Beginning RVer: Is this Scenario Doable?

[bsteinagel]

Hello,

I am just beginning my research process into RVing full-time. My plan is to live in Wisconsin half the year and in Arizona during the winter traveling between the two a couple times a year. I would like to purchase my RV after my lease is up in my apartment next year. My main concern is: will a bank or other financial institution give me a loan for a travel trailer without a permanent address? For those of you who RV full-time and don't have a permanently located home, how do you do it?

My parents said I could use their address as my permanent home, but my concern is that this may make them financially liable for the loan if something happens and I'm unable to make payment and I don't want to do that to them.

Thanks in advance for any light you can shed on this! I hope this is doable but am concerned I may be missing something here.

Brad

[bsteinagel]

Rice wrote:

bsteinagel wrote:
I am just beginning my research process into RVing full-time. My plan is to live in Wisconsin half the year and in Arizona during the winter traveling between the two a couple times a year.

This isn't related to your question about financing, but since it appears that you are young, you should be aware that in parts of Arizona, it can be tough for people under 55 to find a place to stay for extended periods.

In the Phoenix area, the vast majority of RV parks where people snowbird are age-restricted. Those parks are allowed (but not required) to let a limited number of under-55 people stay, but I would assume they're less likely to make an exception for someone who's 50 than someone who's 30.

In the whole Phoenix area, among the dozens (hundreds?) of private RV parks, there are only about five that aren't age restricted. I think the ratio is a little better in Tucson, but Tucson doesn't have all that many RV parks--certainly nothing like Phoenix. And some of the big ones are age-restricted.

State and regional parks are obviously open to anyone, but they generally have two-week limits, and weekends get reserved way in advance, so it's hard to rely on those without significant planning and reservations in advance. Plus they are usually electric-only, which will be less of a disadvantage if you have to leave after 14 days anyway, but still something to take into account.

And age is not an issue if you're planning to boondock on BLM land, but that presents a whole other slate of issues.

Just throwing that out there in case you're not aware of the possible challenges down there for someone who's under 55.

I'm 42 so this is good info. Thank you, Rice! Hopefully there are enough places out there that cater to younger people. Once I find a good campground my plan is to rent it out for the season and return every year so basically I'll be traveling between just a couple different spots every year.

[bsteinagel]

valhalla360 wrote:
Unless your parents co-sign or otherwise materially participate in the loan contract, there is no reason they could be liable for the loan (I assume you are an adult and not under any special guardianship to your parents).

The easiest would be to get the loan while you still have the apartment.

How will you be paying the loan? Will it include changing jobs? Is the income to payment ratios reasonable? It's quite reasonable for the bank to have questions if your financial situation is changing drastically and you are purchasing an item that can disappear or be destroyed in a heartbeat.

My thoughts exactly. I talked with my credit union last month about a travel trailer loan and one of the things they asked was how much I payed in rent, which affected my debt-to income ratio and they denied the application since the rent figure made it too high. But I wouldn't be paying rent if I got the trailer. I don't know if it's possible to use my apartment address and tell them I pay zero rent. That could look suspicious?

[bsteinagel]

RetiredRealtorRick wrote:
Surely you'll purchase it while you're still in your apartment (although very near the end of your lease) -- use that address.

Yes, but my credit union denied my loan application last month because they asked how much rent I paid and figured that into my debt-to-income ratio. That made my ratio too high and they denied the loan. I could re-apply and list my apartment address and rent as zero but that might look suspicious perhaps?

[pianotuna]

Grit dog,

My line of credit loan is 3.45%. I guess things are different in USA.

[Grit_dog]

bsteinagel wrote:
My main concern is: will a bank or other financial institution give me a loan for a travel trailer without a permanent address? For those of you who RV full-time and don't have a permanently located home, how do you do it?

What address do you use for your employer, or what address will you use?

As mentioned, this is about the least difficult of the logistics stuff. You already have a good address to use.
Trust me, noone really cares if it's "your" address, only that it is a valid address.
From about all aspects of life from loans, to money transfers to basically anything save for law enforcement (in some situations) and the irs. And even then, it's about being consistent and appearing to be within the expectations of whatever organization or agency you're dealing with.

