Carrington Intros New Loan Product With No Closing Costs Or Upfront Fees

Posted by Patrick Barnard on November 12, 2014 No Comments
Categories : Residential Mortgage

Carrington Mortgage Services continues to take new risks and push the boundaries of traditional mortgage lending with the introduction of a new simplified home loan process with no closing costs or upfront financing fees.

The company claims its new ‘Carrington Loan’ eliminates 100% of loan closing costs for borrowers in the sub-640 FICO score range. This new offering is in keeping with the company's commitment to meet the needs of ‘underserved’ and first-time home buyers.

‘Many underserved borrowers, including first-time home buyers, still view the path to a mortgage loan as unattainable, complex and often cumbersome,’ says Ray Brousseau, executive vice president of Carrington Mortgage Services, in a release. ‘The Carrington Loan simplifies the process and improves the experience to help remove the anxiety, particularly for those who do not have sufficient cash on hand to pay closing costs.’

As Brousseau explains, ‘With The Carrington Loan, there is no need to modify the rate after it is presented to the borrower to offset loan costs and loan closing fees, and unexpected increases to estimated closing costs are not an issue. Removing these barriers greatly alleviates the stress on borrowers who desire to fulfill their dream of homeownership."

The Carrington Loan is unique in that there are no closing costs, appraisal fees or lender financing fees: Carrington pays all eligible loan costs as lender credits.

If any unanticipated lender costs arise, Carrington will issue a credit to cover them. This may include additional title or escrow service charges from the title or settlement company.

Earlier this year, Carrington lowered its minimum credit requirement to a FICO score of 550 for certain loans, and expanded its guidelines on a number of Federal Housing Administration, Veterans Affairs and U.S. Department of Agriculture loan programs, extending eligibility to more property types and reducing overlays.

As Brousseau explained during a recent interview with MortgageOrb, these ‘nonprime’ loans will not even remotely resemble the ‘subprime’ loans of 2005-2006, in terms of underwriting.

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