I thought I'd post this to possibly help someone out, trying to do the same thing. First let me say I don't need advice on how to accomplish it as I know there are things I can do and what they are. Second I presume others have probably accomplished this, but I'm quite surprised at the whole process.We went to a dealer and were looking at High end Motorhomes and he asked if we'd be trading ours in I said no we'd be selling it. He told us we'd have to sell it first as Banks won't finance a 2nd RV. I'm thinking not me I've had nothing but rubber stamp my whole lifeon very large purchases. We found a coach that we wanted with a private owner he'd bought it driven to California to visit MIL and bought a Vaca Home and now wanted to sell it. Very good deal. We decided to go with a particular person for financing cause he was going to do some other stuff for us. Well it's been a week now and nothing except him coming back with questions from the bank. It appears that they don't like to loan money to people on a 2nd RV or 2nd boat. Can have a boat financed and buy an RV or vice a versa but they don't like the second of either. Haven't been denied yet but I never even considered it'd be an issue. Our situation; high net worth to debt ratio we owe $30k on a $75k value RV and $1000 on a $21,000 car that's it credit cards paid off monthly, own a very nice high value home(no mortgage, and have a very high credit score and can easily afford both and have the assets to pay cash but would have tax ramifications if we did. Plus we're putting 50% down. There are NO OTHER ISSUES other than the 2nd RV issue.I doesn't make sense at all to me and won't to anybody who has done any financing of stuff through the years.Again not looking for advice but just passing info on.

Lots of people own multiple properties, boats etc. I myself own 2 Rv's. Find another bank/lender.

I have found that banks often have rules that try to cover every situation and no one seems to have the authority to look at the specific conditions and then make a decision to deviate from the rule, even if logic dictates differently.When we purchased our current house (20 years ago) the bank told me I needed a construction loan because the house wasn't 100% completed. I didn't want a construction loan because the rates were higher than the fixed rates at the time. They kept telling me I would need the construction loan to get additional cash to finish the house, although I had more than sufficient cash in savings and I was doing the work myself. This went on for months and I even tried different banks with the same results. In the end I was forced into a construction loan and a year later when the construction loan expired I rolled it into the fix rate mortgage that I originally wanted. Unfortunately for me, the fixed rates had gone up over that year (maybe that was their end game all along). The house still wasn't finished at that time and I never borrowed any additional funds, but I found it so frustrating that despite the fact the bank representative agreed with me, no one could make the decision to allow the use of a conventional mortgage. FWIW, I had excellent credit with no outstanding debt and in the end I paid off the 30 year mortgage in about 10 years. Maybe you can find another bank or possibly a credit union that is more flexible, but I remember in my case no one could make the decision. Good luck.Lou05 Travel Supreme Envoy

I have two RVs and have not had an issue. I paid them off too but it was simpler to get financing and get out the door then sell some stock at the right price and pay it off.

Financing shouldn't be a problem with 50% down. Find a different lender!

We have to deal with banks and their requirements all the time. Ever since the financial crisis banks have gotten absolutely ridiculous in their requests. Today's banking market is just plain stupid and it may not be quite as simple as finding another lender many banks have the same nonsensical regulations.

Financing A 2nd Motorhome | Good Sam Community

tatest
Explorer II
Sep 08, 2013
The issue is really that you don't have the borrowing record, and a motorhome (or any other vehicle) is really poor security. Your situation sounds much like mine. Assets to earnings, assets to debts high, no real consumer borrowing in the past 10-15 years, lenders don't have much to go on. Hate to liquidate pre-tax assets because I'll have to pay taxes on them.

You can almost always get a loan, it becomes a matter of how much interest you are willing to pay, and what you can put up, other than what you are buying, for security.

Solution is to borrow against those good assets (real property, insurance cash value, retirement savings). Mortgage on your home would be lower interest than vehicle loan because the security is better. Loan against insurance or retirement savings may be lower interest, and you will be paying interest to yourself.

Or else you can continue shopping on a poorly secured loan, sooner or later you'll find a lender who will come up with an interest rate high enough to cover the risk. Interest vs risk scale is almost limitless, I've had to try to rescue borrowers caught at more tha 100% per year with their collections of small short term unsecured loans.
charles
Explorer
Sep 08, 2013
I was self employed all my adult life, my tax returns and w2 forms were good enough for any bank I ever dealt with, never had a loan request turned down.

