Carrington Mortgage has Expanded Guidelines

February 22, 2013
backerman

Carrington Mortgage Services has expanded  guidelines on specific loan programs to help you increase your business and serve more customers.
Pipeline Manager will be updated on Monday, February 26th.   To take advantage of these changes and lock under the new guidelines – contact our lock desk.
FHA Loan Programs, Conventional and High Balance Loan Amounts

  • Lowered the  Minimum FICO to 600
  • Bankruptcy: High Balance reduced seasoning requirement from 7 years to 2 years
    • With re-established credit paid as agreed or documented ability to manage finances if borrower elects not to re-establish credit.
  • Foreclosure/Short Sale:  High Balance reduced seasoning requirement from 7 years to 3 years with no subsequent derogatory credit.
  • Cash Out:  FICO > 620 allow up to Loan LTV.  FICO < 620 allow up to $50,000 cash out proceeds. 

Expanded Guidelines for First Time Home Buyers with FHA Purchase Loans

  • Lowered the Minimum FICO to 600
  • Rental Rating Requirements Expanded:
    • Conforming loan amount, FICO > 620, follow AUS Findings for VOR requirements.
    • High Balance, FICO >640, follow AUS Findings for VOR requirements.
  • Maximum ratios:
    • FICO 600 – 619, maximum ratios increased 5% to  45%/50% regardless of AUS approved ratios
    • FICO > 620, follow AUS Findings for ratios

FHA Streamline Refinance:   Close any time during the month.

  • Minimum FICO now 600 for conforming and high balance loan amounts
  • Requirement for AVM FICO  < 640 has been eliminated
  • Loans with prior modification, pre-foreclosure/foreclosure, NOD on subject property are now eligible on a credit qualifying streamline

VA Conforming & High Balance Loans:

  • Minimum FICO now 600 for conforming and high balance loan amounts
  • Bankruptcy: High Balance reduced seasoning requirement from 7 years to 2 years
  • Foreclosure/Short Sale:  High Balance reduced seasoning requirement from 7 years to 4 years
  • Cash Out: Max LTV increased from 90% LTV to 100% LTV.
    • LTV > 90%, cash out limited to the lessor of 1.5% of the loan amount or $5,000. 
    • Paying off an unseasoned 2nd TD is not included in the amount of cash out proceeds
  • Manual Underwrites allowed on VA purchases and cash out refinances

VA IRRRL:

  • Bankruptcy: High Balance reduced seasoning requirement from 7 years to 4 years
  • Foreclosure/Short Sale:  High Balance reduced seasoning requirement from 7 years to 4 years
  • Appraisal Requirements:
    • No 2055 or AVM required on VA loans currently serviced by CMS
    • For CMS non-serviced loans with loan amount <= $417,000, maximum 115% LTV. 
    • For CMS non-serviced loans with loan amount > $417,000 – a 2055 is required, maximum 115% LTV.

 

 

LOANS MUST BE LOCKED IN MARCH!

Contact your Account Executive with questions.

Submit a Loan Scenario

 

 

Become Approved

Government Agency Approvals

FHA Non-Supervised Mortgagee Approval #:
24751-0000-5
VA Automatic Lender Approval #:
902324-00-00

Mortgagee/Loss Payee Clause

Carrington Mortgage Services LLC
ISAOA/ATIMA
P.O. Box 692408
San Antonio, TX 78269-2408

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This information is provided for your convenience and Carrington Mortgage Services, LLC makes no warranties concerning the accuracy or completeness of any of the information. This is not financial or legal advice and should not be taken as such. This information is for mortgage professionals only and is not intended for distribution to consumers.
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An Equal Housing Opportunity Lender. Copyright 2007 - 2023 . Carrington Mortgage Services, LLC headquartered at 1600 South Douglass Road, Suites 110 & 200-A, Anaheim, CA 92806. NMLS ID # 2600. Toll Free # 800-561-4567. All rights reserved. Restrictions may apply. All loans are subject to credit, underwriting and property approval guidelines.  Nationwide Mortgage Licensing System (NMLS) Consumer Access Web Site: www.nmlsconsumeraccess.com.

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Government Agency Approval | FHA Non-Supervised Mortgage Approval #: 24751-0000-5 | VA Automatic Lender Approval #: 902324-00-00

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