Struggling to get approved for a mortgage because of bad credit? Carrington Mortgage Services might be worth a closer look. They specialize in helping borrowers with credit scores as low as 550—far lower than what most lenders will consider.
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Carrington is a direct lender that offers government-backed loans like FHA, VA, and USDA, plus conventional options. What sets them apart is their manual underwriting process, which looks beyond your credit score to consider things like rent history, bank statements, and employment stability. If you’ve been overlooked by traditional lenders, Carrington could offer the shot you need.
Carrington Mortgage Credit Requirements and Eligibility
Carrington Mortgage Services works with borrowers who have credit scores as low as 550, opening the door to homeownership for people many lenders would automatically reject. Instead of relying solely on automated systems, Carrington uses manual underwriting—meaning a loan officer reviews your entire financial picture.
This hands-on approach allows them to consider alternative credit data and compensating factors. You may still qualify for a mortgage if you can show:
- Consistent rent or utility payments
- A steady job history
- Recent bank statements showing stable finances
- A larger-than-average down payment
Manual underwriting gives more weight to your full financial behavior—not just your credit score. If your credit history isn’t perfect, but your recent financial habits are solid, Carrington may be willing to work with you.
Types of Home Loans Offered by Carrington Mortgage Services
Carrington Mortgage Services offers several loan options, with a strong focus on government-backed mortgages for borrowers with lower credit scores or limited savings. Here’s a quick breakdown of what’s available and who each loan is best suited for:
- FHA Loans – Ideal if you have a low credit score and can make a down payment of at least 3.5%.
- VA Loans – Designed for eligible veterans and active-duty service members. These require no down payment and no private mortgage insurance (PMI).
- USDA Loans – Another zero-down option for buyers purchasing in designated rural areas, with income limits that vary by location.
- Conventional Loans – Best for borrowers with stronger credit profiles and the ability to make a larger down payment. These often come with lower interest rates.
- Jumbo Loans – Used to finance homes that exceed conventional loan limits. Typically requires excellent credit and significant income.
- FHA 203k Loans – A great fit if you’re buying a fixer-upper:
- 203k Streamline: Finance up to $35,000 in renovations.
- 203k Full: Covers more extensive repairs, including structural work.
All of Carrington’s home loans are fixed-rate, so your interest rate won’t change over time. If you’re unsure which loan fits your situation, a Carrington loan officer can walk you through the options.
Carrington Mortgage Services Fees and Interest Rates
Carrington’s mortgage costs vary based on your credit profile, loan type, and location, but here’s what you can generally expect:
- Origination Fee: Usually ranges from $400 to $900 and is included in your closing costs.
- Prepayment Penalty: None. You’re free to pay off your mortgage early without any extra fees.
- Interest Rates: Rates depend on factors like your credit score, loan type, and down payment amount. You also have the option to lower your interest rate by paying discount points upfront.
To get a personalized rate estimate, you can use Carrington’s online prequalification tool. It won’t affect your credit and can give you a better idea of what to expect before you apply.
Carrington Mortgage Application Process Step-by-Step
Carrington makes the mortgage process relatively straightforward—especially for borrowers who need more flexibility or have lower credit scores. Here’s what to expect from start to finish:
- Get Prequalified: Start online or by phone to see what loan options you may qualify for.
- Submit Your Application: You’ll provide documentation for your income, assets, and employment history.
- Manual Underwriting: A loan officer reviews your full financial profile—not just your credit score.
- Complete a Homebuyer Education Course: Required before closing to ensure you understand your loan terms.
- Schedule the Inspection and Appraisal: Your loan officer will help coordinate these steps.
- Close Your Loan: Most loans close within 3 to 4 weeks, which is faster than many traditional lenders.
You can begin the process entirely online, over the phone, or—if available—at a local branch. Even if there’s no office near you, Carrington supports a fully digital experience from application to closing. Their online tools and one-on-one support help keep everything on track so you’re ready on closing day.
Carrington Mortgage Pros & Cons
Not sure if Carrington is the right lender for you? Here’s a quick look at the biggest advantages—and a few potential drawbacks—to help you decide.
Pros
- Low Credit Score Requirements: Accepts credit scores as low as 550
- Manual Underwriting: Evaluates the full financial picture, not just your credit score
- Down Payment Assistance: Partners with state programs to help qualified buyers cover upfront costs
- No Prepayment Penalty: You can pay off your loan early without added fees
- Fully Online Option: Apply, upload documents, and track your loan digitally
Cons
- Not Available Nationwide: Loans aren’t offered in Alaska, Massachusetts, North Dakota, or Vermont
- Fixed-Rate Loans Only: No adjustable-rate mortgage (ARM) options
- Customer Service Complaints: Some borrowers mention slow communication or follow-up issues
Special Features of Carrington Mortgage Services
Carrington is especially helpful for borrowers with low credit scores or limited savings. One standout feature is its partnership with 13 state-level down payment assistance programs, which can help eligible buyers get cash toward their down payment or closing costs.
Another strength is Carrington’s manual underwriting process, which allows a loan officer to consider things like rent history, bank statements, and employment stability. That gives applicants with non-traditional credit files a better chance at approval.
Carrington also offers helpful online tools, including a mortgage calculator, document checklists, and a secure portal for uploading files. These resources help keep the loan process on track and reduce surprises during closing.
Carrington Mortgage Reviews From Customers
Customer feedback on Carrington Mortgage Services is mixed—but leans positive, especially among borrowers with low credit scores who struggled to get approved elsewhere. Many customers appreciate the company’s ability to look beyond credit scores and offer realistic loan options through manual underwriting.
That said, some borrowers report frustrations with delayed responses or miscommunications during the loan process. Like many lenders, Carrington’s experience can vary depending on the individual loan officer.
Carrington holds an A+ rating with the Better Business Bureau (BBB), which suggests strong overall customer service and responsiveness to complaints.
Bottom Line
If you’ve been turned down for a mortgage because of your credit score—or you’re worried you won’t qualify—Carrington Mortgage Services is worth considering. They specialize in working with borrowers that many traditional lenders overlook, thanks to their flexible underwriting and government-backed loan offerings.
Just be aware of the potential for slower service, and make sure to compare your loan estimate with other lenders. But if you’re looking for a lender that’s willing to work with you based on your full financial story—not just a number—Carrington may be a good fit.