Frequently Asked Questions
Q. Does the home have to be on a permanent foundation?
A. No. We can do singlewide and doublewide homes with or without a permanent foundation. This allows financing for homes on rented land, in parks, on leased property or on family land.
Q. Can the customer get pre-approved for a specific loan amount?
A. No. All applicant(s) will need to have complete Home Information (Year, Make, Model, and Dimensions), Purchase Price, Down Payment or Refinance Amount and Subject Property Address to begin the application process.
Q. What is the maximum loan to value?
A. Up to 95% LTV on a primary residence. Closing costs can be financed into the loan or seller concessions may be used. Credit quality, occupancy type, loan affordability, and collateral type will ultimately determine your loan-to-value or down payment requirement.
Q. What age of mobile home can be financed?
A. No age restrictions apply in most states. In AL, the mobile home must be 20 years of age or newer. In MS, the mobile home must be 1999 or newer and in NY, 1995 or newer.
Q. Is Homeowners insurance required and how much?
A. Yes. Full coverage homeowner’s insurance with 21st Mortgage Corporation as loss payee is required at all times. If you want to fully protect your home, coverage should include the current value of your home and improvements. This amount may differ from your existing loan balance. 21st Mortgage may accept a policy with coverage less than the loan balance if your loan includes financed non-insurable items such as land or land improvements. However, in the event of total destruction of your property, your insurance settlement may not pay off your obligation to 21st Mortgage. We suggest you consult an insurance agent of your choice regarding type and amount of coverage.
Q. Who orders the appraisal, title work, loan closings, etc.?
A. 21st Mortgage will order all necessary work on the loan. We will select the appraiser. The applicant may select the title company.
Q. Where do the loans close?
A. On a home only loan, the realtor/dealer holds the closing, or we will mail the documents directly to you. A notary must notarize several forms. Funds will be disbursed as quickly as possible after we received the completed closed loan package back in our office. On a land/home loan, all real estate transactions must close with a title company or attorney. Funds will be disbursed at closing.
Q. Can the mobile home be purchased through a Mobile Home Dealership (Retailer)?
A. Yes. All mobile home dealerships must be an approved vendor before applications can be accepted.
Q. How long does it take between loan application and closing?
A. Approximately four to six weeks for home-only and six to eight weeks for land/home.
Q. What closing fees are charged?
A. Fees for origination, credit bureau, title transfer, and appraisal can be charged if applicable. Other fees that can be charged, if applicable, include Title/Escrow/Attorney fees for closing the transaction. All closing costs can be financed into the loan if necessary except for the cost of appraisal (if applicable). Seller concessions are also acceptable up to the full amount of closing cost.
Q. What about the survey and termite letter?
A. 21st Mortgage does not require a survey or termite letter on the property unless the insurer is unable to provide title insurance without one. If the customer requests a survey or termite inspection, they must pay for it out of pocket. We will not finance the cost of a survey or termite inspection unless it is a requirement of the title company.
Q. What do you mean by____? (Glossary of terms)
Amount Financed The amount financed is the amount of credit provided to you or on your behalf. It is calculated by determining the principal loan amount or the cash price (subtracting any down payment); adding any other amounts that are financed by the creditor and are not part of the finance charge; and subtracting any prepaid finance charge.
Appraisal A certified opinion or estimate of value.
Closing In real estate transactions, the final set of procedures in which documents are executed and the transaction is finalized.
Closing Cost Expenses incidental to closing a Manufactured home loan such as loan fees, title fees, appraisal fees, closing fees, points, etc.
Debt A loan that consolidates other outstanding debts into one consolidation loan facility for the purpose of reducing payments or interest expense cost.
Deed A conveyance instrument given to transfer title to real property upon sale.
Deed of Trust An instrument used in many states in place of a mortgage. Title to property is transferred to a trustee by the borrower (trustor) in favor of the lender (beneficiary) and reconveyed upon payment in full.
Default A breach or nonperformance of the terms of a note or covenants of a mortgage.
Delinquency Failure of a borrower to make timely payments under a loan agreement.
Disclosure Information relevant to specific transactions that is required by law.
Disbursement Actual payment of moneys. One time or multiple loan funding.
Equity The market value of real property, less the amount of existing liens.
Fee Simple An enduring, inheritable interest in land that may be legally honored until the death of all potential heirs of the original owner, and that the owner is free to convey at any time.
Finance Charge Fee for the cost of a loan including interest and points.
Lien A legal hold or claim of a creditor on the property of another as security for a debt.
Mortgage To hypothecate (pledge) as security real property for the payment of debt. The borrower (mortgagor) retains a possession and use of the property, provided he/she continues to pay the debt. Also, the instrument by which real estate is hypothecated (pledged) as security for the repayment of a loan.
Mortgagor The party lending the money and receiving the mortgage. Some states treat the mortgagee as the "legal" owner, entitled to rents from the property. Other states treat the mortgagee as a secured creditor, the mortgagor being the owner. The latter is the more modern and accepted view.
Recording Filing documents affecting real property as a matter of public record, thereby giving notice to future purchasers, creditors, or other interest parties. Recording is controlled by statute and usually requires the witnessing and/or notarizing of an instrument to be recorded. Recording requirement vary from state to state.
Satisfaction Discharge of an obligation by payment of the amount due, such as on a mortgage, deed of trust or contract; or payment of debt, such as satisfaction of a judgment. Also the recorded instrument stating such payment has been made.
Staged Funding A payment process that allows the dealer to be paid at predetermined intervals throughout the construction phase.
Title Insurance Insurance against loss resulting from defects of title to a specifically described parcel of real property. Defects may run to fee (chain of title) or to encumbrances.
Title Opinion In counties where attorneys examine abstracts or chains of title, a written opinion, executed by the examining attorney, stating that title is vested as stated in the abstract.
Title Search A review of all recorded documents affecting a specific piece of property to determine the present condition of title. A title search is usually completed by a title company rather than an attorney.