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Carrington Mortgage Services LLC has announced that it will offer the FHA 203k Full loan program through its national wholesale lending division. Carrington’s new 203k Full renovation loan program is a program through which borrowers can take out a single loan to finance both the cost of buying the home and the renovation costs. The 203k Fullprogram, further delivering on Carrington’s commitment to provide innovative products for underserved applicants, is available for borrowers with a minimum FICO score of 550, and provides an option for first-time homebuyers and other underserved consumers to enter the market.
This initiative presents additional opportunities for purchase-focused brokers to work directly with real estate agents, consumers and investors to extend their purchase home loan offerings. Carrington will provide 203k training to its broker partners beginning in April and throughout the program’s launch period. Mortgage brokers can sign up for the company’s "Daily Rate Report" at www.CarringtonWholesale.com.
This new loan program completes Carrington’s 203k suite of offerings, which also includes FHA 203k Streamline loans for properties needing minor repairs and upgrades. The total amount of the 203k Full renovation loan is determined before the repairs or renovations are made, with a maximum eligible repair cost of 50 percent of the “subject-to” value. With this program, lenders will need a professional estimate, or an “as-repaired appraisal,” of what the fair market value of the home will be after the repairs are completed. Structural repairs qualify, including room additions.
FHA 203k loans are attractive to consumers as well as real estate professionals. Borrowers interested in purchasing distressed or older properties may find the 203k loan an ideal solution for these homes that are often in less than move-in condition. For real estate professionals, the FHA 203K Full loan program further expands the types of properties available to their clients. In addition, having a single point of contact for getting these loans approved and funded can expedite closings, which is an added incentive to partner with a Carrington loan officer in their market.
“We are pleased to add the 203k Full program to our existing FHA offering through our wholesale business,” said Carrington Mortgage Services LLC’s Mortgage Lending Division Executive Vice President Ray Brousseau. “By enabling our customers to buy lower priced homes, fix them up and apply the financing toward those improvements, we’re expanding the accessibility of homeownership to borrowers—especially those in the underserved market.”