Lender expands its non-QM and conventional loan offerings with new products
Non-QM lender Carrington Mortgage Services (CMS) has rolled out a new 40-year loan and temporary buydown programs, expanding its suite of non-agency and government mortgage products.
According to its release, the 40-year mortgage option is available for all non-QM products (including Carrington Flexible Advantage, Carrington Flexible Advantage Plus, Carrington Prime Advantage, and Carrington Investor Advantage). The extended term is currently limited to fixed-rate products, but Carrington said it plans to offer it as an option for adjustable-rate products as soon as possible.
"Instead of the principal and interest payment being based on a 30-year term, the 40-year loan adds an additional 10 years to the term of the loan, taking the monthly payment down and improving affordability for homebuyers who need that longer term," said Greg Austin, executive vice president of mortgage lending for CMS. "We're able to qualify borrowers on the lower payment, so in addition to reducing their debt ratio, it helps them buy a little bit more property or make sure they're not overextending themselves."
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Meanwhile, the temporary buydown is designed for homebuyers seeking government and conforming conventional loans. The program allows customers to deposit up-front funds paid by the seller into a reserve account to temporarily reduce the interest rate and the effective monthly mortgage payment for a specific period of time.
"A temporary buydown benefits homebuyers during the first couple years of the loan, providing them with a reduced payment," Austin said. "For potential homeowners who need more financial flexibility, a temporary buydown can help get these buyers into a home."
The company also has future plans to include temporary buydowns for its non-QM loan product offerings.
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