In the 21st century, home financing has evolved dramatically, offering innovative solutions that cater to the needs of a diverse range of homebuyers. Among these, 21st Mortgage Corporation stands out as a leading lender, especially for individuals seeking financing for manufactured and mobile homes.
Understanding the ins and outs of 21st Century Mortgage can help you make informed decisions about your mortgage options and find the perfect fit for your financial situation.
What Is 21st Mortgage Corporation?
21st Mortgage Corporation is a well-established lender that specializes in financing manufactured homes. Founded in 1995 and headquartered in Knoxville, Tennessee, the company is now owned by Clayton Homes, which itself is a subsidiary of Berkshire Hathaway.
With such backing, 21st Mortgage has become one of the largest lenders in the U.S. for manufactured homes, with a loan portfolio exceeding $9 billion.
The company is well-known for its niche focus, which allows it to serve homebuyers who might struggle to secure financing through traditional mortgage lenders.
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Why Manufactured Homes?
The 21st-century housing market has seen a significant rise in the demand for affordable housing, and manufactured homes provide a cost-effective alternative for many. These homes are often more affordable than site-built homes, and they offer flexibility for those looking for a more affordable, customized living solution.
However, financing a manufactured home can be tricky, as many traditional lenders are hesitant to offer loans for these properties. This is where 21st Mortgage comes in, offering specialized loan products tailored to the unique needs of manufactured homebuyers.
Loan Options Available at 21st Mortgage Corporation
21st Mortgage offers a variety of loan products, primarily focusing on home-only loans and land-and-home combination loans. Here’s what you need to know about the main options available:
1. Manufactured Home Loans
The company’s bread and butter is manufactured home financing. This includes homes that are already placed on a lot or that will be moved to a location you own.
If you don’t own land, 21st Century Mortgage also provides loans for the purchase of land and the home together. These loans can be structured as fixed-rate mortgages, offering predictability in monthly payments.
2. No-PMI Loans
A significant advantage of 21st Mortgage is that it does not require Private Mortgage Insurance (PMI) on its loans. PMI is typically required by other lenders when a borrower makes a down payment of less than 20%, which adds to the cost of homeownership.
By waiving this requirement, 21st Mortgage makes it easier for buyers to manage their monthly payments.
3. FHA, VA, and USDA Loans
In addition to its proprietary products, 21st Century Mortgage also offers FHA, VA, and USDA loans, allowing borrowers to take advantage of government-backed programs.
FHA loans, for instance, are ideal for first-time homebuyers, while VA loans are designed for veterans and active-duty military personnel.
How to Secure a 21st Mortgage Loan?
Applying for a mortgage with 21st Mortgage is relatively straightforward, but there are a few key steps you should be aware of.
Once you’ve selected a home, the first step is to apply through the company’s online portal. You’ll be asked to provide personal information, including your income, employment history, and details about the property you’re purchasing. From there, a loan originator from 21st Century Mortgage will reach out to discuss the next steps.
The approval process typically takes about 4 to 6 weeks for home-only loans and around 6 to 8 weeks for land and home combination loans. It’s important to note that 21st Mortgage works closely with you during this process, ensuring you understand each step.
What Do You Need to Qualify?
One of the reasons 21st Mortgage is so attractive to manufactured homebuyers is its flexible credit and down payment requirements. Unlike conventional lenders that may require a minimum credit score of 620, 21st Century Mortgage is willing to work with borrowers with scores as low as 575, depending on the loan product.
However, there’s a catch—borrowers with lower credit scores may need to put down a higher initial payment, sometimes up to 35%.
For most borrowers, down payment requirements range from 5% to 35% of the home’s value, though in some cases, 0% down payment loans are available. This flexibility is a significant benefit for individuals who may not have a large amount of savings but still wish to become homeowners.
Costs and Fees
As with any mortgage, there are costs and fees associated with a loan from 21st Mortgage. These include origination fees, credit report fees, title transfers, appraisal fees, and closing costs.
It’s important to understand that while some fees are standard across the mortgage industry, 21st Century Mortgage allows you to finance most closing costs, except for appraisal fees and recording fees.
Typically, closing costs can range from 2% to 5% of the loan amount. Although the company doesn’t publicly disclose specific amounts for its fees, borrowers are entitled to receive a Loan Estimate after applying. This document outlines the loan terms and all associated costs, ensuring transparency in the process.
You may want to use their mortgage calculator for a better estimation.
Pros and Cons of 21st Century Mortgage
Pros:
- Specialized Focus: 21st Mortgage’s focus on manufactured homes makes it an expert in this niche, providing tailored solutions for homebuyers.
- Flexible Credit Requirements: Borrowers with low credit scores can still qualify, although they may need to meet higher down payment requirements.
- No PMI: One of the standout features of 21st Century Mortgage is that it doesn’t require PMI, potentially saving homeowners hundreds of dollars each month.
- Government-Backed Loans: The availability of FHA, VA, and USDA loans offers additional opportunities for homebuyers to take advantage of government programs.
Cons:
- Higher Interest Rates: Some borrowers have reported that the interest rates offered by 21st Mortgage are higher than those from traditional lenders.
- Limited Refinancing Options: 21st Century Mortgage primarily focuses on home purchase loans, so refinancing may not be as readily available.
- Availability: While 21st Mortgage operates in 46 states and Washington, D.C., it is not available in all areas, including Alaska, Hawaii, Massachusetts, and parts of Illinois.
Customer Reviews and Satisfaction
21st Mortgage has a strong reputation, with many customers praising the company’s dedication to personalized service. Borrowers have highlighted the professionalism of the staff and the ease of the loan application process.
According to reviews, over 60% of customers give the company a 5-star rating, pointing to its customer-first approach.
However, some complaints have emerged, particularly regarding higher interest rates and stricter down payment requirements for those with lower credit scores.
While this is a trade-off for offering loans to a broader range of borrowers, it’s something to keep in mind when comparing 21st Century Mortgage to other lenders.
Is 21st Mortgage Right for You?
If you’re in the market for a manufactured or mobile home, 21st Century Mortgage offers a variety of loan products that could be a great fit for your needs.
With flexible credit requirements, a wide range of loan types, and a no-PMI policy, this lender stands out in the manufactured home financing industry. However, it’s essential to weigh the pros and cons carefully, particularly regarding interest rates and the availability of refinancing options.
Final Thoughts
In today’s 21st-century housing market, 21st Mortgage Corporation provides a valuable service for homebuyers seeking affordable, flexible financing options for manufactured homes.
With a reputation for customer satisfaction and specialized knowledge in this niche market, 21st Mortgage is a solid option to consider for your home financing needs.
Whether you’re a first-time homebuyer or looking to secure a loan for a manufactured home, 21st Century Mortgage may have the solution you’re looking for.
