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Carrington Mortgage Services is one of the best bad credit mortgage lenders, thanks to its low minimum credit score requirements and willingness to work with those who have recent negative events on their credit reports. We especially like that borrowers can get an FHA or VA mortgage from Carrington with a score as low as 500. But this lender lacks transparency when it comes to rates.
Carrington Mortgage Services
On Carrington's website
Insider’s Rating
3.98/5
Perks
Available to borrowers with scores as low as 550 or negative credit events like bankruptcy on their credit reports
Recommended Credit
620
Minimum Down Payment
3%
Types of Loans Offered
Conforming, FHA, USDA, VA, Carrington Flexible Advantage, non-qm
Pros
- Multiple non-QM options
- Mortgage options for recent credit events
- Minimum credit score for FHA and VA loans is 500
Cons
- Not available to residents of North Dakota or Massachusetts
- No home equity loans, HELOCs, reverse mortgages, or construction loans
- No personalized interest rates shown online
Insider’s Take
Carrington Mortgage Services is our top low credit score mortgage lender, thanks to its low minimum credit score requirements and willingness to work with those who have recent negative events on their credit reports. We especially like that borrowers can get an FHA or VA mortgage from Carrington with a score as low as 500.
Product Details
- Offers mortgages in all US states except Massachusetts and North Dakota
- Accepts alternative forms of credit, such as proof that you pay bills on time, if you have a low/no credit score
- Minimum credit score and down payment displayed are for conforming mortgages
Understanding Carrington Mortgage Services
Nationwide Lending
Carrington Mortgage Services is licensed to lend mortgages in 48 states. It doesn't lend inMassachusetts or North Dakota.
Loan Options
Carrington offers the following types of home loans:
- Conforming loans
- FHA loans
- VA loans
- USDA loans
- Non-QM loans, including options for self-employed borrowers and those with poor credit. Loan amounts can go up to $3.5 million
Carrington Mortgage Services Interest Rates and Fees
Based on our review of Home Mortgage Disclosure Act data, Carrington's mortgage rates are right around average.
Carrington doesn't show any sample mortgage rates on its website, making it difficult to get an idea of the range of rates it's currently offering. To get a rate quote, you'll need to start an application or talk to a loan officer.
In 2022, the average borrower getting a conventional loan from this lender paid $4,673 in origination charges, according to HMDA data. This is around average compared to other lenders.
Carrington Mortgage Services Overall Lender Rating
Loan Types: 4 out of 5
Carrington is a good lender if you're looking to get a non-QM loan, since it has multiple non-QM options that can help borrowers in a variety of different situations qualify for a mortgage. It also has conventional and government-backed loans.
Affordability: 4 out of 5
We think that Carrington is overall a very affordable lender, particularly for borrowers with less-than-perfect credit. If you're having trouble qualifying for a mortgage elsewhere, you might have some luck with this lender. However, its rates and fees are just average.
Customer Satisfaction: 4.93 out of 5
On its Zillow lender profile, Carrington has a 4.93 out of 5-star rating, based on over 900 customer reviews.
Trustworthiness: 3 out of 5
The Better Business Bureau gives Carrington an NR, or "no rating" because the lender is in the process of responding to previously closed complaints. The BBB looks at a company's responses to customer complaints, transparency about business practices, and honesty in advertising.
Carrington does have a recent public scandal. In November 2022, the Consumer Financial Protection Bureau ordered Carrington to pay $5.25 million in fines for supposedly violating borrowers' CARES Act rights. The CFPB claims that the lender misled borrowers seeking CARES Act forbearance and denied them key protections provided by the pandemic-era law.
Carrington Mortgage Services Pros and Cons
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Loans for Low Credit, Recent Negative Events, and More
If you have a rocky credit history or a high debt-to-income ratio, you might be able to get a mortgage with Carrington. This lender has a few different non-QM loan options, including:
- Flexible Advantage Loan: Accepts credit scores down to 550 and allows recent negative credit events (including bankruptcy, short sale, foreclosure, or late payments), with loan amounts up to $1.5 million
- Flexible Advantage Plus Loan: Can have a bankruptcy or foreclosure provided it's at least three years old, with a minimum credit score of 620. Loan amounts go up to $2 million
- Carrington Prime Advantage Loan:These loans require credit scores of 660 or higher, but they offer better rates compared to the Flexible Advantage Plus Loan. Recent negative credit events are allowed, and you can borrow up to $3.5 million
Self-employed borrowers can use bank statements to apply for these loans. Term lengths go up to 40 years, which is longer than the standard 30-year mortgage.
