New Program to Eliminate Closing Costs and Simplify Loan Process

Carrington Mortgage Services, LLC, announced in a press release that it will make The Carrington Loan program available through its national wholesale lending division. This program was developed in order to support the company’s commitment to serve the “underserved” market and first-time homebuyers. The loan program gives borrowers a more transparent, simplified home loan process with no closing costs or upfront financing fees to facilitate home purchases.

“The Carrington Loan simplifies the loan process and improves the experience to help remove the anxiety often associated with a mortgage loan, particularly for those who do not have sufficient cash on hand to pay upfront financing fees, appraisal, and closing costs,” said Ray Brousseau EVP of Carrington’s the mortgage lending division. “With The Carrington Loan, there is no need for a mortgage broker 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 simplifies the process for our mortgage broker partners and their borrowers who desire to fulfill their dream of homeownership.”

The Carrington Loan is a government insured loan program, according to the company. Any upfront mortgage insurance or funding fee that may be required by a government agency may either be financed into the loan amount or paid by the borrower in cash at closing. The borrower must take responsibility for any additional services requested that are not part of the loan. This includes, but is not limited to, rate-lock extension fees, survey fees, and home warranty costs.

This initiative presents additional opportunities for purchase-focused brokers to work directly with real estate agents, consumers and investors to extend their purchase home loan offerings, the company said. “In addition, mortgage brokers who specialize in refinance opportunities provide The Carrington Loan as an option for FHA/VA borrowers.”

The Carrington Loan Offers:

• 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.

Industry experts say, one in three consumers has a FICO credit score below 650. These consumers often have trouble obtaining financing options. Carrington has lowered its minimum credit score requirement to 550, and expanded its guidelines on FHA, VA, and USDA loan programs, extending eligibility to more property types and reducing overlays last year.