Good Sam Club Open Roads Forum: How to get a loan for RV
Open Roads Forum Already a member? Login here.   If not, Register Today!  |  Help

Newest  |  Active  |  Popular  |  RVing FAQ Forum Rules  |  Forum Posting Help and Support  |  Contact  

Search:   Advanced Search

Search only in Beginning RVing

Open Roads Forum  >  Beginning RVing

 > How to get a loan for RV

Reply to Topic  |  Subscribe  |  Print Topic  |  Post New Topic  | 
Page of 7  
Prev  |  Next
toedtoes

California

Senior Member

Joined: 05/17/2014

View Profile



Good Sam RV Club Member

Offline
Posted: 04/08/21 01:46pm Link  |  Quote  |  Print  |  Notify Moderator

et cetera wrote:

toedtoes wrote:

On another thread, you indicated you wanted to buy a 5 acre lot to put the RV on and live. If that's the case, I don't understand why you wouldn't just buy a small house or condo. If you decide to leave the area in 3-5 years, you can sell it. Meanwhile you have a place to live that is not going to get you in another custody battle.

It just sounds like you are putting so much time and effort into trying to make an unconventional lifestyle work for a short time frame.

Why not just be conventional until your son turns 18 and then jump into the unconventional with no barriers? At that time, you can sell the house, buy an RV and go anywhere.


The bank (banks and CU) deny the loan at every point for any amount so buying anything is not an option. At this point anyway. If I can't get a 20 or 40K RV loan, how can I get a 500K loan for a house here? Or, to put it another way, I am way more likely to get a 40K RV loan than a house loan that's 10-15 times as much.

I am likely stuck in DC area for a few more years. Just moving place to place.


Actually that is not true. There are programs out there specifically for first time home buyers with little to no credit histories.

FHA, credit unions and online or smaller lenders are potential sources. And they will look at alternative sources to show worthiness. Getting a record of your rent payment history can help too.


1975 American Clipper RV with Dodge 360 (photo in profile)
1998 American Clipper Fold n Roll Folding Trailer
Both born in Morgan Hill, CA to Irv Perch (Daddy of the Aristocrat trailers)

wapiticountry

Mountain West

Senior Member

Joined: 10/02/2011

View Profile



Good Sam RV Club Member

Offline
Posted: 04/08/21 01:51pm Link  |  Quote  |  Print  |  Notify Moderator

klutchdust wrote:

Lwiddis wrote:

Start with your local credit union. Try your bank if you have dealt with them for a while. If buying from a dealer, have them carry the ball on this issue.


Dealer loans cost more. The dealer gets a percentage of that rate then the lender gets the rest, that's what I was told.
The guy is much more concerned with getting a loan than saving a quarter of a point on a rate. Fact is, however, banks have found that having a dealer originate and close a loan is cheaper than doing it themselves, so a rate at the dealer may actually be lower than in person at that same bank.

wapiticountry

Mountain West

Senior Member

Joined: 10/02/2011

View Profile



Good Sam RV Club Member

Offline
Posted: 04/08/21 02:00pm Link  |  Quote  |  Print  |  Notify Moderator

et cetera wrote:

Quote:


Ex-banker here. You are not going to get a loan at any conventional bank or financial institution. Your credit scores are too low and your credit history too limited, you have no residential stability and are looking at purchasing an item with very limited collateral value. If you are capable of making a large down payment, a dealership might have a lender that would make an exception. If you have very strong employment stability, maybe, just maybe, a credit union affiliated with your line of work would take a chance. While your story is sad and sadly familiar to many, it makes you a very poor credit risk. Lenders have no way of knowing, and you have no way of proving, that your ten years of bad luck and problems has or will end.
My suggestion is make an application at a couple of dealerships and see for yourself what is going to happen. The dealership has every incentive to get you approved. If they can't make it happen, and you don't have an inside track at a credit union or a relative who is a bank executive you will need to pivot to another plan, and that is not the end of the world.
One other note. You say you are a high income earner with no debt, if that is the case why couldn't you buckle down and save up enough for an inexpensive rV in a matter of a few months.


I understand the points you are making. My income fluctuates between 120-140K based on the project which is not at all unusual in the DC area. I could put away 2-3K/month meaning in a year I should have something accumulated for a purchase but it's long and painful. The problem with that route, I have to live somewhere during that time and apartments and all housing, whether buying or renting is insanely expensive, a decent apartment is close to 2 grand. Which makes saving that much harder.

An RV purchase under unfavorable terms with a high interest rate is a lot better than blowing 20K/year on rent. I spent 100K on rent in the last 5 years. About 150K in rent in the last 10 years. This makes no sense whatsoever. I could not buy a house because at the time my ex had full custody and I feared that she would relocate far away, to another part of the state or even another state, meaning I would have gotten stuck with a useless house. In retrospect, I should have brought something 10 or 20 years ago, but oh well.

Doing it yourself without a bank is long and painful. I could be happy with something like an old heavy-duty Suburban puling an old 30' TT. It's not exactly what I want but 80% of what I want. But both combined would cost at least 20K, maybe 30K so it's a year or two of painful saving. Hard to save money in in the DC area even with high income.

I think everyone successful here lives on dual incomes. One goes towards real estate, another towards everything else. 100K doesn't mean beans here.

