- Title charges
- Taxes
How to apply for a mortgage with Carrington
To get started:
- Go to Carrington’s website and select Purchase or Refinance.
- Answer “Are you an Existing Customer?” with Yes or No.
- Enter the purchase price of the property, zip code, down payment amount, your annual income, credit score and military status.
- View your available loans and rates based on the information you provided. Be aware that your actual rates will depend on verification of your information by an underwriter.
- Choose a loan product by selecting Get Loan.
- Enter your contact information.
- Wait to be contacted by a loan officer about the next steps.
What types of mortgages can I get through Carrington Mortgage Services?
- Conventional
- FHA
- VA
- USDA
- Jumbo
Other mortgage products offered by Carrington
Carrington also offers these specialized types of mortgages. Note that some of these home loan products may only be available through a mortgage broker.
- Carrington Flexible Advantage. For borrowers with a minimum credit score of 550 who may not qualify for other loans due to a recent bankruptcy, foreclosure or bad credit. This loan accepts alternative documentation, like bank statements, and requires no PMI.
- Carrington Prime Advantage. A home loan program offering a maximum LTV of 90% and expanded DTI up to 50%. For borrowers with credit scores of 660 and up.
- Investor Advantage Program. This loan program requires no employment or income documentation. Instead, you can use property cash flow to qualify.
- Lender-paid mortgage insurance products. A 30-year fixed, maximum 95% LTV loan product for purchases and refinances for borrowers with a minimum 620 credit score.
- HomeReady. This Fannie Mae loan program requires 3% down and a 620 credit score and can be used for 1- to 4-unit family dwellings.
- Home Possible. This Freddie Mac loan program requires 3% down and permits flexible sources of funds for down payments. Borrowers must have a 620 credit score to qualify.
- FHA Streamline Refinance. This refinancing program for FHA loans requires no minimum FICO score and no income verification.
- USDA Streamline Assist. This refinancing program for USDA loans requires no minimum FICO score if no late payments in the past 12 months and no appraisals.
- VA IRRRL. This refinancing program for VA loans requires no minimum FICO in most cases and no income documentation or appraisals.
- Mortgage refinancing. A type of loan that can help reduce your interest rate, lower your monthly mortgage payment and get rid of PMI.
How Carrington’s mortgage products compare to other lenders
Compared to other lenders, Carrington offers a higher-than-average number of mortgage and refinancing options for people with bad credit, self-employed borrowers and investors. For borrowers with a recent bankruptcy or foreclosure, the Carrington Flexible Advantage loan — which considers alternative credit data instead of tax returns — can help make it easier for you to qualify even if other lenders have turned you down.
Compare mortgage lenders and brokers
Compare top brands by home loan type, state availability and credit score. Select See rates to provide the lender with basic property and financial details for personalized rates.Carrington reviews and complaints
As of April 2021, Carrington has mixed reviews. The company has 1.47 out of 5 customer rating with the Better Business Bureau (BBB) from 215 customers, a 2 out of 5 rating on WalletHub from 73 customers and a 5 out of 5 rating on Zillow from 888 customers. While Carrington has been accredited with the BBB since 2007 and has an A+ business rating, customer reviews on the site are overwhelmingly negative, with 431 complaints filed in the past three years.
Positive customer reviews mention great service from loan officers and low interest rates. But negative reviews mention mishandled payments, erroneous late fees, forbearance issues and general incompetence from customer service reps. Many customers’ servicing problems started after mortgages they obtained from other lenders were sold to Carrington.
Pros and cons of Carrington
Pros
- Lenient lending criteria. Borrowers with bankruptcies or foreclosures on their credit report may still qualify for a home loan with Carrington.
- Alternative credit data. Carrington is willing to consider alternative credit data when underwriting loans, including using your bank statements and property cash flow.
- View rates online. Carrington’s website offers a prequalification that allows you to view your available rates with no credit check required. Note that rates are subject to underwriting approval and verification of your information.
Cons
- Customer complaints. Many customers online have complained about terrible service and a lack of concern and care from company representatives.
- Consumer lawsuits. In 2020, Carrington was hit with a class-action lawsuit from borrowers in Florida claiming the company was illegally charging fees for mortgage payments made online and over the phone.
- Limited retail locations. Carrington currently only has six physical branches in six states.
What is Carrington?
Founded in 2007 and headquartered in Anaheim, California, Carrington Mortgage Services is a non-bank direct lender offering loans in all states except for Massachusetts and North Dakota. Unlike many lenders, it both originates and services its home loans.
Carrington Mortgage Services is a part of a larger family of companies, including retail and wholesale lending services. The company is affiliated with the Carrington Charitable Foundation, which has helped 139 local organizations and donated $12.9 million to date.
Review by
Shannon Terrell
shannon.terrell@finder.comShannon Terrell is a senior writer for Finder who has written over 400 personal finance guides. With a focus on investments and personal finance, she breaks down jargon-laden topics to help others make informed financial decisions. She studied communications and English literature at the University of Toronto.
Expert review
Carrington Mortgage Services offers a range of solutions for poor-credit borrowers who may not otherwise qualify for a traditional loan. And unlike many lenders, Carrington allows you to quickly view your available home loan options and rates online without requiring a hard credit check.
But the company doesn’t have the best reputation, and many customers have complained about poor service that led to financial difficulties. If you want a loan with Carrington, we recommend getting prequalified online and speaking with a loan officer to make sure the company is a good fit. And always compare lenders to help find the right loan for your situation.