New Offering From Carrington: Assumable Mortgages

Mortgage News February 22, 2023

Assumable mortgages have been added to the loan options offered by Carrington Mortgage Services (CMS).

With the new offering, a qualified buyer can now buy a home by taking over a seller’s loan, which includes the outstanding balance, rate of interest, term, and other terms. An existing mortgage with a lower interest rate than current market rates could result in interest savings, according to the nonbank company.

In order to educate the program’s qualified homeowners, prospective buyers, and sellers, Carrington’s real estate division, Vylla Home, works with them. Among the types of mortgages that are assumable, the company noted that VA and FHA loans can be assumed, while, under certain conditions, USDA and Conventional ARM mortgages may also be assumed.

Chad Ruggles, senior vice president at Vylla Home, said that in addition to letting potential buyers know that an assumable mortgage is an option, their real estate agents can also assist sellers. The 1,300-plus dedicated professionals at Vylla Home are uniquely positioned to assist buyers in identifying assumable mortgages.

It may be beneficial for sellers with eligible mortgages to advertise the assumption option as it makes their homes more attractive to buyers. Unlike conventional mortgages, assumed mortgages do not require appraisals and have lower fees. To be approved by CMS and take full responsibility from the seller, the buyer must go through the application and underwriting process.

A wide range of loan products is offered by Carrington, including USDA, VA, FHA, and conventional loans. Also included for non-traditional borrowers are non-QM and proprietary products. It’s possible for wholesale brokers to process a loan as part of Carrington’s underwriting process using its ProcessIQ product.

A second-lien program launched by CMS recently provides liquidity to existing customers whose homes have increased in value when market interest rates have risen.

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