Sell House to Buy 5ver and Truck

[FloridaKash]

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?

[Roy_Lynne]

If I were to sell my house and buy an RV, I really think I would try to make it a cash transaction and only spend what I made on the house. I drove cross country and let me tell you, I bet I saw a million RVs for sale everywhere, I think its a buyers market out there especially if someone had cash. LOL, I asked for a brochure for a new B+ and I've had a couple phone calls and dozens of emails from as far away as Florida hawking their wares. I would never buy a new rig cause its just not a smart investment.
I don't know if your new to RVing or have been in it for awhile but that is another issue. If your new to the game, one RV might look perfect for you and then turn out to have issues for a full-timers. We bought our first "forever" class A and it lasted about 2 year before we decided we needed a C, So we traded in our A for a "forever" C and now we are looking at B's. If this is your first RV, don't buy new but look for slightly used RV from others who sold their home to get a new RV and that lasted about 5,000 miles before:
Mom hated being away from grandchildren
Dad got health issues
Both thought full-timing would be wonderful and then found out they really hated it, and it got old after awhile.

I don't know your circumstances but I've been reading post on this board for nearly 10 years. Rving for most of us is great, but there are probably tons who have left RVing and hated it as much as we love it.

All I'm saying is baby steps

[4x4ord]

If your going to pay the rig off once you sell your house anyway, why not sell your house and then pay cash for the rig? By the time the house sells the rv your looking at will be old stock and its sale price will drop 15%, you will know exactly how much money you have to work with and you can often negotiate your best deal on an rv or vehicle when there is no financing involved.

[FloridaKash]

I am the OP - Thanks everyone for the replies. I will be working on the road making a good full-time income.

We have thought about using a relatives address and most likely will so certain mail can be delivered there (their address is not in Florida). Other mail that we actually need to receive will be sent to a mail forwarding service. Thank goodness most bills are now sent online... makes life so much easier.

We want to sell the house to put toward the rig so that payments will be essentially eliminated. I do not view a house as an asset, but as a liability. There's a lot of maintenance to go into a house, especially one that was built in 1979, in Florida where part of it has a flat roof. Hell, $6,000 a year of house payments goes towards taxes and insurance. Yes, of course I know that a rig is a depreciating asset. But with the money saved per month on mortgage, insurance, taxes and maintenance vs the monthly cost of the RV, I can invest the balance. Also, since I will be making the same full-time income as I do today I find it advantageous to have a reduced cost of living while being able to travel. This decision is being based on a lifestyle choice, not an attempt to build wealth. I am young and have seen too many people my age or older always have a dream and never do it because their health fails them or******happens. I know three men who have had heart attacks in their 30's and are now limited with their mobility.

I think what we're going to do is secure a loan on the rig, sell the house and then use the funds to pay most or all of it off. I want to get the best rate that I can and from what I have been told, living at a residence less than year can cause the rate to be higher. So I need to use the address of the house we are currently in.

Thanks,
FloridaKash

[Bumpyroad]

most/all leasing ads I have seen on TV require a deposit up front. the higher the deposit, the lower the lease payments. if they have a do not tow restriction that would be no go. and 100% for business. at least in his old age he won't have to worry about housing since the feds will provide that, with bars.
bumpy

[4x4ord]

Bumpyroad wrote:

4x4ord wrote:

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?

Sell your house, pay cash for the 5ver and lease a tow vehicle. Although this might be terrible advice it may be a solution to your question.

don't leases usually have a no tow requirement? would leasing be cheaper than a very low %% vehicle loan? and you usually have to cough up some cash to lease?
bumpy

I have never leased. There are a couple of things I know about leasing that seem significant for some people. 1st ...rather than come up with a down payment as in the case of a vehicle loan, you have a buy out at the end of the lease term. 2nd ....if the vehicle will be used for work, 100% of the lease payments can be written off vs dishing out 100% of the cash to buy the vehicle up front and writing off the depreciation each year for years to come.

[Bumpyroad]

4x4ord wrote:

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?

Sell your house, pay cash for the 5ver and lease a tow vehicle. Although this might be terrible advice it may be a solution to your question.

don't leases usually have a no tow requirement? would leasing be cheaper than a very low %% vehicle loan? and you usually have to cough up some cash to lease?
bumpy

[4x4ord]

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?

Sell your house, pay cash for the 5ver and lease a tow vehicle. Although this might be terrible advice it may be a solution to your question.

[rockhillmanor]

FloridaKash wrote:
....Gotta love how 20% of the people that responded seem to know all about my financials based on a couple of sentences....sell the house so we can use it for a large down payment :R

Has nothing to do with what or what not YOUR financials are. It's called PLANNING for your retirement and/or full timing so that selling your house nets you "living on the road" expenses not just the purchase of the RV.

Most do not go 'into' deep debt to go full timing.

[mchero]

BarbaraOK wrote:
There are a lot of reasons not to use all of your funds to purchase the RV, especially if the funds are in tax deferred accounts and you can easily afford the payments while the funds are making more money than the interest on the loan and doing so tax free.

Second there are several firms that loan to fulltimers. You might want to join Escapees and ask the question there, as several people on the Escapees forums have recently taken out loans from different firms without having a S&B address.

Barb

BINGO! Go over to the Escapees form and start asking questions!

[Cummins12V98]

I am around a lot retired people every winter in the Palm Springs area. It amazes me how many are constantly crying the blues about their RV payment and how they can't afford to do this or that. I'm talking inexpensive things.

Does not sound like too much fun to me. Have your finances in order THEN retire.

[TXiceman]

The way to approach the full time life is to buy the RV and truck and have them paid off. Take the money from the house and invest it for when you may want to come off the road.

If the only way you can afford the RV, is to buy what you can afford.

ken

[kakampers]

We've been fulltime for 9 years...have bought three new units in that time and NEVER had a issue obtaining financing. We just bought a new unit in December of 2012. We have an address in SD through our mail forwarding service. That is the address we give and we never mention we are fulltimers...only supply the necessary info...

[rseymour21]

To address the issue you raised in your post. It's moot by now.. OP is gone.

Don't you hate that! Its like a hit and run!

[Aridon]

Well qualified buyers can get loans for just about anything and at the best rates. The salesman is incorrect.

Just make sure you understand that when you buy one of these things:

Short of it burning down to the ground or getting totaled in a storm (very unlikely) while having it insured it is a money pit. Not so much for maintenance but more the deprecation.

When you start out FT most people have grandiose ideas of how they will travel the country for ever and what not. Just realize most of us probably stay in place more than we travel. Everyone is different but for the most part you will find that you will travel a lot the first year or 3 and sit more as you've seen more.

Buy quality.

You are essentially renting when living in an RV. Expect to have nothing in the end. Make your financial arrangements accordingly.

Living in a RV FT is just like living in a home. Just smaller. If you have a good relationship with your spouse this is not a big deal. If you don't then any issues you have will quickly come to the surface.