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Carrington expands non-QM Flexible Advantage eligibility to 550 FICO
The update also allows up to 65% loan-to-value for eligible alternative-documentation loans, and adds new options for self-employed borrowers and investors.
Carrington Mortgage Services expanded its Flexible Advantage non-QM mortgage program with updated underwriting guidelines aimed at borrowers who may not qualify for traditional financing, HousingWire reports.
The changes include allowing alternative documentation eligibility for borrowers with FICO scores as low as 550, plus added options for self-employed borrowers, first-time homebuyers, and some experienced real estate investors. Carrington said eligible transactions can be financed up to 65% loan-to-value when using alternative documentation, and it added alternative income documentation for self-employed borrowers.
Carrington also removed FICO-based restrictions on eligible cash-in-hand funds used for reserves, and said the program can support borrowers who do not meet traditional debt-service-coverage ratio requirements. The company said brokers can revisit applicants who previously fell outside its prior requirements.
HousingWire added that the announcement comes after Carrington completed its acquisition of Valon Mortgage, which added about 810,000 loans to its servicing book. Carrington plans to use ValonOS, Valon’s mortgage servicing technology platform, as its core servicing platform, and it previously selected Kastle as an enterprise AI agent partner for its contact center and borrower-facing servicing operations.