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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 2007 - 2025. 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.

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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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