I have a Tahoe now with the 5.3L, I realize it is a very limited TV but maybe I could get something uber-compact and light, a 19' TT I can pull. And make it do for a year or two. I should upgrade the Tahoe to a Suburban, ideally heavy duty with the 6.0L engine but they are so much more expensive than the base version.
Something isn't adding up. You make $10,000 to $12,000 per month, have no debt and can't save more than $2000 a month? You also say you could rent for $20K a year, which would only be $1667.00 a month out of your $10K income. Unless you are neglecting in revealing a mountain of other debts, your problems aren't rent or lack of credit, it's that you have no idea as to what your actual income and expenses are.

et cetera

South-East

Senior Member

Joined: 12/26/2002

View Profile


Offline
Posted: 04/08/21 02:37pm Link  |  Quote  |  Print  |  Notify Moderator

Never mind net vs gross income..

I don't have any other debt but I do spend a significant amount on charity.

toedtoes

California

Senior Member

Joined: 05/17/2014

View Profile



Good Sam RV Club Member

Offline
Posted: 04/08/21 03:01pm Link  |  Quote  |  Print  |  Notify Moderator

I agree. This whole thing is a bit off. He wants to finance a class C for $40-$50k, buy a 5 acre plot of land and set it up for a permanent base for the RV, and wants to ensure custody of his kid.

Yet, he doesn't mention how he will pay for this land or set up electrical/sewer/etc on it - which will be more expensive than the RV AND an additional cost to the RV.

He prefers a class C motorhome but will set it up on the land for permanent use because he doesn't think he can afford a 5th wheel. Yet he wants a class C based on a truck chassis so it's easy to work on the engine - how often is there stuff to do to the engine if it's just sitting there?

He doesn't want to rent because it's "lost money" yet he doesn't see that buying a $50k motorhome and parking it for 3-5 years is lost money also. He'd do better to buy a $20k TT for those years then sell it off and buy a new RV for when he goes on the road.

He doesn't want to buy a home because he has decided he can't get a loan. Yet he hasn't actually talked to anyone about getting a loan - either for a house or for land or for an RV.

He doesn't want to put aside money per month while renting to be able to buy a TT and TV for $30k cash because it's "painful", yet he sees to problem with paying $50k in financing and paying for the land on top of that.

wapiticountry

Mountain West

Senior Member

Joined: 10/02/2011

View Profile



Good Sam RV Club Member

Offline
Posted: 04/08/21 03:05pm Link  |  Quote  |  Print  |  Notify Moderator

et cetera wrote:

Never mind net vs gross income..

I don't have any other debt but I do spend a significant amount on charity.
And the train has officially left the tracks.

toedtoes

California

Senior Member

Joined: 05/17/2014

View Profile



Good Sam RV Club Member

Offline
Posted: 04/08/21 03:09pm Link  |  Quote  |  Print  |  Notify Moderator

et cetera wrote:

Never mind net vs gross income..

I don't have any other debt but I do spend a significant amount on charity.


Then cut your charity donations until you have saved up the money.

I'm sorry, but this is sounding like the start to a bad horror movie:

Guy divorces wife and fights for custody of boy for 10 years, now has custody of kid and wants to buy 5 acres of land where he "won't be seen by any neighbors", and buy an RV to supposedly live on that land until the kid is an adult, but talks about moving every year. And he spends a significant amount of money on charity so he can't comfortably
pay for any of this out of his $120-140k salary..

capacitor

California

Full Member

Joined: 10/24/2020

View Profile


Offline
Posted: 04/08/21 04:03pm Link  |  Quote  |  Print  |  Notify Moderator

This is strange! Buy your 5 acres, set up utilities, and get a single wide or double wide delivered and put money into YOUR equity. You don't need an engine to park it and a B is a van while a C is a bigger van. Neither of those would be a good place to raise a 10 year old.

mich800

Pontiac, MI

Senior Member

Joined: 05/30/2004

View Profile



Posted: 04/08/21 07:47pm Link  |  Quote  |  Print  |  Notify Moderator

et cetera wrote:


So now I have a high income, poor credit and no debt load and no credit history. If the banks will give me a 10K loan, I will take that. Maybe I can buy a compact TT. 40K would be better however. I have spent 100K on rent in the last 5 years so it can't be worse than that. My 1980's Airstream was a money pit but not even in the same dimension.
Even buying an 80K RV at a dealership will put me in a better financial situation that renting for the next 4 years. At least I will have an RV at the end of it.



You don't have poor credit unless there is something in your file you are not disclosing. A thin credit profile does not equal poor credit. If you are a high income individual you should be working with your current bank, they know your spending and income habits.

As far as your credit score you say you cannot get. It should have been provided in the disclosures for all the loans you were declined. Each declined app should be accompanied by a letter stating exactly why they declined your request.

There is something that is not adding up that all the financial institutions can see but is eluding your analysis. You need to get a copy of your free credit report from all three reporting agencies. You may need to request it in writing if your challenge questions are messed up. They are free to obtain here

doxiemom11

Victoria TX

Senior Member

Joined: 01/09/2013

View Profile



Good Sam RV Club Member

Offline
Posted: 04/08/21 10:42pm Link  |  Quote  |  Print  |  Notify Moderator

We had great luck with our credit union. Banks didn't want to loan the smaller amount we needed. Most were 50,000+ on motorhomes.

Reply to Topic  |  Subscribe  |  Print Topic  |  Post New Topic  | 
Page of 7  
Prev  |  Next

Open Roads Forum  >  Beginning RVing

 > How to get a loan for RV
Search:   Advanced Search

Search only in Beginning RVing


New posts No new posts
Closed, new posts Closed, no new posts
Moved, new posts Moved, no new posts

Adjust text size:




© 2021 CWI, Inc. © 2021 Good Sam Enterprises, LLC. All Rights Reserved.