Getting An RV Loan ~ Best Options?

Anonymous · ‎12-03-2008

I'm living in the mountains of Eastern Oregon in a rural area and was recently turned down for a mortgage loan on a nice house due to not enough comparables of equal value and/or recently sold. I even tried two local lenders and they likewise turned me down. So now I'm considering alternative plans- buying a custom RV that is built like a mountain cabin. I found one I like for $56,800. The trick will be finding financing in today's tight credit markets. I have 40K to put down but that amount is needed to be split between buying the land and the RV. I haven't decided on the land yet. One place is avail for $52K and another about 60K each is 1acre. The land comes with all the utilities installed including well, septic and electricity.

My FICO scores are all 800+. So far what I've seen RV loans are collateral loans and seem to go for 9.25% for only 180 mos max, although BofA website says up to 20 yrs but no rate mentioned for this timespan. I'm wondering if it would be better to use my visa card plus my downpayment to buy the RV and then apply for a property loan or vice versa? I have zero debt currently. Any suggestions. Could a construction loan work for something like this since some construction may be done to permanently secure the RV to a foundation? Although I'd have lower property taxes if I don't permanently secure it. Anyone been in my shoes and have some advice? thanks

Anonymous · ‎12-04-2008

I know getting RV loan right now are very hard as they have been hit hard with repos (same as boats)....It seems like a bad choice as it will never appreciate like a home will, just depreciate like a car.

If you would quailfy for a construction loan, why not have ahouse built. Also, what do the local real estate agents tell you... There has to be a way to finance with 800 scores and 40K to put down.

Anonymous · ‎12-06-2008

you were turned down for a mortgage with 800 ficos, zero debt and 40k down? geez..how much was the house you were interested in?

Anonymous · ‎12-06-2008

@Anonymous wrote:
you were turned down for a mortgage with 800 ficos, zero debt and 40k down? geez..how much was the house you were interested in?

Hard to believe, but all true! The house was only $150K and appraised at $183K but the Credit Union underwriters would not approve it. They only told me it was based on the appraisal that the house did not meet their loan product requirements. Finally after sharing the appraisal with local lenders I was able to learn that Fannie Mae standards are now tightened on the "comparable values"- they cannot have excessive adjustments between comparables or the houses compared with are disqualified. It just so happens that where I want to live is rural mountains and only a few homes sell per year and they are not cookie cutter built so no two are enough alike to get approved by the big guns who sit behind their big desks and count beans all day long.

As far as construction loans go, in an ideal world that would be possible. But since Winter is rapidly approaching construction will be next to impossible for the next several months. And since I withdrew funds from my 401K to buy the house this year I will have to pay taxes this year and if I don't buy something quickly I will not even qualify for a tax deduction for all my efforts!