Sell House to Buy 5ver and Truck

By the time I got to page 3 I had to go back and look to see what the original question was...and most did not answer it. I can not answer it, or should not, because I have no knowledge on the subject.

But now I know where to come for financial advice. Reminds me of the TV " News " shows taking an e-mail question and some expert giving advice with only a speck of info. What the 20% really missed in there advice is this...I can be debt free and have no income or little income. Having assets does not mean you will be ok unless you have an income stream to go with it. Look at all the movie stars etc. that have a 5 million dollar house they paid cash for and now they are broke cause they have no income. Saw it many times in 30 years of lending, people with net worth and no income...it takes both.

My advice is to not give financial advice without facts.

BTW none of this info is intended as advice to the OP, cause they did not give info on which to advise and they did not ask for financial advice.

Pangaea Ron wrote:


I hope that you have considered all of the issues with full-timing. You are purchasing a depreciating asset and selling an appreciating asset. It will be hard to get back into the market if it does not work out for you.

Don't get me wrong, if you want to full-time. . . do it., but have a back-up plan. Perhaps have a financial guy look at your plan, and future options.

the best post yet.
bumpy

ChopperBill wrote:

DownTheAvenue wrote:
Sounds like you do not have enough money to afford the RV.

Bingo!
And what are you going to do a few years down the road and you are either to old, sick or just tired of full timing? Your truck and RV is going to depreciate faster than anything you can think off. Where would you go, where would you stay. Need a BIG back up plan.

I hope that you have considered all of the issues with full-timing. You are purchasing a depreciating asset and selling an appreciating asset. It will be hard to get back into the market if it does not work out for you.

Don't get me wrong, if you want to full-time. . . do it., but have a back-up plan. Perhaps have a financial guy look at your plan, and future options.

FloridaKash wrote:
We were at the RV lot and was sharing our plans to go full time. The thing is, we want to sell the house so we can use it for a large down payment on a 5ver and a TV. The salesperson said that you cannot get an RV Loan if you do not have a primary residence.

What's the solution?

Change your bills to a family or friend's house and use that address.

Might want to read a book called "The Truth about the RV Life" before going (on Amazon, and I have no affiliation). It sets out the ups and downs to expect and makes sure you consider everything before selling your house.

FloridaKash wrote:

dahkota wrote:
Get the loans now, sell the house, use the funds to pay one or both of the loans (make sure there is no early pay off penalty), or a large portion of each. I would definitely pay off the truck first, as the interest is not deductible.

Thanks, this is the route we think we're going to go. Seems to make the most sense and is the most direct solution.

Gotta love how 20% of the people that responded seem to know all about my financials based on a couple of sentences. :R

Lots of armchair professionals here. Not to put an end to your thread, but it's not always the most positive group of people. JMHO

IMHO if you full time you should be debt free.

Interest is deductible some of you guys are as picky well I guess I will be Christian and not say it. You need an address to get a loan not a PO Box. That can be accomplished with some of the mail forwarding services which give you an address. You might use a relatives address as your own. When you fulltime your rv is your home. If you own a home and own a rv that is self contained and use it a certain amount of days per year the interest would be deductible the same as a vacation home.

Had a couple at the campground we winter in last year, it was in south Texas. They are already full timing Wanted to buy anew fifth wheel. They found when they gave the campground as an address, they could not get a loan. They were trying to figure out how to get around it.
Will see them again this year, can't wait to see what they figured out. We are full timing too 3rd year now. Bought a new camper last year. But we were fortunate enough to be able to pay cash, so didn't have the problem.
Good luck there has to be ways around it. But weigh the consequences of what you do for later!

Bumpyroad wrote:

retispcsi wrote:
The payments are deductible the same as a mortgage loan. Educate yourself before you buy. .

payments or interest deductible?
bumpy

The entire payment is not tax deductible, unless you have a really good accountant and it is owned by a business.

The interest is tax deductible for any "Second home" be it a boat, RV or stick built home. All it needs is a toilet and kitchen to be considered by the IRS as a second home.

That said, if you already have a primary mortgage, and say a cabin in the woods, then the RV would be the 'third home' and interest on one of those home loans is not tax deductible. You could still pay off one of the loans and then two of them would be deductible.

Check with a accountant, as increasing your primary home loan beyond what you paid for it - might not be able to deduct all the interest. Say you have a situation where you bought the house before 1980 for say $125,000 and now it is worth $500,000. If you had a maximum loan value around $175,000 in a certain year, that is the maximum that you can borrow and deduct all interest costs. If you borrow say 200,000 and you only paid $125,000 for it, then only interest on the $125,000 is deductible, while the remaining is not. You would need to figure out how much of that interest is not tax deductible. Again, ask a accountant.

AS to the original post. You "Could" take out a loan on your home, however load origination fees, appraisals, ect can make that a expensive option. Starting a car or RV loan is not expensive at all, perhaps only cost $50 credit check, and normally the dealership pays for that too.

I would get a loan on both vehicles, and then sell the home. As a home owner, normally you will get a better rate. You do not have to tell them that you plan on moving into the RV - it is none of their business. You really are not 'sure' that you will sell your house at this point anyway, so why tell them? The loan is based on your credit rating, nothing else.

It is against Federal Law to have a pre-payment penalty on any type of loan. So you can pay off the higher interest rate loan at any time. Say you get a really good deal on a truck at near 0% interest, you would not want to pay off that loan, but might pay off the 7% interest RV loan instead.

Fred.