Carrington Mortgage Assumable Mortgage Guide: FHA and VA Loan Assumptions
Carrington Mortgage Services is one of the largest servicers of FHA and VA loans in the country, and every single one of those loans is legally assumable. If you find a listing where Carrington holds the mortgage, the buyer can take over that loan at the seller's original rate, keeping terms that may be dramatically below what new financing would cost today. On a $500,000 loan at 3.25%, that means $2,176 per month instead of $3,260 at current rates: a difference of $1,084 every month.
Here's what you need to know:
Which Carrington Loans Are Assumable?
FHA loans and VA loans serviced by Carrington Mortgage are assumable. Conventional loans are not. USDA loans cannot be assumed at the seller's original rate. If you see a property where Carrington is listed as the servicer and the underlying loan is FHA or VA, assumption is on the table.
Carrington has published its own buyer and real estate agent assumption guides, which means they are not hostile to the process. They have a dedicated assumption department and assign an Assumption Coordinator to each transaction who manages communication between the buyer, seller, real estate agents, and title company through closing.
To confirm the loan type on any property, check the MLS remarks, ask the listing agent, or look at the county records. An assumable mortgage specialist in Colorado can pull this information quickly across multiple listings.
FHA Loan Assumptions at Carrington
When you assume a Carrington FHA loan, you take over the remaining balance, the interest rate, and all original loan terms. The approval process works like a standard loan application: Carrington underwrites the buyer from scratch.
One feature specific to Carrington on FHA assumptions: they may offer a simultaneous Closed End Second Trust Deed to the assuming buyer for up to 80% of the difference between the assumable loan balance and the appraised property value. In plain terms, if there is an equity gap between what the seller owes and what the home is worth, Carrington can potentially offer second lien financing to cover part of that gap. This is not guaranteed and depends on qualification, but it is a tool most servicers do not offer directly.
For a detailed walkthrough of the FHA assumption process, see the FHA loan assumption guide for Colorado.
What you need to qualify for a Carrington FHA assumption:
- Credit score meeting FHA guidelines (580+ for standard approval; lower scores may require more documentation)
- Stable verifiable income with W-2s, pay stubs, or tax returns
- Debt-to-income ratio within FHA limits
- Funds to cover the equity gap, whether through cash, a second mortgage, or Carrington's optional second lien product
- Payment of applicable FHA assumption fees
VA Loan Assumptions at Carrington
VA loans serviced by Carrington follow the same legal framework as all VA loans: they are assumable by any creditworthy buyer, veteran or not. Federal law writes that right into every VA mortgage at origination. Carrington cannot deny the assumption on the grounds that the buyer is not a veteran.
What Carrington does control is the underwriting of the buyer. The assuming party must qualify through a full credit and income review. Expect to document income, employment history, and assets sufficient to cover the equity gap.
For a $500,000 Carrington VA loan originated at 3.00% in 2021, the remaining balance today is approximately $455,000. If the home appraises at $540,000, the buyer needs to cover an $85,000 equity gap. Use cash, a gift, a gap loan, or a HELOC. Run your own numbers at the assumable mortgage calculator.
VA Entitlement Considerations
When a non-veteran assumes a Carrington VA loan, the seller's VA entitlement stays tied to that property until the assumed loan is paid in full. The seller cannot use their VA benefit on a future purchase while the obligation remains open.
When a veteran assumes the loan, they can substitute their own VA entitlement, which releases the seller's entitlement immediately. For sellers who want to buy again using VA financing, a veteran-to-veteran assumption is far cleaner.
This is not a Carrington policy. It is a VA program rule that applies regardless of which servicer originated the loan. Full breakdown: VA entitlement and loan assumptions.
How the Carrington Assumption Process Works
Carrington has a structured process with an assigned coordinator, which is better than servicers who route assumption inquiries through generic customer service. Here is the sequence:
Step 1: Contact Carrington's assumption department. Call 800-561-4567 and ask specifically for the loan servicing or assumption team. Do not use the general customer line for a new purchase. Identify yourself as a buyer seeking to assume a specific loan (provide the property address).
