What is up with "Park Model" homes?

[jeshoffstall]

My wife and I continue to camp at the same CG over and over and had considered getting a seasonal site there to save the hassle of dragging the camper 3 hrs each way on weekends.

The owner of the CG is a dealer for a manufacturer of Park Homes that are constructed of logs and look very much like a small cabin.

Not only can we not find anyone that wants to finance the purchase (USAA recinded my pre-approval after finding out it as a park model), no one wants to insure these things.

Is there some negative bias in the industry about Park models?

Thanks!
Jack

[crabbin_cabin]

Our dealer hooked us up with a credit union that financed our Park model - reasonable rate (IIRC - since paid off) and still have a car loan with the same CU. PM if you need info.
John

[az_dweller]

Hello!  I read your note about finding a Credit Union to finance your Park Model RV.  Would you be willing to share than information with me?  I sent you a Private Message.

[way2roll]

This post is 10 years old and they haven't been on here since. You might want to pose your questions in a new topic.

[tatest]

A park model is not really a RV, and it is not a "stick and brick" permanent home. It even falls a bit short of "mobile home" because it is not usually built to Federal standards for permanent-occupation manufactured housing, rather to RVIA standards if any.

Park model is something the RV industry has tried to put into a gap between "RV" and permanent housing, leaving the housing code authorities to try to figure out whether it is one or the other, and leaving a consumer in the lurch. Some communities have figured out where they want to put it, for code purposes, but that does not always fit mortgage or insurance standards.

Kind of like building a three wheel car that does not have to meet automobile safety standards because it is a motorcycle, then trying to say it does not have to meet motorcycle licensing standards because it is a car. Buyer beware.

[SDcampowneroper]

research your state definitions of Rv, Park Model, Mobile home. Under federal accepted guidelines, a park model RV is a vin identified unit, licensible for highway use, the same as an any other road worthy unit, annually licensable, insurable, as such.
If you modify the PMRV , to such a condition as to make it appear to, or to be immobile, then local authority having jurisdiction may have propriety in classifying it as a mobile home or real property.
This is a hot topic with the National Association of RV parks and Campgrounds, aka ARVC, working to establish uniform rules governing these units.

[Geocritter]

I have a good friend who owns a mobile home park in Texas. He's been hurting since they changed the lending requirements on mobile homes several years ago. He's been staying in business by filling his empty spaces with rentals. It's a shame because his park is beautiful.

Steve

PS I think one of the killers for lenders is the shoddy materials manufacturers use in mobile homes. The floors for instance are invariably made of either particle or wafer board. Great material until it gets wet and the glue dissolves. In Texas moisture from the ground will condense on the underside of the floor eventually causing the floor to fail. Of course the manufacturer won't warranty against water damage.

[jeshoffstall]

Was just told the same thing by Good Sam Finance Center "Unfortunately we do not finance Park Models. Thanks".

Guess we will keep the TT and go seasonal.

Thanks,
Jack

[bigdogger]

They are a much higher risk. Lenders will look at them with about the same enthusiasm as they do single-wide mobile homes. Most often they are on rented ground, with all sorts of things built onto them. Things like decks, skirting, patios and the like. Often the wheels and axles are removed. All those things make them impossible to repossess. On top of that, to take one off of a rented site, they will have to pay all the back site rental. We once had a division that financed mobile homes. Our general policy was if the loan failed, it was best to just write off the loan, send the people the title and a 1099 for the amount that was written off. Much cheaper than hiring a company to go and move the mobile home and then find someone who could sell it for anything more than a few thousand dollars. Most often the cost of moving exceeded the value. You can sell a trailer to anyone since they can drive in, hook it up and drive it home. A park model, no way.
I am sure there is a lender out there that thinks they can re-invent the wheel who will finance them, but it won't be a line most lenders will get into.

[Vet_Man]

I had to insure mine as I would a house. Seems I had to put liability on it because Campground was not libel for injury on the site or my deck and stairs.

[Deb_and_Ed_M]

This seems crazy. If I were a lender, I would rather loan money on something that I could FIND to repossess (if you failed to make proper payments), rather than try to hunt down a wheeled RV that could be parked/hidden ANYWHERE.

Same with insurance - a park model isn't going to be involved in a vehicular accident or catch fire because the bearings burned out/went over a cliff because the brakes went out, etc etc

[jeshoffstall]

Cuffs054 wrote:
How a stick built, stationary thing is move of a risk than me pulling a large tin can through rush hour traffic escapes me.

Exactly my point with the boneheads at USAA. I asked the girl if I could use the funds to buy a 40' fifth wheel to pull around I-285 with my Tundra during rush hour?", She said "yep"

facepalm.

I wrote a very detailed email and was responded to by the head of RV lending - he confirms that they consider Park Models Mobile homes and are too high of a risk to loan on.

[Cuffs054]

Had one prior to TT. Liked it, may go back. Mine was financed through a local (near park, who knew the park). Insurance was a major PIA! Finally got it through some little agency. How a stick built, stationary thing is move of a risk than me pulling a large tin can through rush hour traffic escapes me.

[Bill___Kate]

I would think the dealer would be able to hook you up with both financing and insurance - there are thousands of those things around here, and I cannot believe they aren't financed and insured ....

[jeshoffstall]

USAA had pre-approved me for an "RV" loan at an attractive rate and term. I told the dealer I would purchase. I called USAA back to process the loan and the manufacturer/model/type was not in their drop down list. They did some digging and informed me that they classify Park Models as Mobile Homes and will not lend on them - but offered me a personal loan at 10%.

I contacted Progressive (current TT insurer), USAA (auto) and Allstate (home) and none of them wanted to ensure an RV that remained stationary!

We have given it up at this point, not meant to be. Will wait until we have the cash required to purchase outright.