[Trackrig]

Apply for the loan while still living at your current residence.

Bill

[Rice]

bsteinagel wrote:
I am just beginning my research process into RVing full-time. My plan is to live in Wisconsin half the year and in Arizona during the winter traveling between the two a couple times a year.

This isn't related to your question about financing, but since it appears that you are young, you should be aware that in parts of Arizona, it can be tough for people under 55 to find a place to stay for extended periods.

In the Phoenix area, the vast majority of RV parks where people snowbird are age-restricted. Those parks are allowed (but not required) to let a limited number of under-55 people stay, but I would assume they're less likely to make an exception for someone who's 50 than someone who's 30.

In the whole Phoenix area, among the dozens (hundreds?) of private RV parks, there are only about five that aren't age restricted. I think the ratio is a little better in Tucson, but Tucson doesn't have all that many RV parks--certainly nothing like Phoenix. And some of the big ones are age-restricted.

State and regional parks are obviously open to anyone, but they generally have two-week limits, and weekends get reserved way in advance, so it's hard to rely on those without significant planning and reservations in advance. Plus they are usually electric-only, which will be less of a disadvantage if you have to leave after 14 days anyway, but still something to take into account.

And age is not an issue if you're planning to boondock on BLM land, but that presents a whole other slate of issues.

Just throwing that out there in case you're not aware of the possible challenges down there for someone who's under 55.

[Grit_dog]

valhalla360 wrote:

JKJavelin wrote:
Wouldn't they just use the address that's on your driver's license?

Technically, you are supposed to keep your license address current.

Also, if there is a conflict between your address and you license, you could run into issues.

Of course, if you get the loan while you are in the apartment and it matches your license, there is no conflict and you aren't lying on the application.

It's OK not to highlight your situation but don't do anything that could be considered fraudulent.

Technically, you're correct on the DL matching residence.
And the only ones who would remotely care is law enforcement for vehicular infractions (from 25 years of moving state to state and even then I talked my way out of every "proper address" issue with LEO in a traffic stop).

Lenders, in the many loans, for all types of stuff, haven't ever given a rats arse about what state or address is on a valid ID as long as it's a valid ID.

But thanks for the supposition agian and some paranoia about fraud...

[Matt_Colie]

Brad,
Your situation begs that you look up Escapees. This is what they know about and are good at dealing with all the time. They can even provide a fixed address.
Matt

[Lwiddis]

"My parents said I could use their address as my permanent home, but my concern is that this may make them financially liable for the loan if something happens and I'm unable to make payment and I don't want to do that to them..."

Basic contract law...no, your parents won't have liability without signing something.

[Grit_dog]

pianotuna wrote:
Hi Brad,

Welcome to the forums.

How about setting up a line of credit loan?

That's a horrible option, interest wise, even if the guy can take a personal line of credit.

OP, yes you can get a loan if your qualified. Yes you can use just about any viable address, generally, in my experience.
No, the owners of the address you use will not be liable for any misgivings you may have unless that same person co-signs on your loan.

[valhalla360]

JKJavelin wrote:
Wouldn't they just use the address that's on your driver's license?

Technically, you are supposed to keep your license address current.

Also, if there is a conflict between your address and you license, you could run into issues.

Of course, if you get the loan while you are in the apartment and it matches your license, there is no conflict and you aren't lying on the application.

It's OK not to highlight your situation but don't do anything that could be considered fraudulent.

[JKJavelin]

Wouldn't they just use the address that's on your driver's license?

[valhalla360]

Unless your parents co-sign or otherwise materially participate in the loan contract, there is no reason they could be liable for the loan (I assume you are an adult and not under any special guardianship to your parents).

The easiest would be to get the loan while you still have the apartment.

How will you be paying the loan? Will it include changing jobs? Is the income to payment ratios reasonable? It's quite reasonable for the bank to have questions if your financial situation is changing drastically and you are purchasing an item that can disappear or be destroyed in a heartbeat.

[RetiredRealtorR]

Surely you'll purchase it while you're still in your apartment (although very near the end of your lease) -- use that address.