Community Forums

rvethereyet · 04-08-2018, 10:09 AM

At a dealership yesterday, salesman said if you do not own the house you are living in, the bank will not give you a loan for an rv. Is this true? If this is true, what do full timers do when they want to buy a new rv and they no longer own a house?

Mr_D · 04-08-2018, 10:14 AM

Makes it harder to find financing, just have to shop around. We've never tried it though as we've always had a house.

hohenwald48 · 04-08-2018, 12:57 PM

Quote:

Originally Posted by rvethereyet

. . . what do full timers do when they want to buy a new rv and they no longer own a house?

Pay cash.

RRR · 04-08-2018, 01:04 PM

Did you believe everything else that he said? Bank is going to look for collateral and ability to pay. Most time dealership financing is higher rates, your better of to get loan on your own.

Gary RVRoamer · 04-09-2018, 11:51 AM

Quote:

Most time dealership financing is higher rates, your better of to get loan on your own.

My experience is different. I challenge the dealer to beat the best rate I can get myself and they've always been able to do so, sometimes a full percentage point. The key, though, is that you must shop the rates and not just take whatever is offered.

Gary RVRoamer · 04-09-2018, 11:55 AM

Quote:

salesman said if you do not own the house you are living in, the bank will not give you a loan for an rv. Is this true?

Maybe it is true of the lender they work with, but certainly not true of all of them. Owning a fixed home is usually a Plus point in the credit app, but hardly a requirement. Further, owing a lot on a home mortgage could impact your income vs debt ratio, always a key measure for credit.

**Spdracr39** · 04-09-2018, 12:04 PM

Sounds to me they are trying to prime you for a ridiculously high interest rate because they are doing you a favor by finding the only financing that will take you. This is a typical line shop around for a loan. The dealer makes a ton of money on these "special circumstance" loans. Sometimes they even get part of the interest you pay. At the very least they get a sizable kickback. Your home has nothing to do with your rv financing except for the affect it has on your credit score. Your home is not collateral for an RV loan.

Frantz · 04-09-2018, 12:10 PM

When we refinanced our loan when interest rates were better we no longer owned property, only a UPS mail box. We found that the lenders required a physical address that was not a mail service or commercial address; yes, they check. We rented a room in a friends basement for 6 months for a few $$. Used that address and had the loan within hours.

Mr_D · 04-09-2018, 12:25 PM

Quote:

Originally Posted by spdracr39

Sounds to me they are trying to prime you for a ridiculously high interest rate because they are doing you a favor by finding the only financing that will take you. This is a typical line shop around for a loan. The dealer makes a ton of money on these "special circumstance" loans. Sometimes they even get part of the interest you pay. At the very least they get a sizable kickback. Your home has nothing to do with your rv financing except for the affect it has on your credit score. Your home is not collateral for an RV loan.

The amount paid each month also impacts the payment to income ratio, not just the credit score but is a part of both.

momdoc · 04-09-2018, 07:22 PM

We are running into a bit of hiccup with financing as we do not own a home in the US but rather are in our Motor home when in the US. We do have Florida driver's license, registered to vote in Florida (all through our mail service) but the home we own is in th e Dominican Republic so does not count. They want to finance us as "full timers" So we will see how that goes.
We did not have a problem with non full time status on insurance with our last rig and hopefully won't this time either.

rvethereyet · 04-10-2018, 07:01 PM

thanks for the help. I had never heard of that before. Blowing smoke, looking to make extra I am sure.

momdoc · 04-10-2018, 07:16 PM

Not owning a home is the big fly in the ointment at the moment. Seems having an expensive home outside of the US does not count. So no physical address is what is the problem. There are still some options out there. One company had a reasonable rate but the wanted $500 in fees which seemed a bit nuts to us.

The saga will continue tomorrow as the process is tiring us out tonight.