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Author Topic: Question about first purchase for full time  (Read 3033 times)

mixologist

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Question about first purchase for full time
« on: November 03, 2015, 05:19:18 PM »
Recently I was told that if I sell my house first and then buy an RV for fulltiming it is unlikely to get financing do to lack of a permanent address.

Has anyone had this issue?

Gary RV_Wizard

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Re: Question about first purchase for full time
« Reply #1 on: November 03, 2015, 05:34:45 PM »
I've heard other reports of it, though not many.  Best to arrange the financing first, if you can. Banking regulations specify some extra hoops for the lender to jump through if there is no fixed address for the collateral, e.g. a requirement for an escrow account. For that reason, some (many?) RV lendors simply decline to  make loans in that case. But if you apply for the loan while you still have a fixed address, and don't volunteer any info about "going fulltime", it is very unlikely the question will ever arise.
Gary
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Gary Brinck
Summers: Black Mountain, NC
Home: Ocala National Forest, FL

donn

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Re: Question about first purchase for full time
« Reply #2 on: November 03, 2015, 05:58:31 PM »
For full timing you really do not want to carry any debt. Pay cash or buy only what you can pay cash for.

Kim (skyking4ar2) Bertram

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Re: Question about first purchase for full time
« Reply #3 on: November 03, 2015, 06:13:11 PM »
We are now in our sixth year of fulltiming and I'll split the difference on the previous responses - our first coach was acquired while we still owned a home, no problems, and we took the loan interest off our taxes, along with the conventional home interest. Totally legal. However, the concept of living in the coach full time, although we did because our home was leased out, was never discussed with anyone.

Our second coach was acquired after we sold that home, and we had several potential loan suitors who could not get the concept of us not at a residential street address.  We subsequently financed the coach with our bank of many years without further ado. My banker, however, knew exactly what we were doing because she knew our situation but it was never pointedly discussed.

Since 9-11, and as a result of some interesting banking events, it has become very important to some people to know exactly where you are to be found should they come looking. We have had no issues as Escapees with permanent mailing address in Texas, ever.

The debate over debt and what you should or should not finance is extremely personal and not any of our business, and full timing has no bearing on what you decide to do with your money. Different situations demand different solutions.

My advice is to work with your lender, you cannot predict what will happen after the loan is made (maybe you full time, maybe not) and he does not really care. If you meet the underwriting criteria on the day of the loan, that's the best the banker can hope for.

Do your homework, evaluate your options, and proceed with the best plan you can make! Best of luck!

Kim

Kim & Christi Bertram
SKP 106183
FMCA 420913
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2012 Thor Damon Tuscany 42RQ
2014 Jeep Grand Cherokee Diesel
Wanderlust RV Park, Eureka Springs, AR

Wi1dBill

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Re: Question about first purchase for full time
« Reply #4 on: November 03, 2015, 10:03:48 PM »
When we purchased our rig, we financed it since I was getting a better return on my money then the bank was charging.  They did asked to make sure that it wasn't our full time unit nor were we planning to do it while it was financed.  Check your loan paper work and you'll find a cause that states, if you use the financed unit for full time living, the loan balance is immediate due in full.

The thought that you don't need to tell the finance company that you're going full time would be FRUAD!

I do think that there are companies that will finance full-timers.  Not totally sure, Good Sam's, which uses GMAC, I think will finance full-timers.  We have friends that had their MH, I think through them.  I know for a fact, that they had it financed as they were in an accident and totaled their motorhome. Since the also had it insured through the same people.  They got a brand new MH and payments stayed the same. This was about 6 years ago, so I can't be totally sure I recall all the facts. 
Most of the local RV dealers tend to keep their financing through a local bank so they can bump the rate a little and get paid to do the paperwork. Since most of their sales are to the weekenders, the dealer goes where he gets the best deal. In the car business the finance man/women can make more profit on the vehicle than the salesman/woman. Tend to believe that RV dealer make good bucks in financing also.  You'll know this if there is a prepayment cause in the contract.


 Wi1dBi11

Kim (skyking4ar2) Bertram

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Re: Question about first purchase for full time
« Reply #5 on: November 04, 2015, 08:58:18 AM »

The thought that you don't need to tell the finance company that you're going full time would be FRUAD!