Step 2: Receive the assumption application package. Carrington sends the buyer a complete package that includes the assumption agreement, release of liability forms, and the document checklist for underwriting.
Step 3: Complete the full application. Submit all required documents: government-issued ID, income documentation, credit authorization, asset statements, and the purchase agreement between buyer and seller.
Step 4: Carrington assigns an Assumption Coordinator. This coordinator is the single point of contact for all parties through closing. They interface with the buyer's agent, the listing agent, the title company, and the seller directly.
Step 5: Underwriting and approval. Carrington reviews the buyer's credit and income. Timeline varies, but 45 to 90 days is typical for VA and FHA assumptions industry-wide. Carrington is not known for unusually fast or slow turnaround.
Step 6: Closing. The seller is released from liability, the buyer assumes the loan, and the Assumption Coordinator confirms funding. The title company handles the standard closing documents.
Release of Liability for Sellers
Sellers should ensure the assumption includes a release of liability, which formally removes the seller from financial responsibility for the loan. Without it, the seller remains on the hook if the buyer defaults.
Carrington requires a release of liability as part of the standard assumption paperwork. Do not close an assumption without confirming this document is included. Your real estate agent or attorney should verify it before you sign.
For a full seller guide to the assumption process, see what happens to the seller after a mortgage assumption.
Costs to Assume a Carrington Loan
Assumptions generally cost less than new loans. You skip origination fees, discount points, and a full appraisal in many cases. Here are the costs you can still expect:
- Assumption fee: FHA allows up to $900; VA allows up to $300 plus 0.5% of the loan balance
- Title insurance and settlement fees: These apply as with any property transfer
- Credit report and underwriting fees: Standard processing costs
- Equity gap funding: This is usually the biggest cost. It is not a lender fee, but you need cash or financing to cover it
Compared to a new loan where origination fees alone can run $4,000 to $8,000 on a $500,000 mortgage, the assumption cost structure is materially lower.
Why Carrington-Serviced Listings Are Worth Targeting
Many buyers and agents filter listings by price range without checking the servicer. If you search specifically for homes where Carrington holds the mortgage and the loan is FHA or VA, you can find motivated sellers with assumable loans, low rates, and a servicer that has a formal assumption program in place.
Browse available homes with assumable mortgages in Colorado and filter by loan type. Once you find FHA and VA listings, your agent can verify the servicer with a quick call to the listing side.
Homes with assumable mortgages at rates below 4% are selling approximately 5% above market average in 2026 because buyers recognize the payment savings immediately. A $1,084 monthly savings capitalizes to roughly $65,000 in additional purchase power at a 6% rate. That is a real pricing signal.
Frequently Asked Questions
Can I assume a Carrington Mortgage loan if I am not a veteran?
Yes. VA loans serviced by Carrington are assumable by any creditworthy buyer regardless of military service status. You must qualify through Carrington's underwriting process, but veteran status is not a requirement. Be aware that a non-veteran assumption leaves the seller's VA entitlement tied to the property until the loan is fully repaid.
How do I find out if a property has a Carrington-serviced FHA or VA loan?
Ask the listing agent directly. You can also check public county records, which often show the servicer and loan type at origination. In Colorado, a title search will confirm the current servicer. Your buyer's agent can pull this information quickly.
How long does a Carrington mortgage assumption take?
Expect 45 to 90 days. VA and FHA assumptions require full underwriting, which takes time. Carrington's Assumption Coordinator process is structured to keep things moving, but do not schedule a closing date less than 60 days out from the date you submit your application.
Does Carrington require an appraisal on an assumed loan?
In some cases Carrington may waive the appraisal requirement. This is not guaranteed and depends on the loan type, the buyer's qualification profile, and other conditions. Your Assumption Coordinator will advise on whether an appraisal is required for your specific transaction.
What is the equity gap and how do I cover it with a Carrington assumption?
The equity gap is the difference between the home's current value and the remaining loan balance. If a home is worth $540,000 and the seller owes $430,000, the gap is $110,000. You can cover it with cash, a gift from a family member, a gap loan from a second lender, or in some cases Carrington's own second lien product for FHA assumptions. For a full breakdown of gap financing options, see the equity gap explainer.