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How to get a RV loan?


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On 6/9/2021 at 5:10 AM, palmeris said:

For those that have sold S&B to purchase an RV I am curious if not having the collateral asset of the S&B had any negative impact on the loan process?  By selling the S&B first does that impact the prospect of obtaining a loan and you now have to use proceeds to pay for the RV?

Would it be better / easier to obtain a loan for the RV first, then sell the S&B ?

If you sold your sticks and bricks you should not need a loan for an rv

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1 hour ago, Danandfreda said:

If you sold your sticks and bricks you should not need a loan for an rv

You assume that the house that was sold had been owned for decades and so resulted in large amount of funds from the sale.   That isn’t necessarily true.   Some of us moved around quite a bit during our working years, moving every 4-5 years, so never made huge amounts off of each house.   
 

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4 hours ago, Barbaraok said:

You assume that the house that was sold had been owned for decades and so resulted in large amount of funds from the sale.   That isn’t necessarily true.   Some of us moved around quite a bit during our working years, moving every 4-5 years, so never made huge amounts off of each house.   
 

And it is also possible that palmeris is one of the younger folks who will be working from the road, making a living as he travels and possibly even raising a family. As Escapade is nearing the end, I can tell you that 20 - 25% of the people attending this year are are not retired and many of them travel with families. I would suspect that the attendees here, while a relatively small portion of total membership, is a pretty representative share of the total membership of Escapees. For years the largest groups attending were the Solos, later outnumbered by the Boomers, but this year the X-scaperrs and Full-time Families groups are similar in size and I suspect that it won't be long before the become the largest groups. While I have no way of knowing for sure, I highly suspect that most of the younger working folks probably have an RV loan.

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On 7/22/2021 at 1:40 AM, Danandfreda said:

If you sold your sticks and bricks you should not need a loan for an rv

Thank you for the response , however I think that is a flawed assumption as there is no data regarding the hypothetical profit /loss of the S&B sale, or the amount of an RV loan.

The questions of mine were more geared toward the collateral asset aspect of a S&B vs amount of proceeds from the sale of it ,and any respective impacts of being able to qualify or obtain an RV loan, preferably based on expieriences of those that had gone through the process.

Is it better to have a collateral asset or cash reserves in the eye of the lender is really what I was curious about and would think that would be valuable information to anyone contemplating selling a S&B and buying an RV. 

 

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1 hour ago, palmeris said:

Is it better to have a collateral asset or cash reserves in the eye of the lender is really what I was curious about and would think that would be valuable information to anyone contemplating selling a S&B and buying an RV. 

I agree that you are asking a very different question than some answers. While my information is dated, I do know from experience that it used to be that most lenders would give a lower interest rate to one who owned real estate, even it that property was mortgaged. But my experience was well before the current low interest rates. In addition, it is still true that if you own real property that has a large enough equity that you can borrow against it tos buy the RV, that will certainly get you a lower loan rate. As my wife, the former loan officer is quick to point out, should the loan go into default, real property is always there to foreclose on, while an RV is often difficult to locate and very expensive to recover, thus it will always have a higher interest rate. 

The cash reserves or investment accounts will influence a credit rating, but that impact is less today that it once was as most lenders go primarily by credit scores and less by the loan officer's intuition than used to be the case. As my wife says, credit scoring has taken the human aspect out of the lending business and so requires less skill and experience by the loan officer, and depersonalizes the customers. If you were to somehow use those reserves as security for a loan, then it would get a better interest rate. I know someone who borrowed against an annuity to finance his RV and thus got a much lower interest rate, but that also locked up the annuity for the duration of the loan.

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Kirk,

 Very good information there from your wife regarding the rates and consequence of default when pledging collateral to secure a loan. I also believe the days where  the personal relationship with the local bank loan officer accounting for something in the decision are no longer in todays push button, instant gratification society.

Interest rates aside and with all things being equal such as, income, debit ratios, etc. I wonder what accounts for a higher score / more acceptable risk to the lender...a non mortgaged S&B with $$$ appraised value or a cash reserve of the same $$$ value AND only using the RV as the collateral to secure the loan?

 

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