21st Mortgage

About

21st Mortgage is a company that offers lending services for people planning to purchase mobile or manufactured homes. The company is known for its affordable loan products and excellent customer service. In addition to traditional home mortgages, this company also offers loans backed by the Federal Housing Administration and home refinancing. The FHA loans, in general, have less strict requirements than conventional mortgage loans, so it's possible to qualify for a down payment of just 3%.

The 21st Mortgage Corporation was founded in 1995 in Knoxville, TN. Two of the business's founding members, Rich Ray and Tim Williams, were part of the initial line-up of four employees. Nowadays, the company has evolved into a major provider of loans and a recognizable brand on top of that. The company operates in almost all the states and does so at a high level of efficiency.

Key Features

21st Mortgage is a financial institution that specializes in manufactured home financing. Here are some key features of 21st Mortgage:

1. Manufactured home financing. 21st Mortgage specializes in financing for manufactured homes, which are prefabricated homes that are built in a factory and then transported to a site for installation.
2. Flexible loan options. 21st Mortgage offers a variety of loan options, including fixed-rate loans, adjustable-rate loans, and FHA loans. They also offer a range of loan terms, from 5 to 25 years.
3. Online account management. Customers can manage their loans and make payments online through the 21st Mortgage website.
4. Customer support. 21st Mortgage provides customer support by phone, email, and live chat. They also offer a frequently asked questions (FAQ) section on their website.
5. Loan servicing. In addition to originating loans, 21st Mortgage also services loans, which means they handle the day-to-day management of the loan, including processing payments and managing escrow accounts.
6. Availability. 21st Mortgage operates in all 50 states of the United States, so customers can access their services no matter where they live.
7. Competitive rates. 21st Mortgage offers competitive interest rates for their loans, which can help customers save money over the life of the loan.
8. Credit requirements. 21st Mortgage has more flexible credit requirements compared to other lenders, which can make it easier for customers with lower credit scores to qualify for a loan. However, the interest rates and terms may be less favorable for customers with lower credit scores.
9. Special programs. 21st Mortgage offers special programs for customers who are first-time homebuyers, veterans, and those who are buying homes in rural areas.

Overall, 21st Mortgage is a reputable lender that specializes in manufactured home financing and offers flexible loan options, online account management, and customer support.

Pros and Cons

Pros 

• Available in most states. Affordable home loans are available in 46 states and also in the District of Columbia.
• They sell insurance. It's convenient when you can get coverage and financing under the same policy.
• It's possible to qualify for up to 100% funding. In other words, you can be approved for a full loan.
• It's possible to borrow using equity or cash. Once again, this marks the company as one of the lending providers that actually offer flexible conditions.
• It's possible to finance mobile/manufactured homes that were in use. Not too many lending companies are ready to finance a used property like that.
• Closing and origination fees can be funded as well. It's possible to broker a better deal, the one that makes more financial sense at the moment.
• There are no minimum credit score requirements. Even people with bad credit can be eligible for a loan - they will be asked to borrow using equity or cash.

Cons

• Loans are only available for mobile or manufactured homes. This company's offerings do not include any other type of home.
• There are no pre-approvals. You can't be pre-approved for a certain loan amount, and that might create some problems for some of the borrowers.
• Home mortgages with no down payment tend to have higher interest rates. The rate that you will get depends heavily on your past credit history.
• Different fees. They charge different fees, including an origination fee and a closing fee, and there are also prepayment penalties.

Products

21st Mortgage is a lender that specializes in providing financing options for manufactured and mobile homes. These types of homes are often called "factory-built" homes because they are constructed in a factory or manufacturing plant and then transported to their final location.

Manufactured homes are built according to federal building standards, also known as HUD Code, and are constructed on a steel frame with a permanently attached chassis. They come in a variety of sizes and floor plans, and can be single-wide or multi-section. Manufactured homes can be placed on private land or in a manufactured home community.

Mobile homes, on the other hand, were built before 1976 and do not meet current HUD code standards. However, the terms "manufactured home" and "mobile home" are often used interchangeably.

