Carrington Mortgage Services 2021 Review – Low Credit Options

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Carrington Mortgage Services is a mortgage services provider founded in 2007 and headquartered in Anaheim, California. A subsidiary of Carrington Holding Company LLC, the lender offers basic mortgage and refinancing options to borrowers nationwide.

Consumers can start the mortgage application process online, by phone, or at six branches located in Arizona, California, Connecticut, Florida, Indiana, and Maryland. The company is licensed to issue mortgages in Washington, DC and in all states except Massachusetts and North Dakota.

Carrington offers a number of mortgages for borrowers with poor credit, but the biggest downside we’ve noticed about this lender is a history of customer complaints.

Here’s what to know about the Carrington mortgage before applying for a home loan.

Pros and Cons of Carrington Mortgage Services

Benefits

  • Offers all major mortgage programs and three loans for consumers with credit or income documentation issues

  • Licensed in most states

  • Consider applicants with low credit scores

The inconvenients

  • Has accumulated numerous customer complaints over the years

  • Does not advertise interest rates or lender fees on its website

  • You will need to speak to a loan officer to receive pre-approval or complete a mortgage application

  • Has only six physical locations

Carrington Mortgage Services: Types of Loans and Products

Carrington Mortgage offers a basic list of conventional and government guaranteed loans, giant mortgages, and refinance loans. Lender says loan closing takes around 30-45 days from start to finish.

Here’s what’s on Carrington’s lineup right now:

The Lender’s Great Offers are three mortgages designed for borrowers who may have difficulty finding loans elsewhere.

  • The Carrington Flexible Advantage The loan is designed for borrowers with a credit score as low as 550 and self-employed borrowers who need help documenting their income. Recent credit events such as bankruptcy, short sale, foreclosure, or a history of late payments are acceptable, and there are no mortgage insurance requirements.
  • The Carrington Plus Flexible Advantage The loan is designed for borrowers with recently improved credit scores but a history of derogatory marks on their credit reports. You may qualify with a credit score of 620 or higher.
  • The Carrington Prime Advantage helps borrowers qualify for loans with a minimum credit score of 660 and negative credit events more than four years old.

Transparency of Carrington Mortgage Services

The Carrington Mortgage Services website does not provide information on interest rates and closing costs, although it does offer several educational guides on home buying and mortgage calculators.

You can start a mortgage application online, but you’ll need to call or visit a loan officer at one of their six branches to complete the process. Once you submit the request, you create an online account where you can upload documents and sign documents.

The biggest downside we’ve noticed about this lender is the history of customer complaints. The Better Business Bureau gave Carrington a letter “A” rating, although the lender scored 1.42 out of 5 stars based on customer reviews on the BBB website. The Consumer Financial Protection Bureau has received 3,731 complaints about this lender since 2011, and customers rated it approximately 2 out of 5 stars on a consumer rating page. It was also difficult to contact a loan officer by phone, although we were eventually put in touch with a representative.

Carrington Mortgage Services: Rates and Fees

The Carrington Mortgage Services website does not advertise lender interest rates or fees, but it does list several fees borrowers could pay after closing. Some of them include:

  • Fee of $ 5 to $ 20 to pay by phone, online or through a customer service representative
  • Check return fee of $ 7 to $ 50
  • Late fees generally equal to 5% of the principal and interest due
  • Property inspection fees of $ 15 to $ 20
  • Registration fees which vary by county

We also called the lender and got a list of closing costs borrowers could pay, including:

  • Lender fees (includes processing, underwriting and documentation fees) totaling $ 1,300
  • Third party fees (such as property fees and appraisal fees) which are typically 2% of the loan amount

The minimum credit score required by Carrington Mortgage Services varies depending on the type of loan. Conventional loans require a score of at least 620, although borrowers can qualify for FHA, VA, and USDA loans with a score as low as 500.

Carrington doesn’t charge any prepayment penalties on any of its loans and allows borrowers to lock in a rate for free once they sign a letter of intent to proceed. But fees apply to extend the rate lock-in. For a mortgage rate estimate and a full breakdown of the lender fees you could pay on closing, you will need to submit an application.

Refinancing with Carrington Mortgage Services

When you refinance, you take out a new mortgage, use the funds to pay off your original loan, and then pay off the new mortgage over time. Homeowners do this to save money, get better loan terms, or borrow money. Carrington offers several mortgage refinancing options, including:

Carrington Mortgage Services vs. Other Mortgage Lenders

Carrington Mortgage Services Wells fargo Guild Mortgage
Minimum credit score 620 for conventional loans; 500 for FHA, VA and USDA loans 620 620 for conventional loans; 600 for FHA, VA, and USDA loans; 680 for jumbo loans
Minimum deposit 0% to 3.5% depending on the mortgage program 0% to 3.5% depending on the mortgage program 0% to 3.5% on most loans; 15% on jumbo loans
Where does the lender operate? 48 states and Washington, DC All 50 states and Washington, DC All 50 states and Washington, DC
Main types of loans Conventional, jumbo, VA, FHA, USDA, adjustable rate, fixed rate, refinance, refinance by withdrawal Conventional, jumbo, VA, FHA, USDA, adjustable rate, fixed rate, refinancing, cash-out refinancing, construction loans Conventional, Jumbo, VA, FHA, USDA, Various Home Improvement Loans, Adjustable Rate, Fixed Rate, Refinance, Cash Refinance, Energy Efficient Mortgages, Manufactured Home Loans, Bridge Loans, Reverse Mortgages

How to Shop for the Best Mortgage Rate

Your home may be the biggest purchase you’ll ever make, so it’s important to find ways to save on that big expense. One method is to put together several loan estimates and compare the offers.

Start by identifying three to five of the best mortgage lenders, then submit a mortgage application and ask for a mortgage estimate. This is a standardized form, so it should be easy to determine which lender offers the best interest rate and the lowest closing costs.

Even a small difference in mortgage rates could save you hundreds or thousands of dollars over the life of the loan. For example, on a mortgage of $ 250,000 over 30 years, lowering the interest rate of just 0.25% saves the borrower $ 9,720 over the life of the loan. You may be able to negotiate additional savings if you also have strong credit.

At the end of the line

Carrington Mortgage Services provides basic home loans to borrowers in all states except Massachusetts and North Dakota. This could be suitable for consumers with less than perfect credit or independent borrowers. But when looking for a mortgage, it’s best to research your options and compare offers before you take out a loan.



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