Carrington Mortgage Services LLC has announced that it will offer the Streamline FHA 203K loan program, which allows for up to $35,000 in property repairs to be financed into the loan, through its retail and wholesale businesses. Carrington’s retail lending division will now control the complete operation cycle and related servicing for all of its 203K loans, which were previously offered as a brokered product. Carrington’s wholesale lending division will also add the 203K loan program to its portfolio of government-insured products as of April 1.
Intended for the purchase or refinance of properties that require minor repairs and upgrades, 203K loans are attractive to consumers as well as real estate agents who can benefit from extending their reach into untapped markets of prospective buyers. Borrowers interested in purchasing distressed properties, which accounted for between 20-25 percent of all home sales in 2012, may find the 203K loan an ideal solution for these types of properties that are often in less than move-in condition. For real estate professionals, having a single interface for getting these loans approved and funded can expedite closings–creating an added incentive to partner with a Carrington loan officer in their market. From a wholesale perspective, this initiative presents opportunities for purchase-focused brokers to work directly with real estate agents, consumers and investors throughout the front-end lifecycle of these loans, thereby maintaining involvement and increasing the potential for repeat or referral business.
“We are pleased to offer FHA 203K loans through our retail and wholesale businesses, and to bring all aspects of these transactions including underwriting and closing timelines under our control,” said Carrington Mortgage Services LLC’s Mortgage Lending Division Executive Vice President Ray Brousseau. “This initiative enables us to more effectively serve our customers as well as the brokers and realtors we partner with, allowing them to widen their markets and approach their local businesses with added confidence in what they have to offer.”