 Wi1dBi11

It would only be fraud if they asked you the question. In this case, it is simply not full disclosure.
Kim & Christi Bertram
SKP 106183
FMCA 420913
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2012 Thor Damon Tuscany 42RQ
2014 Jeep Grand Cherokee Diesel
Wanderlust RV Park, Eureka Springs, AR

Wi1dBill

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Re: Question about first purchase for full time
« Reply #6 on: November 04, 2015, 08:38:10 PM »
It would only be fraud if they asked you the question. In this case, it is simply not full disclosure.

Check it fine print in the contract concerning full-time use. Like PERGO....it's in there!  Go full-time, loan become due in full immediately.   How would they know, change of address, red flags up, especially if changed to an out of state address.

Again, if you knowingly do this it still fraud period.   If you read my post they did ask point blank if we intended to full-time. 

Wi1dBi11

 

Kim (skyking4ar2) Bertram

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Re: Question about first purchase for full time
« Reply #7 on: November 04, 2015, 09:32:57 PM »
I actually did read your post. My comment was only about your definition of fraud and I stand by it.

My loan agreement has no such clause and I would never have signed it if it did. Every loan agreement is unique and they should be read carefully.

Our situations are entirely different.

Kim
Kim & Christi Bertram
SKP 106183
FMCA 420913
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2012 Thor Damon Tuscany 42RQ
2014 Jeep Grand Cherokee Diesel
Wanderlust RV Park, Eureka Springs, AR

mixologist

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Re: Question about first purchase for full time
« Reply #8 on: November 05, 2015, 11:11:08 AM »
Thanks for all this info and I take it all to heart.  I will never attempt to commit fraud but I also will never offer more than is asked.  Thanks again all.

JudyJB

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Re: Question about first purchase for full time
« Reply #9 on: November 10, 2015, 11:36:37 PM »
I bought my motorhome while I had my home.  I used the same credit union where I had been a member for 30 years.  They asked no questions about the use at all.  In fact, the contract just said I agreed to pay back the money, very similar to a car loan.  And hard to believe, but my credit union does NOT sell mortgage or car loan contracts!! 

And I insured it with a full-timers policy through what was then GMAC but is now National General, and no problems whatsoever.   

You can always use the dealer's financing, but talk to your current bank or credit union as well.
Full-timing for over five years in a
2012 Fleetwood Tioga Ranger 31N

mixologist

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Re: Question about first purchase for full time
« Reply #10 on: November 12, 2015, 09:09:12 AM »
Thank you JudyJB.  I received a good amount of info here that gives me food for thought.  Thanks again all.

MN Blue Skies

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Re: Question about first purchase for full time
« Reply #11 on: November 12, 2015, 06:38:56 PM »
But if you apply for the loan while you still have a fixed address, and don't volunteer any info about "going fulltime", it is very unlikely the question will ever arise.

As a retired loan officer of a major bank, my advice is to be upfront with your lender.  If you read the fine print in your loan application and the loan docs you will probably find a clause that says you have disclosed everything to the lender. 

There is probably a solution.  If I can help, please PM me. 
« Last Edit: November 12, 2015, 06:55:08 PM by MN Blue Skies »
A girl called Max, her husband Eric, Princess Kitty, and Molly the Service Dog in training.

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mixologist

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Re: Question about first purchase for full time
« Reply #12 on: November 12, 2015, 08:22:43 PM »
Thanks Blue Skies.  I spoke with a lender that stated because I have a good credit score and borrowing under a 100K I can do so with a PO box.  Thanks to all for the advice.

MN Blue Skies

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Re: Question about first purchase for full time
« Reply #13 on: November 12, 2015, 08:56:20 PM »
As with any transaction make sure you read and understand the application and docs you are signing. 

Loan apps and docs are dry and boring and no one likes to read them.  With our recent foreclosure crisis too many people didn't understand what they were signing.  As a lender I often had people say "I don't need to read anything, I trust you."  I was flattered but I always tried to made sure my clients fully understood what they were signing.  You can always have the lender email you the docs before you sign them so that you have time to review the paperwork and so that you don't feel pressured.

Best wishes with your purchase and your transition to full time RVing. 
« Last Edit: November 13, 2015, 08:25:24 AM by MN Blue Skies »
A girl called Max, her husband Eric, Princess Kitty, and Molly the Service Dog in training.

2013 Cougar High Country 315 RES ( A 35' 5th Wheel)
"Big Blue" 2012 RAM 3500 Big Horn (Cummins Diesel 1 ton)

mixologist

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Re: Question about first purchase for full time
« Reply #14 on: November 15, 2015, 11:54:36 AM »
Thanks for the advice Blue Skies.  I may contact you with questions as I get closer.

 

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