Financing for full timers from factory direct

[Billett Bee]

We are going to start a build at the rv factory, wich those who don't know are not a dealer and are factory direct. This poses a problem as most financing institutions only want to loan to a dealer.
Personal bio. We full time, have a sd residency mailing address, zero debt to income ratio, 840 fico scores, putting 50% down on rv, so pretty much the ideal couple to loan to.
Most lenders require one of two things that we have found wich seems to be a snafu.
1: won't loan to factory direct
2: have to 2 sources of bill pay from your residence, water & electric bill
So what do you do. We don't have a stix and brix to get 2 bills from and the rvf is not a dealer. Rvf said they cater to ful timers buttttttt there lenders have to have 2 sources of bill pay from your non residency mailing address and must be your physical dwelling. We have called numerous lenders who say they are ful timer friendly but when we ask About loans to factory direct they say nope. We finally landed with alliant. All seems great, we were approved for a massive amount with in 30 minutes, yippee. Sent rvf the pre approval letter and they said alliant trys to dupe then all the time and before they will accept our pre approval letter that we need to get in writing that alliant will give a loan toward the rv factory direct. Contact alliant and now there like well we should be able to give a loan for factory direct, can you get me an invoice of sales to take to my under writers to approve.
We have never in all our days been through so much trouble to get a loan when we have perfect credit. This seems to be the first time we have run into problems with just having a residency.
What do folks who ful time and who have a residency mailing address do that are buying factory direct who don't pay cash and get a loan?

[Winterbagoal]

Having no idea who or which RV Factory Direct business you're dealing with, I searched for "Factory Direct RV BBB" and came up with some BBB/review entries for several, and they don't seem to have sparkling reputations. At least online, they don't.
Maybe that's part of the problem. Your lenders might be wary of lending you money that may be given to a high risk vendor. If they've seen the same reviews and BBB complaints.

[Billett Bee]

Originally Posted by Winterbagoal

Having no idea who or which RV Factory Direct business you're dealing with, I searched for "Factory Direct RV BBB" and came up with some BBB/review entries for several, and they don't seem to have sparkling reputations. At least online, they don't.
Maybe that's part of the problem. Your lenders might be wary of lending you money that may be given to a high risk vendor. If they've seen the same reviews and BBB complaints.

look up rvf, the rv factory, it has an a+ rating on bbb. Its a very good company. I went with alliant because they said they catered to ful timers and that our address was of no concern and that they deal with all dealerships. Key word is dealerships, rvf is factory direct. Rvf told me alliant tries to screw them over all the time but telling customers there approved, like they did me, then when it comes time to cut a check to a factory direct location, they won't do it. This is crazy. We're putting half down on a high end luxury rv and have scorers over 840 with no debt. Does anybody lend to a person with picture perfect credit history with a residency mailing address that is buying factory direct . Literally were zero risk. Surely the only way rvf sells rvs isn't by paying a couple hundred gssssss in cash our have a stix snd brix.

[Billett Bee]

Has any ful timers with a sd residency mailing address had any luck with getting a loan from alliant for a fifth wheel factory direct. Not a dealership rvf luxe.
Perfect credit and history.

[NLOVNIT]

Do you have any investments/investment portfolio? I've got a LOC through my investment company. Works the same as a HELOC on a S&B home - borrow against a security. In my case my investment portfolio is my security.

[arcaguy]

The problem you have is that you are essentially asking the bank to make you an unsecured loan. I realize you have excellent credit, I assume you are of good character but you are missing the third c of the 3 c's of credit - Collateral. The coach isn't built yet, so essentially what the factory is asking you and the bank to do is to finance work-in-process inventory, not something banks are generally willing to do. Their regulators don't like it either. Why, because a half finished coach is probably worth 5-10 cents on the dollar.
Like the previous posters have said you need to have some more salable collateral to make this deal work. Just a caution if you have a traditional IRA and you pledge it as collateral it is treated as a distribution and taxable, unless they have changed the rules recently. I believe 401 (k)s are treated the same although I believe you may be able to borrow from them. I guess my point is know the tax consequences before you do anything with a retirement plan. Good luck.

