Carrington Mortgage Now Offering FHA 203k Full Loans

Posted by Patrick Barnard on April 07, 2015 No Comments
Categories : Residential Mortgage

Building on its commitment to provide innovative mortgage products to underserved or first-time borrowers, Carrington Mortgage Services is now offering the Federal Housing Administration's (FHA) 203k Full Loan program through its national wholesale lending division.

The program gives borrowers an opportunity to take out a single loan to finance both the cost of buying a home and the renovation costs. It is available for borrowers with a minimum FICO score of 550.

Carrington says it will be providing training to its broker partners on the new product.

The company says this new program gives purchase-focused brokers a new opportunity to work directly with real estate agents, consumers and investors to promote homeownership among first-time and lower income borrowers.

This new loan program is designed for borrowers who are willing to take on homes that need minor repairs and upgrades. The total amount of the loan is determined before the repairs or renovations are made, with a maximum eligible repair cost of 50% of the ‘subject-to’ value.

With this program, lenders will need a professional estimate, or an ‘as-repaired appraisal,’ of what the fair market value of the home will be after the repairs are completed, the company says in a release. Structural repairs qualify, including room additions.

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