Nick
Executive45
Explorer III
Sep 07, 2013
bigdogger wrote:
One of the biggest things is going to be income. If you are self employed, or retired, it will be much more difficult to get a loan. Most self employed people have a very hard time proving their income. Assets really don't matter, because there is no way the lending institution can touch those short of forcing the borrower into bankruptcy, which is virtually impossible on a personal loan. Net worth is very easy to fake. Verifiable income is not. High net worth individuals borrowing money for toys is a red flag to lenders, especially when they already have a similar toy. They aren't picking on you personally, the banks just have to justify their loans much more thoroughly now. A loan from a bank today have to pass through their internal credit scoring, pass muster with their internal credit review committee, and not raise any alarms with the federal auditors. A second RV will definitely raise a red flag and the suspicion will be it is a straw purchase (purchase made by you for another person who is not qualified to buy it themselves) or a purchase of an asset prior to a foreclosure or repossession (see it all the time with cars and homes, people look to buy a new one right before defaulting on the other, especially when they are way upside down).
bigdogger
Explorer II
Sep 06, 2013
One of the biggest things is going to be income. If you are self employed, or retired, it will be much more difficult to get a loan. Most self employed people have a very hard time proving their income. Assets really don't matter, because there is no way the lending institution can touch those short of forcing the borrower into bankruptcy, which is virtually impossible on a personal loan. Net worth is very easy to fake. Verifiable income is not. High net worth individuals borrowing money for toys is a red flag to lenders, especially when they already have a similar toy. They aren't picking on you personally, the banks just have to justify their loans much more thoroughly now. A loan from a bank today have to pass through their internal credit scoring, pass muster with their internal credit review committee, and not raise any alarms with the federal auditors. A second RV will definitely raise a red flag and the suspicion will be it is a straw purchase (purchase made by you for another person who is not qualified to buy it themselves) or a purchase of an asset prior to a foreclosure or repossession (see it all the time with cars and homes, people look to buy a new one right before defaulting on the other, especially when they are way upside down).
peaches_cream
Explorer
Sep 06, 2013
The 1st requirement to borrow money from a bank is "prove to us you don't need it". If you can do that we will "consider" your application. I had a bank refuse to loan me $50,000 on a 1 yr. note and I had over $200,000 in the bank. Problem was, money in IRA which cannot be used as collateral after the 1st 12 month and it was in a account quaranteed at 5% interest for 5 yrs. If I pulled the money I would have to pay taxes on it and I could find no place to invest the difference at that Interest. So I just passed on the purchase.
tropical36
Explorer
Sep 06, 2013
ricklord2001 wrote:
I thought I'd post this to possibly help someone out, trying to do the same thing. First let me say I don't need advice on how to accomplish it as I know there are things I can do and what they are.
Second I presume others have probably accomplished this, but I'm quite surprised at the whole process.
We went to a dealer and were looking at High end Motorhomes and he asked if we'd be trading ours in I said no we'd be selling it. He told us we'd have to sell it first as Banks won't finance a 2nd RV. I'm thinking not me I've had nothing but rubber stamp my whole life
on very large purchases. We found a coach that we wanted with a private owner he'd bought it driven to California to visit MIL and bought a Vaca Home and now wanted to sell it. Very good deal. We decided to go with a particular person for financing cause he was going to do some other stuff for us. Well it's been a week now and nothing except him coming back with questions from the bank. It appears that they don't like to loan money to people on a 2nd RV or 2nd boat. Can have a boat financed and buy an RV or vice a versa but they don't like the second of either. Haven't been denied yet but I never even considered it'd be an issue.
Our situation; high net worth to debt ratio we owe $30k on a $75k value RV and $1000 on a $21,000 car that's it credit cards paid off monthly, own a very nice high value home(no mortgage, and have a very high credit score and can easily afford both and have the assets to pay cash but would have tax ramifications if we did. Plus we're putting 50% down. There are NO OTHER ISSUES other than the 2nd RV issue.
I doesn't make sense at all to me and won't to anybody who has done any financing of stuff through the years.
Again not looking for advice but just passing info on.

I've never given much credit to banks for knowing who and not to loan money to for anything. Just glad, I don't have much use for them anymore. My father has a story of how a bank refused to lend him money for building his own house in the old days and wanted to see the completed house first. Like he said, if I can get the house up and completed, then why would I then need you? Maybe they meant to steal or borrow from a loan shark and then come to see them for the long term, eh?
ricklord2001
Explorer
Sep 06, 2013
Yes I could do a lot of things but at the first of the year I will have the cash to purchase outright without the tax liabilities.
I have no doubt I can get it done just don't want to go through multiple steps to do. If this coach is available I'll buy it then or try to wheel and deal on another.
My point was to just kind of give others a heads up that it might not be as easy as one might think.
msmith1199
Explorer II
Sep 06, 2013
Although I haven't heard of this issue with RV's, it is probably related to the housing market and resulted from what is called, "Buy and Bail." In the housing market there were many people who became upside down in their homes when the bubble burst, but they had not lost their jobs and still had good credit and could afford the house payments. So what they would do is go out and buy second homes and move into them, and then just bailout on the first house and let it get foreclosed on. So the banks came up with rules to try and prevent this. My guess is the same thing has happened in the motorhome market.

In your situation, why wouldn't you just take an equity loan on the house and buy your second motorhome? I know some people don't want to risk the house, but in your financial condition as you described doesn't sound like that's an issue and you can get a better mortgage rate on a house versus a used motorhome.
randallb
Explorer
Sep 06, 2013
I understand the banks reluctance. How many worn out and abused RVs do you think they ended up with after the crash. They are not going to put themselves in that situation again. They fully understand that they are operating in the exact same manner as they did prior to 08/09 and the same situation will present it self again. They will not find them selves holding the bag on any thing they can not turn a profit on once they create another bust.
Randy
wnytaxman
Explorer
Sep 06, 2013
We have to deal with banks and their requirements all the time. Ever since the financial crisis banks have gotten absolutely ridiculous in their requests. Today's banking market is just plain stupid and it may not be quite as simple as finding another lender many banks have the same nonsensical regulations.

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