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Old 08-10-2013, 11:33 AM   #1
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New Requirement for RV Loans?

While my wife and I were getting our 07 Holiday Rambler Ambassador serviced at LazyDays in Florida last fall we looked at new motorhomes. While talking with salesman we were told you can no longer qualify for an RV loan if you sell your home with the intent of buying a new coach and fulltiming. They stated it is a new rule and /or law that you must own real property to qualify for the loan. This contradicts what we have heard for years of people selling their "stick built" homes and hitting the road fulltime.
Can anyone shed some light on this situation?
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Old 08-10-2013, 11:42 AM   #2
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Depends totally on the lender. I guess LazyDays can't be bothered finding a lender that will work with full timer customers.
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Old 08-10-2013, 12:02 PM   #3
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We just went thru the same thing in June. We were buying a 2013 Winnebago
Journey 40u We are Fulltimers with no house. Use our daughters house address
all our mailing. The dealer trie to get us financing with the lender we already
Hat a loan with, plus a couple of others . We were rejected.
We applied with good SAMs our selves, was approved. Sent the aprovile
To the dealer and purchased the MH. We are now on the road in our new WINNIE.
THANKYOU Good SAMs !
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Old 08-10-2013, 12:05 PM   #4
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Check around rates and qualifications vary greatly. We were able to get a much better deal through our credit union than the dealer offered through the lender they use.
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Old 08-10-2013, 12:16 PM   #5
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I just looked, Bank of America states in RV loan requirements: "No vehicles used as a primary residence." I think that is not the industry standard, but having good credit would be a first step. Shop for a loan before shopping for an RV, and I wouldn't use a dealer connected lender, I prefer to do it myself.
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Old 08-10-2013, 03:35 PM   #6
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We are full timers and Sioux Falls SD.Alternative Resources is our mail forwarding service. The news letter we get every so often listed the name of a bank in Sioux Falls that is happy to provide loans to full timers. According to what I have read the law doesn't actually say that a home address that is not a commercial address is required but a lot of banks have either misread the law or decided on their own that one is required.
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Old 08-10-2013, 04:23 PM   #7
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If you are about to sell the stick house and go full time, the best advice is to lock in the RV loan before the house is sold. We financed our first MH that way with Bank of the West with no problems. We then went full time and changed our address with them to a PMB in South Dakota. Again, no problems. Then we traded for a new MH and applied to Bank of the West for financing. They turned us down flat, "no full timers". We had to go through hoops to get the loan. I saw that Good Sam were offering loans specifically for full timers. Out of interest I started the application process and guess what: I found I was completing a Bank of the West application! Go figure.
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Old 08-11-2013, 08:47 AM   #8
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We attended the Good Sam rally, summer of 2010, with the intent to do some window shopping and research toward our eventual "retirement home" purchase. I had just retired, Peggy wouldn't retire for another couple of years. We'd sold our primary home but still owned what had been a weekend and vacation home at the time. Our intent was to buy after selling the second home.

While at the rally we found out that it would be very hard to get an RV loan if we didn't own a conventional home/property. One loan broker at the event told us he represented 8 banks/loan companies, only one of them would even talk to you if you no longer owned a home and they would charge you at least a full point higher interest. Our window shopping switched to full on research leading to a purchase. At the time paying 100% cash for what we'd want would not have been an option.

We got a great rate, it's locked in for 20 years (done to keep the initial payments manageable while we still owned a home, and before Peggy retired).

Now that we're both retired, and have full access to our retirement accounts, it makes no sense to pay off the loan, our original intent, as we making three times the loan interest on our retirement investments, more when you factor in the tax write off. If/when the investment income slows we can reassess. My guess is that our next motorhome purchase, anticipated to be some time down the road, and probably our last, will be done with cash.

The unanticipated benefit of having made our purchase about a year before we went full time was the opportunity to get the vast majority of the bugs worked out before we lived in it full time.
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Old 08-11-2013, 09:57 AM   #9
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It sounds as if you don't own a home credit is insanely tight, forcing you to pay cash, oh well it will be paid off.
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Old 08-11-2013, 10:08 AM   #10
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Let be the devil's advocate for a moment. Can any of you imagine being a lending institution and financing say a $300k MH for a person with no real property or real address? They make a couple of payments than disappear. How do you locate them and repo the rig? Lot of space on the N American continent one can hide in the open. Thousands of RV parks, state parks, walmarts, truck stops and boonie areas. An older couple, driving a MH or towing a trailer, not breaking any laws seldom draws the attention of law enforcement. I understand their caution
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Old 08-11-2013, 10:21 AM   #11
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It makes sense it is a reality that we non home owners have to deal with
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Old 08-11-2013, 10:28 AM   #12
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Quote:
Originally Posted by doc View Post
Let be the devil's advocate for a moment. Can any of you imagine being a lending institution and financing say a $300k MH for a person with no real property or real address? They make a couple of payments than disappear. How do you locate them and repo the rig? Lot of space on the N American continent one can hide in the open. Thousands of RV parks, state parks, walmarts, truck stops and boonie areas. An older couple, driving a MH or towing a trailer, not breaking any laws seldom draws the attention of law enforcement. I understand their caution
Another possibility, so many individuals have walked away from their home mortgages that many lenders feel the same could happen with full timers who's rigs are their homes.
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Old 08-11-2013, 10:32 AM   #13
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Seems the banks are finding another way to slit their own wrist once more.

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Old 08-11-2013, 10:41 AM   #14
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Quote:
Originally Posted by Toyduck

Another possibility, so many individuals have walked away from their home mortgages that many lenders feel the same could happen with full timers who's rigs are their homes.
It's possible! I seem ti recall some threads in the past that dealt with this - and there was a tie in to some laws that came into effect post Sep 11th attempting to limit or get a handle on folks that were off the grid. Initially there was speculation that a full timer loan could not be made. It seems they may have become more difficult to obtain but not impossible. Lenders can interpret regulations and tailor their practices as they see fit as long as they are within the law and not discriminating. Your relationship with a lending institution will not trump their rules. But a solid track record, high credit score and enough money down can still find you a loan. Essex - GS - credit unions are still open to it. Hopefully the rules and regs don't tighten to the point of no FT lending by anyone. That would just be
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