Carrington Mortgage Services Review 2022

Good for: first-time home buyers or credit-challenged borrowers interested in government loan products.
Jan 5, 2022

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Our Take

4.5

NerdWallet rating 

The bottom line:

Carrington Mortgage Services has options for first-time home buyers and buyers with nontraditional credit histories. You can shop rates on the website and apply online.

Carrington
Carrington: NMLS#2600
Min. credit score
620
Min. down payment
5%
Loan types and products
Purchase, Refinance, Fixed, Adjustable, FHA, VA, USDA

Pros & Cons

Pros

  • Offers multiple low-down-payment loan programs.
  • May consider alternative credit data, such as bank statements and rent payments.
  • You can view customized rates for purchasing a home and apply online.

Cons

  • Doesn't offer home equity loans, HELOCs or renovation mortgages.
  • Lender fees and mortgage rates are on the high side, according to the latest data.

Compare to Other Lenders

NerdWallet rating 
NerdWallet rating 
Min. credit score

620

Min. credit score

620

Min. down payment

3%

Min. down payment

3%

Loan types and products

Purchase, Refinance, Home Equity, Reverse, Jumbo, Fixed, Adjustable, FHA, VA, USDA

Loan types and products

Purchase, Refinance, Jumbo, Fixed, Adjustable, FHA, VA

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Full Review

Carrington Mortgage Services at a glance

Carrington Mortgage Services has conventional and government-backed low- and no-down-payment loan options that give first-time home buyers a leg up, and it offers several online conveniences. You can shop rates online, but its rates and fees tend to be on the high end, according to the most recently available federal data.

  • Variety of loan types: 4 of 5 stars

  • Ease of application: 4 of 5 stars

  • Rates and fees: 2 of 5 stars

  • Rate transparency: 5 of 5 stars

Carrington Mortgage Services is the consumer-facing mortgage brand of Carrington Holding Co., a financial institution founded in 2003.

Since its inception, Carrington has had a lot of irons in the homebuying fire, including a real estate brokerage, a title business and a retail mortgage operation. Previously broken out under the brand Vylla, Carrington Mortgage Services puts direct-to-consumer lending back under the Carrington name.

Carrington Mortgage Services loan types

The Carrington mortgage menu offers conventional purchase and refinance loans, as well as mortgages from the Federal Housing Administration, Department of Veterans Affairs and U.S. Department of Agriculture.

Home buyers can choose between conventional and government mortgages with 15- or 30-year fixed-rate terms. Adjustable rate mortgages are also an option, with 5/1, 7/1, or 10/1 terms.

Refinance options at Carrington include the FHA streamline, USDA Streamline Assist and the VA streamline refinance, or IRRRL.

For first-time home buyers, Carrington offers Freddie Mac Home Possible and Home Possible Advantage loans, which are conventional loans with low down payments. These can help buyers who have good credit but don't have much saved for a down payment and aren't crazy about the mortgage insurance premiums that come with FHA loans.

Carrington's Flexible Advantage programs allow borrowers who may be self-employed, have what the industry calls a "thin credit file," or wish to apply with nontraditional credit data, like rent payment history or bank statements, to obtain purchase, refinance, cash-out and even jumbo loans.

Carrington Mortgage Services does not offer home equity loans or lines of credit.

Carrington Mortgage Services ease of application

Carrington's online application makes the process convenient. You can upload documents and sign them electronically, as well as track your loan's progress so you don't have to keep in constant contact with your loan officer for status updates.

Carrington Mortgage Services rates and fees

One of the most important considerations when choosing a mortgage lender is understanding what the loan will cost. In order to provide consumers with a general sense of what a lender might charge, NerdWallet scores lenders on two factors regarding fees and mortgage rates, according to the most recently available Home Mortgage Disclosure Act data:

  • Carrington Mortgage Services earns 2 of 5 stars for average origination fee.

  • Carrington Mortgage Services earns 2 of 5 stars for offered mortgage rates compared with the best available rates on comparable loans.

Borrowers should consider the balance between lender fees and mortgage rates. While it's not always the case, paying upfront fees can lower your mortgage interest rate. Some lenders will charge higher upfront fees to lower their advertised interest rate and make it more attractive. Some lenders just charge higher upfront fees.

You can decide to buy discount points — a fee paid with your closing costs — to reduce your mortgage rate.

Deciding whether to pay higher upfront fees is a matter of considering how long you plan to live in your home and how much cash you have to apply toward closing costs when you sign the loan paperwork.

Carrington Mortgage Services rate transparency

You'll find extensive information about product offerings and requirements on the Carrington website, as well as the ability to view customized mortgage rates. For purchase loan rates, click on the purchase button on Carrington’s homepage. If you aren’t an existing customer, click “no” to be taken to a form that asks for some basic information and leads to an extensive listing of rates that takes credit score and location into account.

More from NerdWallet

Methodology

NerdWallet’s overall ratings for mortgage lenders are evaluated based on four major categories: variety of loan types (purchase, refinance, fixed and adjustable, for example), ease of application, rates and fees and rate transparency. Among the factors we consider when scoring these categories are options to apply for and track loans online, the level of detail about mortgage rates on lender websites and our analysis of the rates and fees lenders reported in the latest available Home Mortgage Disclosure Act data. These scores generate ratings from 1 star (poor) to 5 stars (excellent).