Yahoo's take: Carrington Mortgage Services has many mortgage options, including non-QM loans. It also offers insurance, title and real estate brokerage services through partner companies, but it has low customer satisfaction ratings and doesn't offer home equity loans or HELOCs.
Carrington Mortgage Services is a national mortgage lender offering a variety of mortgage types, including conventional, FHA, VA, USDA and non-QM loans. The company also offers insurance, title services, buyer concierge services and real estate brokerage through its affiliated real estate brokerage, Vylla Home.
The company isn't known for its customer satisfaction, ranking well below average in the 2023 J.D. Power Mortgage Servicer Satisfaction Study, and it's also under investigation by the Consumer Financial Protection Bureau for how it treated customers during pandemic-era forbearance periods.
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Key Benefits
Carrington offers a variety of loan programs, including conventional loans, FHA loans, VA loans, USDA loans, and non-QM loans.
The company also offers title services, insurance, real estate brokerage and homebuyer concierge.
Carrington originates loans in 48 states (except Massachusetts and North Dakota) and services in all 50 states and Puerto Rico, meaning that rather than selling the mortgages it originates to other companies to manage, Carrington services loans from other lenders.
Need to know
Carrington does not offer mortgages or HELOCs.
According to J.D. Power, the company has a below average customer satisfaction rating.
FHA loans and conventional loans are Carrington's most popular products, according to government data.
Types of loans offered
Carrington Mortgage Services for FHA Loan Borrowers
Carrington Mortgage Services offers two FHA loan options: FHA fixed-rate loans for home purchases and FHA streamline refinances when you want to refinance your existing FHA loan into a new loan.
FHA loans account for more than 55% of Carrington's total mortgage origination business, surpassing conventional loans and making it the lender's most popular mortgage product, according to data from the Mortgage Disclosure Act of 2023.
More Info: Best FHA Lending Institutions
Carrington Mortgage Services for mortgage lending
Carrington Mortgage Services doesn't offer home equity products (such as home equity loans or home equity lines of credit (HELOCs)), but we do offer cash-out refinancing, which is another strategy for turning your home equity into cash.
With a cash-out refinance, you take out a new mortgage with a larger balance than your existing mortgage, pay off the old loan, and receive the difference in cash. Many homeowners use the funds to pay for home improvements or consolidate credit card debt, but you can technically use it for anything.
A closer look: Cash-out refinance vs. HELOC
Carrington Mortgage Services Rates
Carrington isn't particularly forthright about its interest rates: The company doesn't advertise or feature sample rates on its website, and to get an interest rate estimate, you have to fill out an online application with the lender or speak with a loan officer.
Apply for a mortgage with Carrington
To apply for a mortgage with Carrington Mortgage Services, you'll need to fill out an online application through the lender's website or call (888) 267-0584. The company has several brick-and-mortar locations in Arizona, California, Colorado, Connecticut, Florida, and Texas.
Carrington Mortgage Services offers a variety of mortgage calculators, including a monthly payment calculator, mortgage affordability calculator, refinance calculator and loan comparison calculator, and our online learning center offers informational guides and articles on everything from home maintenance to improving your credit score.
Read more: How much home can you afford? Use Yahoo Finance's free home affordability calculator.
Compare Carrington Mortgage Services to other lenders
Carrington Mortgage Services vs. Fairway Independent Mortgage
Carrington Mortgage Services and Fairway Independent Mortgage offer fairly similar loan options. Fairway also offers home improvement loans and physician mortgages to help doctors and other medical professionals qualify for mortgages. However, Carrington offers non-QM loans, while Fairway does not. Both companies offer numerous online resources and tools for borrowers.
Fairway Independent Mortgage Reviews
Carrington Mortgage Services v. AmeriHome Mortgage
Carrington Mortgage Services and AmeriHome Mortgage offer similar mortgage options, but Carrington offers USDA loans and AmeriHome does not. However, neither company is transparent about interest rates. AmeriHome offers a variety of incentives that can save borrowers money, including interest rate reduction programs and refinance credits.
AmeriHome Mortgage Review
Carrington Mortgage Services FAQs
Why is Carrington Mortgage under investigation?
The Consumer Financial Protection Bureau has taken action against Carrington Mortgage Services for “deceptive acts and practices.” The CFPB alleges that the lender misled customers by charging improper fees during the COVID-19 pandemic.
Which bank owns Carrington Mortgage?
Carrington Holding Company, LLC owns Carrington Mortgage, an organization that provides mortgage lending, mortgage servicing, capital management, real estate, title and foreclosure services.
Is Carrington Mortgage suitable for those with poor credit?
Carrington Mortgage has several loan programs available for those with low credit scores: USDA and Flexible Advantage loans only require a credit score of 550, while FHA loans can potentially be obtained with scores of 500 (10% down payment) or even 580 (3.5% down payment).
This article was edited by Laura Grace Tarpley