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Carrington Non-QM Program Guideline Updates

September 5, 2024

Overview

Beginning Thursday September 5, 2024, Carrington Mortgage Services, LLC (CMS) will implement the following guideline changes on Non-QM (Carrington Prime Advantage, Carrington Flexible Advantage Plus, Carrington Flexible Advantage, and Investor Advantage) loan transactions.

Updated Guideline Requirements

Program Changes
Carrington Prime Advantage
  • Increased Maximum Purchase & Rate/Term Refinance LTV to 85% (FICO = 680) and 80% (FICO = 660) for loan amounts ≤ $1,500,000 on Primary Residence & Second Homes
  • Increased Maximum Purchase & Rate/Term Refinance LTV to 80% (FICO = 720+) for loan amounts $1,500,001 - $2,000,000 on Investment Properties
  • Updated acceptable mortgage history rating to 1x30x12. One 30-day mortgage late is permitted in the most recent 12 months across all mortgages.
  • Increased ITIN Maximum LTV to 80% (FICO = 700+) and added 75% (FICO = 660) for loan amounts ≤ $1,500,000 on Primary Residence & Second Homes
  • Updated Gifts of Equity to add Second Home and Investment property transactions are allowed after meeting the borrower’s minimum contribution requirement
  • For Investment Property Transactions, updated First Time Investor requirements to reflect: When all borrowers are First Time Investors with no investment property ownership in the most recent 36 months, maximum LTV depends on qualifying FICO, For FICO 700+ = 80% LTV, FICO 680-699 = 75% LTV and FICO < 680 = 65% LTV
  • For Investment Property Transactions, increased Interested Party Contribution Limit from 2% to 4%.
  • Clarified that Asset Conversion may be combined with Bank Statement Documentation, however the bank statements used to calculate self-employment income may not be included in the Asset Conversion calculation
Carrington Flexible Advantage Plus
  • Increased ITIN Maximum LTV up to 75% (FICO = 660+) for loan amounts ≤ $1,500,000 on Primary Residence & Second Homes, Refer to matrix for specific FICO and Maximum LTV requirements.
  • Updated Gifts of Equity to add Second Home and Investment property transactions are allowed after meeting the borrower’s minimum contribution requirement
  • For Investment Property Transactions, Updated to First Time Investor requirements to reflect: When all borrowers are First Time Investors with no investment property ownership in the most recent 36 months, maximum LTV depends on qualifying FICO, For FICO 680+ = 70% LTV and FICO < 680 = 65% LTV
  • For Investment Property Transactions, increased Interested Party Contribution Limit from 2% to 4%
  • Clarified that Asset Conversion may be combined with Bank Statement Documentation, however the bank statements used to calculate self-employment income may not be included in the Asset Conversion calculation.
Carrington Flexible Advantage 
  • Reduced Minimum FICO for Alternative Income Documentation Types to 600, subject to Maximum 65% LTV for Purchase/Rate-Term Refi and Maximum 60% LTV for Cash-out Refi for Primary Residence and Second Home transactions
Carrington Investor Advantage 
  • Updated Additional LTV Limits to reflect Unleased Subject Prop for Rate/Term Refi = Maximum 70% LTV (Unleased Subject Prop Remains at Maximum 65% LTV for Cash-Out Refi)
  • Updated Bankruptcy, Short Sale, Foreclosure, Deed-in-Lieu, and Modification to 36 Months Seasoning required (formerly 48 Months).
  • Added Gifts of Equity are allowed after meeting borrower’s minimum contribution requirement.
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Equal Housing Opportunity An Equal Housing Opportunity Lender. Copyright 2026. Carrington Mortgage Services, LLC headquartered at 500 North State College Boulevard, Suites 1030, 1300, and 1400, Orange, CA 92868. 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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