LNDOFOZ
Pennsylvania
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Joined: 03/10/2008
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My husband and I recently sold our home, yeah, anticipating full-time RV'ing. To our dismay, we have been unable to get financing for a Class A. The last try was for a Fleetwood Terra LX. The financed amount was approximately $61,000 with a monthly payment around $484.00. Even though we had a bankruptcy five years ago, my husband's FICO score is in the upper 700's. Mine is not so great but not that bad. Our monthly income is more than sufficient to accommodate a $700/month payment. We are really puzzled as to why lenders are being so up-tight. Is it because an RV loan is considered unsecured or because we don't have a home to use as collateral? Is it because of the mortgage mess? I have tried local lenders and even they are unable to help because of minimum loan amounts or astronimcal percentage rates (13%). Full-time RV'ing is a dream my husband and I have and hate to be defeated in this. At the moment we are living with a daughter, having eliminated all of our furniture, etc. The only thing we have left is the clothes we wear. And a dog and two cats. Living with my daughter is NOT FUN. The sooner we can resolve this the better. Should we continue trying for an RV or do we go back to buying a house? HELP. If anyone can give us ideas which direction to go anything will help. I have even tried some online RV lenders and they have turned us down because of the bankruptcy. The dealer we went to was also unsuccessful in getting us financing through their lenders. Is this a lost cause?
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trop-a-cal
Palm Coast Fl
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Joined: 09/24/2007
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Check your credit report. The mortgage may still be on it. The closing agent should have filed the satisfaction of mortgage with your county clerk and then sent you a copy showing the county stamp clearing you from mortgage. The credit bureau may need to see the paper work before they remove it from record, or show it paid. The only other thing may be the RV is over priced and you don't have enough equity in it. Keep trying as you should be getting about 4.99% interest. By the way the interest should drop more when the fed drops rates again the end of this month. Stop stressing out, you will prevail, just make the calls and get the details worked out.
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ccxnola
Wherever the rig is - I'm there too!!
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Joined: 07/02/2003
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Just a thought - look for something you can afford without a loan and save some back for future repairs. Our rig would be ideal, as it was a top-o-the-line model, but now it's 'old'. However, it still has all of the things one could want (except a slideout) and it's really a small apartment on wheels.
Shopping! DP, Mid-Entry, 1or2 slides
Former Prowd Owner of '88 Limited-'oldie', everything we needed!
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That's Me - Going Away!
Chassis by Deere-Drive by Ford-Coach by Fleetwood-Security by Smith&Wesson.
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RetiredbutWorking
Central Texas
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Joined: 02/10/2006
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I think you answered your own question, bankruptcy!
RBW
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Youngguy
PA
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Joined: 05/22/2007
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An RV isn't an unsecured loan. you are using the RV as collateral. Have you recently defaulted on anything? 60K isn't that much in the grander scheam of RVs. How about a down payment, are you putting anything down? i know my credit union won't go more than 80% Loan to Value (MSRP if new or NADA if used) on RV's. At any rate, I'd say it is still the bankruptcy that is holding you back. I don't know what your relationship is with your daughter. As a last resort perhaps she could buy it and finance it for you and you could make the payments to her. In order to keep your RV loan from effecting her borrowing power (think income to debt ratio) you could (on paper) pay rent to her for a room in her house. This should offset the debt with income. She MAY see some additional tax benifits by being a landlord AND having a 'second home', which would be your RV. Here again...i don't know what your situation is but there is always a way. BEST OF LUCK!
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Camping_in_AZ
Chandler, Arizona
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Joined: 11/21/2006
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Sorry, I don't think you are going to want to hear this, but you are going to have to wait until 10 years after a bankruptcy to get any significant financing. Otherwise, you will pay extremely high interest rates or have to put a huge amount down.
2008 Nissan Pathfinder SE 4x4 V8
2006 Airstream Bambi Safari 19' SE
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smkettner
Southern California
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Joined: 03/21/2005
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Capacity, Credit, Collateral, Character. Make high marks on all four and you should have no trouble. Maybe the RV purchase and loan should just be in DH's name but the bankruptcy will haunt you for several more years and possibly longer. I think often the easiest financing will be through the selling dealer but you should be prepared to put some money down. 50% or more down is not at all unreasonable under the circumstances. I am trying to assume you have some money from the sale of your home.
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Campfire Time
Wisconsin
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Joined: 07/20/2007
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"we had a bankruptcy five years ago"
"Is it because of the mortgage mess?"
You're problem is probably caused by a bit of both. A few years ago, a 5 year old bankruptcy with a good credit rating would have had lendors knocking on your door begging you to borrow from them. Today, I think they're all a bit gun shy. Way too many defaultling loans. They aren't as willing to accept the risk.
"Is this a lost cause?"
No. You may have to work harder at it though. Someone suggested checking your credit report. Thats an excellent suggestion. Look for anything that could be causing lenders to give you the cold shoulder, missed payment, open accounts that should have been closed, etc. I'm guessing, but I think there is a very good possibility that something "old" is still showing up. Do the followup work and get those items cleaned up, then write a follow up letter and have it included in your credit report.
I wish you the best!
Chuck D.
'03 Jayco Kiwi 17a, '03 Chevy Trailblazer EXT, Garmin Nuvi 200 GPS
Photography is my obsession: http://coldwater.smugmug.com/
“Adventure is just bad planning.” - Roald Amundsen
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69RoadRunner
VA
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Joined: 01/18/2008
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Don't they have to explain why you were declined? If you recently sold your home, I assume you got some money out of it. Make sure you're putting enough money down.
Creditors are tightening the standards. I was recently looking at buying a condo at Ocean City, MD. The one I liked best was in a "condotel" where the first 5 floors were a hotel and the rest were condos.
This building is the easiest to rent in all of Ocean City, MD. Without even checking our credit scores, we found only 1 lender who would consider financing a condotel. They required 25% down and a 7.9% interest rate. You could have a perfect credit score and $3 million in your checking account and those were the terms.
That bankruptcy is going to kill you, but keep looking. Just remember that every time a lender checks your credit score, your score will go down.
09 Newmar Ventana 3942
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LNDOFOZ
Pennsylvania
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Joined: 03/10/2008
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Thank's for your answers. Yes, all lenders have been informed of the sale and copies sent of letters of satisfaction. My husband's FICO score is high 700's. So that's really good after a bankruptcy. We are putting more than 20% down. My daughter isn't in a position to help. In fact, we are helping her by paying "rent." The consensus seems to be bankruptcy. However, it didn't affect us getting a home equity loan so there seems to be a double standard.
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