Overview
Effective Thursday, August 9, 2018, Carrington Mortgage Services, LLC (CMS) will introduce the Investor Advantage Program. The Investor Advantage Program is well suited for Investors with some credit challenges and is convenient without the need for income documentation and traditional debt ratios to qualify. The borrower only needs to have positive cash flow for the subject property expressed as a Debt Coverage Ratio greater than 1.00.
Debt Coverage Ratio (DCR) is the expected Monthly Rents divided by the Total Monthly Payment. For example, if the expected gross rental amount for the property is $2000, then the total loan payment cannot exceed $2000. Other highlights are listed below.
General Highlights
- Recent Mortgage/Rental Lates up to 1x30x12
- Foreclosure, Short Sale, Deed in Lieu and Bankruptcy with 24 months seasoning
- Non-warrantable Condos and 2-4 Units Permitted (max 75% LTV)
- First Time Investors and Unleased Property (Refi Only) Permitted (max 70% LTV)
- No Reserves required
- No Income Documentation required
- No Mortgage Insurance required
Investor Advantage Program Terms
- Purchase, Rate/Term and Cash-Out Transactions (up to $750,000 cash-out)
- 5/1 and 10/1 LIBOR ARMs
- Maximum Loan Amount to $2.0MM
- Investment Properties Only
- Max LTV/CLTV with Debt Coverage Ratio ≥ 1.15: Up to 80%
- Max LTV/CLTV with Debt Coverage Ratio 1.00 - 1.14: Up to 75%
- Min FICO: 620
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