wapiticountry wrote:
Small loans are likely to viewed more as a nuisance than an opportunity. It costs the lender the same amount of money to process a $20,000 loan as it does a $200,000 one. Therefore the actual costs of $20,000 loans are ten times higher than $200,000 ones from the lender's point of view. If I was underwriting an RV loan, I would be very concerned that someone wanted to get a 15 year loan on such a low balance. It would raise a red flag that the borrower had cash flow issues.
Not really.
Take into consideration that banks use the property that you are buying as collateral. Collateral assures the bank that if you default on the loan that they WILL take ownership of the property and resale it to get the loan paid.
Homes on average gain value over time provided you do upkeep.
RVs even with up keep lose value over time, banks are less interested in a asset which loses value..
They are taking chances with RVs and the longer the note, the better chance that if you default they are stuck with a unwanted RV that they will have a difficult time reselling and most likely result in loss of banks money..
Short loan terms under 12yrs on depreciating assets banks will not bat an eye at.
