We are purchasing a new MH in May. We would like to finance the purchase to preserve invested funds. Our choices: 1) home equity line credit (potential for increase in rate over time)2) commercial motorhome loan (fixed rate)Now that we are retired, our 'income' is much lower than that documented on previous tax returns. We have heard that it is hard (impossible) for retired people to get MH loans, irrespective of net worth. The loan granting process seems to be driven by income. We don't want to start filling out applications/disclosing personal financial information without some insight. Any thoughts, suggestions, or ideas would be helpful. Any companies to recommend? Thanks !

Good Sam and others default to Essex Credit, so you might skip the middle men and go directly to them. They also appear to have the lowest rates....3.99% at the moment. Easiest, by far is the home equity loan, but you're risking financing a depreciating asset with your home...depends on how comfortable you are with that....to me, it doesn't matter as I've never defaulted on an obligation and there's no reason to start now. Rather than fill out countless applications on line, which, BTW, will affect your FICO score, I'd call an agent and talk directly with them telling them your concerns. Most competent agents will be able to tell you whether you're in the ball park with your financial information. Once you feel you're close, then start the verification portion of the application. Pull your credit report NOW along with your FICO score. This will allow you to have an intelligent conversation with the agent....good luck....Dennis

First choice would be a fixed loan on the motor home. See what the dealer can do. Second choice would be the Home Equity Loan. Usual wisdom is to not roll a motor home loan into your house. If something goes awry, you could lose your house.

OP here.No dealer - factory direct.

If you are very well positioned I would be OK with the HELOC.With good equity you could later refi any mortgage with the HELOC for a fixed rate.Home rates are so low right now that you may as well go for it.Just be careful that the loan is not going to be around longer than the RV.Easy borrowed money makes it easy to overspend....

Are your funds set up so that you can loan the money to yourself, so that you pay back the interest to yourself? E.G. I can still choose to borrow from my 401K, rather than take distributions.Not that it makes much difference once we are retired. Every cent going to pay principle and interest on the loan ultimately comes out of my retirement savings and their earnings, and all the depreciation represents principle lost forever. Sort of keeps me from buying things I don't really need, even if I want them and know I can afford them.

Financing question | Good Sam Community

_en_Plain_Air_
Explorer
Feb 10, 2015
OP here.
No dealer - factory direct.
DSDP_Don
Explorer
Feb 10, 2015
First choice would be a fixed loan on the motor home. See what the dealer can do.

Second choice would be the Home Equity Loan. Usual wisdom is to not roll a motor home loan into your house. If something goes awry, you could lose your house.
Executive45
Explorer III
Feb 10, 2015
Good Sam and others default to Essex Credit, so you might skip the middle men and go directly to them. They also appear to have the lowest rates....3.99% at the moment. Easiest, by far is the home equity loan, but you're risking financing a depreciating asset with your home...depends on how comfortable you are with that....to me, it doesn't matter as I've never defaulted on an obligation and there's no reason to start now.

Rather than fill out countless applications on line, which, BTW, will affect your FICO score, I'd call an agent and talk directly with them telling them your concerns. Most competent agents will be able to tell you whether you're in the ball park with your financial information. Once you feel you're close, then start the verification portion of the application. Pull your credit report NOW along with your FICO score. This will allow you to have an intelligent conversation with the agent....good luck....Dennis

Forum Discussion

Financing question

About RV Newbies

Related Content

Travel Trailer Buying/Financing Questions

Financing

Motorhome financing

Financing

RV Financing & Full-Timers Question