21st Mortgage offers several loan products to finance both new and used manufactured and mobile homes. These include:

1. Chattel Loans. Chattel loans are used to finance the purchase of a manufactured or mobile home that is not affixed to a permanent foundation. The home itself serves as collateral for the loan.
2. Land/Home Loans. Land/home loans are used to finance both the home and the land on which it is situated. This type of loan is used for manufactured or mobile homes that are affixed to a permanent foundation.
3. FHA Loans. 21st Mortgage offers FHA loans for manufactured homes that are built to HUD code standards. These loans are backed by the Federal Housing Administration and have more lenient credit and income requirements than conventional loans.
4. VA Loans. 21st Mortgage also offers VA loans for eligible veterans and their families who want to purchase or refinance a manufactured or mobile home. These loans are backed by the Department of Veterans Affairs and offer competitive rates and flexible qualification requirements.

In summary, 21st Mortgage offers a variety of loan products to finance the purchase or refinance of manufactured and mobile homes, including chattel loans, land/home loans, FHA loans, and VA loans.

Reliability

21st Mortgage is a well-established lender that has been in business for over two decades. They are licensed to operate in all 50 states of the United States and have a strong reputation for providing financing for manufactured homes.

In addition, 21st Mortgage is a subsidiary of Clayton Homes, which is one of the largest manufactured housing companies in the United States. This affiliation adds to their credibility and stability as a lender.

Furthermore, 21st Mortgage has a strong focus on customer service and offers multiple channels for customer support, including phone, email, and live chat. They also provide an FAQ section on their website, which can help customers find answers to common questions.

Overall, 21st Mortgage has a track record of reliability and customer satisfaction, and they are a reputable lender that customers can trust to provide financing for their manufactured homes.

Funding a Loan

When a customer applies for a loan from 21st Mortgage, the loan application is evaluated by underwriters who assess the customer's creditworthiness and ability to repay the loan. The underwriters consider various factors, such as the customer's credit score, debt-to-income ratio, employment history, and other financial and personal information.

If the customer is approved for a loan, 21st Mortgage funds the loan by providing the customer with the necessary funds to purchase their manufactured home. The specific funding process may vary depending on the type of loan, but generally, 21st Mortgage will work with the customer and the home seller to ensure that the loan is funded in a timely and efficient manner.

For chattel loans, the loan is typically secured by the manufactured home itself, which is considered personal property. For land and home loans, the loan is typically secured by a mortgage on the property where the manufactured home is located.

After the loan is funded, 21st Mortgage begins servicing the loan, which includes processing payments, managing escrow accounts, and handling any other day-to-day management of the loan. Customers can manage their loan online through the 21st Mortgage website and they can contact customer support if they have any questions or concerns.

Additional Services

In addition to providing financing for manufactured homes, 21st Mortgage offers a range of additional services to help customers with their housing needs. Here are some of the additional services that 21st Mortgage provides:

1. Insurance. 21st Mortgage offers insurance options to help customers protect their homes and belongings. They offer options for property insurance, flood insurance, and other types of insurance that may be required for manufactured homes.
2. Homeowner education. 21st Mortgage provides resources and educational materials to help customers understand the process of buying and owning a manufactured home. They offer information on topics such as home maintenance, financing, and insurance.
3. Home buying assistance. 21st Mortgage has a network of preferred dealers and real estate agents who can assist customers with finding and purchasing a manufactured home. These partners can help customers find the right home and negotiate the best price.
4. Referral program. 21st Mortgage has a referral program that allows customers to earn rewards for referring friends and family members who are interested in purchasing a manufactured home.
5. Online tools. 21st Mortgage provides online tools and resources to help customers manage their loans, make payments, and stay up-to-date on their account status. Customers can access their account information 24/7 through the 21st Mortgage website.

Overall, 21st Mortgage offers a range of additional services to help customers with their manufactured home financing needs. These services include insurance, homeowner education, home buying assistance, a referral program, and online tools and resources.

Terms and conditions

If you purchase a home from an affiliated retailer, the minimum loan amount you can receive is $15,000. If you choose to purchase a home outside of the network, you need to borrow at least $23,000. You can get a down payment as low as 0%, but the more common rates are between 5% and 35% of the property's value. It depends on your credit score, income, and several other factors. People with bad credit can end up paying up to 35% of the property's value as a down payment.

The fixed-rate loans usually vary in the neighborhood of 7.5%-12.5%. The high interest rates are caused by the fact that manufactured houses tend to lose approximately 30% of their market value in the span of just 2.5-3 years. The terms can stretch for as long as 30 years, but the more common range is 10-25 years. Investment property is an option that is limited to 10-year deals.

Finally, there are several costs included, namely origination fee, closing fee, processing fees, and prepayment penalties.