Carrington Mortgage Services has emerged as a leading choice for borrowers with lower credit scores. This review delves into why Carrington is a preferred lender for many looking to secure a mortgage despite past credit challenges. As noted, affiliate links may be present, offering compensation to us. However, our evaluations are independently formed based on a thorough assessment of Carrington's offerings compared to other top mortgage lenders. Our analysis identifies Carrington as a standout, especially for those grappling with poor credit.
With notably low minimum credit score requirements and a willingness to collaborate with clients having recent negative credit events, Carrington is well-suited for such borrowers. For instance, the lender provides FHA or VA mortgages to applicants with scores as low as 500. While this is a major advantage, it's important to consider that Carrington’s rates and fees tend to be on the higher side.
Carrington supports a range of loan options, including FHA, VA, USDA, and non-QM loans, with credit score requirements starting at 550. However, mortgage alternatives like home equity loans, HELOCs, reverse mortgages, or construction loans are not offered. The lender is operational across the United States except for North Dakota and Massachusetts. By extending credit even to those with past bankruptcies or other credit issues, Carrington ensures access to financial opportunities for a broader audience.
Carrington's offerings are varied: conforming, FHA, USDA, VA, and non-QM loans. Conforming loans are accessible with a credit score of 620 and permit down payments as low as 3%. For government-backed loans, Carrington impressively permits FHA loan seekers with scores down to 500, provided a 10% down payment is made when scores fall below 580.
USDA loans from Carrington require a minimum credit score of 550 and are targeted at those in eligible rural and suburban areas, while non-QM loans serve the self-employed or those whose credit situations may not align with conventional loan standards. Carrington's non-QM loans include the Flexible Advantage Loan, accommodating credit scores as low as 550, and allowing recent negative credit events.
The Flexible Advantage Plus Loan accepts scores from 620 and requires past credit events to be at least three years old, all while offering loans up to $2 million. Carrington Prime Advantage Loans provide for higher loan amounts up to $3.5 million for those with better credit scores of 660 or above.
Interest rates with Carrington trend slightly higher than average, which may alter when engaging with non-QM loans due to their inherently higher risk. Based on recent data, the average origination charge aligns above typical market levels, reinforcing Carrington's niche yet higher-cost positioning. Despite these cost considerations, Carrington remains a favorable choice for individuals who have faced hurdles in obtaining a mortgage through other lenders due to credit score concerns.
Customer feedback underscores Carrington's adept and approachable service, though some borrowers have pointed out certain servicing issues related to loan transfers. It's pivotal to engage with Carrington for prequalification to gauge potential loan options and to navigate the approval process thoroughly.
In a comparison with Fairway Independent Mortgage Corporation, known for its affordability yet lesser flexibility for low credit scores, Carrington remains a valuable option for those needing a mortgage despite a tarnished credit history. Guild Mortgage offers broad mortgage varieties catering to first-time buyers, similar to Carrington, enhancing opportunities through non-conventional credit histories.
Carrington's diligence amidst a recent controversy involving fines for CARES Act violations emphasizes its commitment to compliance and customer service, as evidenced by its high satisfaction ratings across platforms like Zillow. Established since 2007, Carrington steadfastly operates as a direct lender, bringing its own suite of mortgages to the market, not as a broker, thus developing direct relationships with its clientele.
Through our systematic review process, we ascertain Carrington as a robust option, especially suited for those needing flexibility due to past credit missteps.
