Bank Financing: No more Full-Timers?

Batman_777 · 02-22-2011, 03:52 PM

I have heard this from two RV sales stores. Banks are no longer financing full-timers in excess of $150k and without a financial asset statement to back it up.

I know of a large RV sales store who just eliminated any and all diesel pushers since banks are no longer financing over $150k and no more full-timers (so they said). New government laws that went into effect this year, forces banks not to finance full-timers with some restrictions.

Credit Unions may still finance them.

Does anyone know about this?

SlocanPaul · 02-22-2011, 04:04 PM

And so they shouldn't. It's not a right for everyone to own a $150,000 RV and or home for that matter. It's about time the government had put some restrictions out there. On a whole this makes sense for the idea that those that can't really afford it will not be able to get themselves into more trouble financially, well it does to me anyway.

tncruiser · 02-22-2011, 04:17 PM

Quote:

Originally Posted by SlocanPaul

And so they shouldn't. It's not a right for everyone to own a $150,000 RV and or home for that matter. It's about time the government had put some restrictions out there. On a whole this makes sense for the idea that those that can't really afford it will not be able to get themselves into more trouble financially, well it does to me anyway.

the more the govt protects me the less safe i feel
thank God my hard work has provided me well and i do not need to finance my life style
brianj

Tha_Rooster · 02-22-2011, 04:34 PM

I believe if you have the money and good credit you should be able to buy whatever your heart desires if what I've read is true it should kill the slightly used db market also.

**Gary RVRoamer** · 02-22-2011, 06:16 PM

No conspiracy here - just an unintended consequence of a new banking regulation.

The government doesn't care what fulltimers finance or how much money the spend on their rigs. However, they do require that banks escrow the first years insurance and taxes on any mortgage loan, and that NOW (recent change) includes RVs. For a fulltime RVer, that raises the question of what jurisdiction, if any, they should be paying taxes to. The federal banking regulation is written for conventional fixed property mortgages and is unclear about how banks should handle movable property where the owner's domicile state may be somewhere other than where the property was bought, and also different than where it currently parked. Lacking any approved procedures for such loans, the banks just decided they wouldn't make any like that. Note that they are not required to ask if the borrower is a fulltimer, so "don't ask, don't tell" logic seems to apply.

Dadeaux · 02-22-2011, 06:23 PM

Banks are requiring financial statements to back up all loans now and they should have been doing that all along. If they had we would not be in this economic downturn. I recently renewed some business notes and I was asked for more detail than ever before but with proper documentation I'm good to go another 5 years.

Dixieray53 · 02-22-2011, 06:31 PM

I am the owner of a small. Less than 3 mil. in sales company. I had a very hard time getting my deal done. But I got it done. In NC, Bank of America has my loan as a AUTO LOAN. Yes the amount financed was just 90K. And I am not sure if the interest will be deductable. I still own a stick home. But no income verification loans where not a good thing in hind site...IMHO... D

D in Davie · 02-22-2011, 06:45 PM

Does anyone know how this would effect us potential buyers who do not want to full time but just use it a lot of time? I would like to trade up in a year or two but would probably stay with what I have if the other economic shoe drops.

Superslif · 02-22-2011, 06:55 PM

I have noticed my closest RV dealer doesn't stock any pushers anymore. You have to pre-order them. A few years ago you would see 4-5 pushers and 6-7 high end 5ers in the front row of the dealerships road frontage. Now you might see one pre-bought pusher sitting in the back lot. For years you would see the lot packed full of RV's, now the last few years it might be half full at best.....

Fred and Bonnie · 02-22-2011, 09:19 PM

I posted this article in Sept 2010 with a resounding thud, or well.

New federal regulations to limit loans to full-time RVers > RV Daily Report |

fred

bluepill · 02-22-2011, 09:41 PM

Interesting conversation. We just bought a used unit for a bit over 150K (with sales tax and 4 year warranty) with 10% down. Three lenders declined, but B of A (You remember them - One of the "troubled" banks) approved it. We each have credit scores of 800 and a decent income. No mention was made of full-timing.

Batman_777 · 02-23-2011, 09:52 AM

If the amount loaned was under 150k, then you're okay. The link posted above explains why the inacted loan laws for 2011 will have a major impact on the RV industry. And not a positive one. As for full-timers, the government doesn't like people not paying property taxes and who can move around at will. It's harder for them to pin you down. They like to keep people in a tight IRS box. Freedom? RV'ers have a little more of it.

paz · 02-23-2011, 10:51 AM

Quote:

Originally Posted by Batman_777

I have heard this from two RV sales stores. Banks are no longer financing full-timers in excess of $150k and without a financial asset statement to back it up...

This is actually an improvement from the previous iRV2 thread on this subject. The previous thread said NO financing for full-timers. I have no problem with banks trying to reduce their risk.