You have questions. We have answers.
Take a look at how the 21st Mortgage CASH program works to boost
sales for new, used and rental homes.
What is the CASH Program?
The 21st Mortgage CASH Program is a bundle of community focused programs designed for land-lease communities. CASH provides inexpensive capital for operators to fill vacant sites with new homes, affordable consumer financing for homes being sold in the community, and includes the option to finance rental homes.
When can a home be occupied?
Once you have received an email indicating that the loan is completed, you may then give the customer the keys.
What if I do not sell a spec home within 12 months?
Occasionally, we have homes that reach the 12 month mark. If you have a home that reaches the end of the 12 month period, you can either payoff the home or we can provide a commercial loan for the home to the operator using our Rental Home Program.
Can I make a profit on spec home sales?
One of the key principles of the CASH Program is affordability to the customer. Spec homes are to be priced just above cost to maximize the affordability to customers. For details on pricing, please contact a Business Development Manager.
What is the oldest home you will finance?
We can finance homes manufactured in 1976 or newer in most states.
What happens if I sell my community?
It is very common for us to see communities sold. The buyer can assume your commitments and obligations under the CASH Program, subject to 21st Mortgage approval.
What is needed to submit a Community Program application?
We provide a Community Application with a checklist of requested items, such as organizational documents, financials, etc. For the application and a complete list of required items, please visit our Apply page.
Is a manufactured home retailer's license required?
A manufactured home retailer’s license is required to participate in the CASH Program. Please contact the issuing agency in your state for application requirements. The manufactured housing association in your state may offer more guidance on the application process.
How long does it take to get setup on the CASH Program?
The time it takes from receiving the application to being set up for the CASH Program is highly dependent on the operator providing a fully completed application along with the checklist items. Once we have a fully completed application, it typically takes 5 business days to approve the community. An approval package will be emailed to you and upon receiving the completed approval package, it takes approximately 2 business days to process and have you set up.
HOME ORDERING & SETUP
How does setup reimbursement work?
Under the CASH Program, a key benefit is that 21st Mortgage will reimburse setup expenses related to the home. In general, the operator will contract with setup vendors and pay for the completion of the setup. Then, the operator will send 21st Mortgage all of the receipts and invoices for reimbursement. For details, please log in to the Resources page and refer to the setup reimbursement guide.
How many homes can I place into my community under the CASH Program?
Initially, we will start with placing one to three homes into the community. From that point, we will match the pace that you are selling or renting homes.
Are there any manufacturers from whom I cannot purchase homes?
All manufactured home brands are eligible.
What is the process to order new homes?
Once you are setup for the CASH Program, you can select homes that meet the specifications of your community from manufacturers and they will submit the approved order to 21st Mortgage. The home will be built and once it is ready to ship, 21st Mortgage will pay for the home.
What is covered in the set-up allowance?
Any item that is reimbursed for the setup expense while the home is vacant and out for sale are eligible to be financed into the customer loan. Eligible items include, but are not limited to, piers, footers, a concrete slab, vinyl or brick skirting, decks, steps, A/C unit and utility connections. Once the home is sold, there may be items eligible for financing in to the loan with the customer purchase that were not reimbursed for the setup expense. Supporting invoices may be required and will be reviewed to determine if the requested item and amount can be financed.
Where can I find a good set up contractor?
Manufactured home associations in your state are a great tool for accessing contractor contact information. Manufacturers and local retailers are also good resources for finding setup contractors.
Who handles the warranty and service on the homes?
Each manufacturer has their own guidelines to provide warranty and service work to the customer. Some manufacturers have a bill back service policy and other manufacturers have a service team to address issues. Please inquire with your chosen manufacturer to determine their service and warranty policy.
What is needed to submit a Consumer Credit application?
We provide credit applications for customers to complete and send to 21st Mortgage. A downloadable version can be accessed by logging in to our Resources page. Customers can also visit apply.21stmortgage.com to complete an online credit application. 21st Mortgage generally decisions completed applications within 24 hours of receipt.
Is there a minimum credit score requirement?
No, under the 21st Mortgage CASH Program we can finance all credit scores.
Is there a minimum down payment requirement?
We are able to offer financing for down payments as low as 5%, subject to underwriting guidelines
Who can I reach when I have financing questions?
We understand financing can be complicated, so we provide dedicated mortgage licensed loan originators to your customers. These specialists are called Community Account Managers.
How long does the loan process take from beginning to end?
This varies greatly due to how long it takes the consumer to submit needed documents, closing schedules, and post-closing document collection/correction. The loan process could go as quickly as seven to ten days.
Does the customer have to finance with 21st Mortgage?
No, if the customer finances their home through another lender, you simply request a payoff from your Community Account Manager.
What is the process for converting a spec home to a rental home?
Spec homes can be sold or rented. When you have a rental customer, please notify your Community Account Manager with the details of the home and they will prepare rental home loan documents.
What is the process for converting a rental home to a sale?
Many of your rental customers want to be homeowners, so as a benefit of the CASH Program, you can convert the rental to a sale anytime without early payoff fees. Customers interested in purchasing a home can apply for a loan by completing a credit application in your office or online at Apply.21stMortgage.com. As an incentive to the customer, 21st Mortgage offers these customers “new” home rates and terms on any rental home financed with 21st Mortgage and converted within 3 years of the rental contract.
Do the new home loans require a valuation?
Yes, any home financed by 21st Mortgage requires a valuation.
How do you determine the value of a used home?
21st Mortgage pulls NADA and Datacomp values to determine the value of a used home.
In the past, I have found that NADA values do not accurately reflect the values of my homes. Is there another option?
Yes, 21st Mortgage also uses Datacomp, which completes onsite appraisals in the community.
How do I get marketing materials for my community?
Visit www.21stmarketingmaterials.com to order materials or create an account.
I'm new to the community business. Do you have any resources available to me to help market and sell the homes?
Yes, we work with many new operators and have marketing point of sale materials available to you, free of charge. Visit www.21stmarketingmaterials.com to order materials or create an account. Consult your Community Account Manager anytime for marketing advice or training.