[SKP Kirk]

Why not finance through the Luxe website, if you can't find anyone else? Or are they running down Alliant because they want to push you into using their financing?

[Billett Bee]

Originally Posted by NLOVNIT

Do you have any investments/investment portfolio? I've got a LOC through my investment company. Works the same as a HELOC on a S&B home - borrow against a security. In my case my investment portfolio is my security.

We full time RV . We have our retirement ira's. We owe nothing and own what we travel with. Bought a 2020 $85 k truck last year with the same philosophy. Paid half down used Chrysler credit for incentives then paid it off 4 months later.

[Billett Bee]

Originally Posted by SKP Kirk

Why not finance through the Luxe website, if you can't find anyone else? Or are they running down Alliant because they want to push you into using their financing?

That's what i was trying to explain. Luxe told us for all there lenders that we had to be able to provide 2 separate bill pays like water and electric from a non mailing service and it had to be a physical dwelling. Sometimes we use our grandson for a stix and brix address for our personnel bank but we don't have anything on our name there that we pay on.

[SKP Kirk]

Originally Posted by Billett Bee

We full time RV . We have our retirement ira's. We owe nothing and own what we travel with. Bought a 2020 $85 k truck last year with the same philosophy. Paid half down used Chrysler credit for incentives then paid it off 4 months later.

So arrange for a cash sale and don't pay anyone interest.

[Billett Bee]

Originally Posted by arcaguy

The problem you have is that you are essentially asking the bank to make you an unsecured loan. I realize you have excellent credit, I assume you are of good character but you are missing the third c of the 3 c's of credit - Collateral. The coach isn't built yet, so essentially what the factory is asking you and the bank to do is to finance work-in-process inventory, not something banks are generally willing to do. Their regulators don't like it either. Why, because a half finished coach is probably worth 5-10 cents on the dollar.
Like the previous posters have said you need to have some more salable collateral to make this deal work. Just a caution if you have a traditional IRA and you pledge it as collateral it is treated as a distribution and taxable, unless they have changed the rules recently. I believe 401 (k)s are treated the same although I believe you may be able to borrow from them. I guess my point is know the tax consequences before you do anything with a retirement plan. Good luck.

I definitely understand it from the institutions point of view , but we are a highly exceptional risk for them to take. They already approved us for the amount. I have the pre approval email. Now luxe rvf is saying alliant had a history of doing this from there point of view an I need to get written documentation that the loan I was approved for will be good for factory direct and not a dealership.
I passed this on to alliant, they said send me an invoice of what your buying then ill send it to my under writers to approve then he said , YOU SHOULD BE FINE, as you can imagine , you should be fine is not very appropriate when getting a loan of that size.
I then told rvf that I need a sales invoice to pass along to alliant so they can approve luxe rvf as the official DEALERSHIP
Now I wait on luxe , but impatiently just because in all our decades we have never had any issue with getting money.
Can our 85k truck be used as collateral for an institution, it's still worth $70k

[Billett Bee]

Originally Posted by SKP Kirk

So arrange for a cash sale and don't pay anyone interest.

An your right, that's probobly what most folks do I would assume with the rvf. I just can't stomach the thought of taking all that out of my savings because it would change our lifestyle of living. Kind of why I'm financing half the rv amount for the maximum time frame of 20 yrs, to keep the payments low to not change our lifestyle, and because we will be long gone before our 20 years comes around.

[Dutch Star Don]

Find an RV dealer near the factory. Pay the RV dealer a fee to process the coach transaction and then handle the financing for you. They'll make money on the fee and the loan. Maybe convince the dealer, this could be a money maker for others doing the same thing.

[Billett Bee]

Originally Posted by Dutch Star Don

Find an RV dealer near the factory. Pay the RV dealer a fee to process the coach transaction and then handle the financing for you. They'll make money on the fee and the loan. Maybe convince the dealer, this could be a money maker for others doing the same thing.

That would have to be a pretty hefty charge on the dealerships behalf to off set the taxes there going to have to pay. I could see it working, but that charge would probably be to much to consider it. Great idea though, could be a good marketing tool for a dealership to use once its fine tuned