Limited Conventional Loan Options
Though Carrington offers extensive non-QM loan options, its standard offerings are pretty limited. You won't be able to get a construction loan or reverse mortgage with this lender, and it doesn't have any home equity loan or HELOC options.
What Borrowers Are Saying About Carrington Mortgage Services
Business Insider looked at positive and negative customer reviews, online forums, BBB complaints, and other sources to understand what borrowers think about Carrington Mortgage Services.
Positive Experience With Knowledgeable Loan Officers
We saw many comments from previous borrowers that spoke positively about their experience getting a mortgage from Carrington. Overall, they found their loan officers to be professional, knowledgeable, and helpful in getting them through the mortgage process.
We did see some complaints about Carrington's mortgage servicing from borrowers who had their loans sold to the company. Complaints about servicers (the company that you make your monthly mortgage payment to) aren't uncommon, and we don't think it's necessarily a reason to avoid getting a mortgage from Carrington.
How Carrington Mortgage Services Compares
Carrington Mortgage Services vs. Fairway Independent Mortgage Corporation
Fairway Independent Mortgage Corporation is a strong, affordable mortgage lender that offers a variety of mortgages, including renovation loans, reverse mortgages, and physician loans. It also has a $7,000 grant for homebuyers.
But if you have a rocky credit history, Carrington might be a better fit for you. While you may be able to get a government-backed loan with a low score from Fairway, Carrington has multiple loan options that accept scores in the mid-to-low 500 range.
Fairway Independent Mortgage Corporation Review
Carrington Mortgage Services vs. Guild Mortgage
Guild Mortgageand Carrington are two of the best lenders for first-time homebuyers thanks to their flexible credit options. Guild is an especially good choice for borrowers because it offers such a wide variety of mortgages, including reverse mortgages, renovation loans, manufactured home loans, and ITIN loans.
Both lenders offer options for borrowers who might not qualify with other lenders due to their credit situations. With Guild, you can qualify with non-traditional credit such as rent payment history on some of its loans if you don't have an established credit score. Carrington has its non-QM options for borrowers with low scores or recent bankruptcies or other negative events.
Guild Mortgage Review
Carrington Mortgage Services FAQs
How good is Carrington Mortgage?
Carrington Mortgage Services has a 4.93 out of 5-star rating on its Zillow lender profile, which is based on reviews from people who got a mortgage from this lender. Carrington is a particularly good lender for those who have low credit scores or recent negative credit events.
Is Carrington Mortgage under investigation?
Carrington was ordered to pay $5.25 million to the CFPB in 2022 after the agency claimed that Carrington "unlawfully withheld legally mandated pandemic protections, wrongly imposed fees, and reported false information to credit reporting companies," according to CFPB Director Rohit Chopra.
Is Carrington Mortgage Services legit?
Yes, Carrington Mortgage Services is a legitimate mortgage lender that's been around since 2007.
What kind of company is Carrington Mortgage?
Carrington is a direct lender. This means it originates its own mortgages, as opposed to a mortgage broker, which connects you with multiple lenders to find the best fit.
Are Carrington Mortgage rates competitive?
Based on our review of HMDA data, Carrington's rates are around average compared to other lenders.
How is Carrington's customer service for mortgages?
Carrington has many positive reviews from previous customers who say that the lender offers great customer service.
Why You Should Trust Us: How We Reviewed Carrington Mortgage Services
To review Carrington Mortgage Services, we used our methodology for reviewing mortgage lenders.
We look at four factors — loan types, affordability, customer satisfaction, and trustworthiness — and give each a rating between 1 and 5, then average these individual ratings for the overall lender rating. Lenders get higher ratings if they offer a high number of loan types with affordable features, have positive customer reviews, and don't have any recent public controversies.
Mortgage Reporter
Molly Grace is a mortgage reporter at Business Insider with over six years of experience writing about mortgages and homeownership. She currently covers mortgage rates, refinance rates, mortgage lender reviews, and homebuying.Before joining the Business Insider team, Molly was a blog writer for Rocket Companies.You can reach Molly at mgrace@businessinsider.com, or on Twitter @mollythegrace.
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