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Carrington Mortgage Services, LLC
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Non-QM Guideline Updates

March 23, 2023

  • All Non-QM Products
    • Brokers who also act as lenders may transfer appraisals to CMS in their own name when brokering a loan
    • Reduce FICO at which cash-out may be considered for reserves from 700-620
    • Reduce the number of required comparables for accessory dwelling units (ADU)
    • Permit rental income derived from ADUs when local laws permit ADUs to be rented
    • 2nd appraisal may be ordered from the same AMC as the first appraisal
  • Carrington Investor Advantage (DSCR)
    • Resales within 6 months ok  (subject to additional requirements)
    • Remove the requirement for the current lease on a leased primary residence when an institutional VOR (verification of rent) is provided
    • Update modification guidelines so that only certain distressed modifications require seasoning as a housing event
    • Permit cash-out down from 640 to 620 FICO
    • Updated 1st-time investor definition to no investment ownership within 36 months (was 12) - LTV benefit
  • Carrington Prime Advantage (FICO 660+)
    • Permit 3-4 unit primary residences
    • Multiple bank accounts are permissible when qualifying with business bank statements
  • Carrington Flexible Advantage Plus (FICO 620+)  
    • Multiple bank accounts are permissible when qualifying with business bank statements
  • Carrington Flexible Aadvantage (FICO 550+)
    • Permit 1099 & P&L income documentation with minimum 620 FICO
    • Multiple bank accounts are permissible when qualifying with business bank statements
  • Underwriting Exception Policy:
    • Overall net savings (NTB) for CFA, CFA+, and CPA may be used as a compensating factor  to support exception requests

Please contact your account executive or relationship manager if you have questions.

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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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Equal Housing Opportunity An Equal Housing Opportunity Lender. Copyright 2007 - 2024 . 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.

The content of this website is intended for licensed third party originators or brokers only and may not be duplicated or disseminated to the public. Carrington Mortgage Services is one of the leading wholesale mortgage lenders.

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

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