Carrington Mortgage Services is expanding its suite of mortgage options by adding the Federal Housing Administration’s 203k full loan program, to be offered through Carrington’s wholesale lending channel.
Carrington’s new 203k Full renovation loan program lets borrowers take out a single loan to finance both the cost of buying the home and the renovation costs, Carrington said in a release.
“The 203k Full program, 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,” Carrington said.
According to Carrington, the new loan program completes Carrington’s 203k suite of offerings, which also includes FHA 203k Streamline loans for properties needing minor repairs and upgrades.
For the new 203k full renovation loan, the amount determined before the repairs or renovations are made, with a maximum eligible repair cost of 50% of the “subject-to” value, Carrington said.
With this program, Carrington said that 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. Additionally, structural repairs qualify, including room additions.
“We are pleased to add the 203k Full program to our existing FHA offering through our wholesale business,” said Carrington Mortgage Services’ 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.”