Overview
Effective March 2, 2026, Carrington Mortgage Services, LLC (CMS) will qualify all Fixed, ARM and Interest-Only Carrington Investor Advantage loans using the Note Rate.
Please Note: The updates listed below apply to loans that have not been locked yet. Encompass will be updated with the changes effective 3/5.
| Category | Requirements |
| Debt-Service Coverage Ratio (DSCR) | DSCR: Use Gross Rental Income/ Monthly PITIA Payment. Interest-Only DSCR: Use Gross Rental Income / Monthly ITIA Payment |
| Qualifying Payment | Fixed and ARM Loans: Use PITIA at the Note Rate Interest-Only Loans: Use ITIA at the Note Rate |
| Qualifying Reserves on ARM Loans | Reserves on ARM loans must be determined based on the Qualifying Payment. Reserves are measured by the number of months of the qualifying payment amount for the subject mortgage (based on PITIA or ITIA if Interest-Only) that a borrower could pay using his or her financial assets. |
Resources
For additional information, please refer to Carrington Correspondent.
Contacts
Please contact CorrespondentRM@carringtonms.com with any questions.
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An Equal Housing Opportunity Lender. Copyright 2026. Carrington Mortgage Services, LLC headquartered at 500 North State College Boulevard, Suites 1030, 1300, and 1400, Orange, CA 92868. 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: