21st Mortgage: 5 essentials to know

21st Mortgage Corporation at a glance

• Conventional loans: No
• FHA loans: No
• VA loans: No
• Refinancing: Yes, manufactured homes only
• Adjustable rates: No
• Fixed rates: Yes, manufactured homes only

New manufactured homes can cost a fraction of new traditional homes. However, manufactured or mobile homes are often ineligible for certain loan programs, so financing a manufactured home isn’t always easy.

Unlike some lenders, 21st Mortgage specializes in loans for manufactured homes and offers financing for units with or without a permanent foundation. Depending on your credit and income, you could qualify for financing that covers up to 100% of the purchase price, eliminating the need for a down payment.

Pros

• Closing costs can be financed
• No private mortgage insurance (PMI) required
• Up to 100% financing available

Cons

• Higher rates than conventional financing
• Not available in all states
• No financing for rehab expenses for used homes

5 things to know about a 21st Mortgage loan

1. It only finances manufactured and mobile homes

Many banks and credit unions offer home loans and usually have several mortgage options. For example, a bank may offer Federal Housing Administration (FHA) loans, conventional mortgages, jumbo loans and construction-to-permanent loans.

21st Mortgage works differently — it only provides financing for manufactured and mobile homes.

With 21st Mortgage, you can buy new or used manufactured homes with or without a permanent foundation. If you’re buying from a dealer or an existing 21st Mortgage customer, the minimum loan amount is $16,000. The minimum for homes purchased by other individuals or refinancing loans is $25,000.

2. Its loans have higher rates than traditional mortgages

Depending on the type of manufactured or mobile home you’re buying and whether it has a permanent foundation, you may qualify for either a personal property loan — also known as a chattel loan — or a real property loan.

Across the industry, rates for manufactured homes tend to be higher than those for site-built homes, and that’s especially true if the mortgage is classified as a chattel loan.

21st Mortgage is one of the largest providers of chattel loans. With 21st Mortgage, interest rates can be several percentage points higher than the national average for conventional mortgages.

3. Up to 100% financing available

Although 21st Mortgage doesn’t offer government-backed mortgages like FHA or VA loans, it does allow eligible borrowers to finance up to 100% of the purchase price of a manufactured or mobile home.

Borrowers can also finance closing costs — with the exceptions of the appraisal and recording fees for the deed or mortgage — reducing how much cash buyers will need to close the deal.

4.No financing for improvement projects

21st Mortgage doesn’t offer rehab financing or loans for home improvements. At a minimum, all must meet local code requirements and have working plumbing, appliances, electricity, gas, locking doors, and sound roofing and flooring.

5. Loans aren’t available nationwide

21st Mortgage issues loans in most states. However, its loans are unavailable to Alaska, Hawaii, Massachusetts or Rhode Island residents. It also doesn’t issue home and land loans to residents of the following counties in Illinois: Cook, Kane, Peoria and Will. If you’re thinking about a 21st Mortgage loan, make sure to check availability in your state.

Who is a 21st Mortgage loan good for?

For those looking for a more affordable path to homeownership, 21st Mortgage could be a useful option.  21st Mortgage also has loans for homes and land, allowing you to buy a manufactured home with or without a foundation. Depending on your credit, you could finance up to 100% of the purchase price and even your closing costs.

However, 21st Mortgage’s rates can be high, so shopping around and comparing your loan options is a good idea. Depending on the home you’re interested in, you may qualify for a conventional mortgage or even an FHA loan at a more competitive rate.

How to apply for a 21st Mortgage loan

21st Mortgage has no prequalification option, so there’s no way to check your loan eligibility without affecting your credit.

Instead, you must complete an online application and consent to a hard credit inquiry. Afterward, a loan specialist will contact you to review the lender’s decision, loan options and next steps.

To fill out the application, you’ll need to provide the following information:

• Your full name, date of birth and address
• Your Social Security number or taxpayer identification number
• Income and employment information
• Selected home details, such as its size and the year it was built
• Details on the land or community where you intend to use the home
• The purchase price and desired down payment
• The name of the retailer or individual seller

According to the lender, the entire process — from submitting the application to closing — usually takes 4-8 weeks.

Not sure if 21st Mortgage is right for you? Consider these alternatives.

Before choosing a lender, it’s wise to shop around and get quotes from other lenders. If you limit your mortgage inquiries to a short window, such as 14 days, the credit bureaus treat it as a single hard inquiry, limiting the impact on your credit.

If 21st Mortgage isn’t a good fit for your needs, consider these alternatives:

• Rocket Mortgage: Rocket Mortgage offers conventional loans for manufactured homes with permanent foundations.
• Better: Better provides a 100% digital home loan experience and financing for both site-built and manufactured homes.