My wife and I are currently fulltime rv'ers and will continue to be for at least the next year. We are thinking about purchasing a Class A motorhome in the 100k to 150k price range. We also plan on purchasing a home (our first) in 0ne to two years. Financially it is well with in our means, but we were wondering if anyone knew if having a large rv payment (and owing a lot) would hurt us when we go to take out a mortgage on a home. Now, having enough money to make monthly payments is not an issue for us, we just want to know if owing that much will HURT us in the eyes of a mortgage lender. Thanks for any input.
I could be completely wrong, but my understanding is that lenders look at your credit rating, your monthly income and your monthly "out-going". They have a certain percentage of you monthly income that they consider allowable for debt. As long as your credit score is good - no late payments, no default, and your debt isn't too high, I wouldn't think you would have a problem. Again, this is my understanding of the financial world and could be way off base. Hopefully there is someone on here who has more expert knowledge and can help you more.
Easyrider: I am a retired ex-banker and I would recommend you wait and buy your motorhome after you buy your house. Approval of a mortgage loan is based on your FICO (Fair, Issac & Co.) credit score, your track record in handling past debts, your income (combined), the ratio of your debt to your income, the interest rate on the home and how that affects your payments (usually, a monthly home loan payment should not exceed 28% of your monthly income), other short term and long term installment debt you might have, almony, and a whole bunch of other things. On the other hand, financing a motorhome is a much easier task. Like a car, you can finance a larger percentage and the interest rate can be adjusted based on your credit rating. You stand a good chance of getting both approved, if you have good credit, and you go for the home first, and the motorhome second. Good luck.
Easyrider, I was in the rv business for many years and I would second what Beastdriver has said. The home mortgage needs to be closed first then purchase the motorhome. The motorhome loans are not that hard to get with good credit.
See, I knew you would get some expert advice. Folks on this site are very helpful. Hope you enjoy and stick with us.
I appreciate the advice. Our credit is excellent and I have no worries about that. The problem that we have is that we travel now (we are travel nurses) and our current travel trailer is just a little tight for us anymore. We wanted to expand to a larger class A for more living space and basically to get more enjoyment out of our travels. The thing is that when we decide to stop traveling and buy a home and hopefully start a family we will no longer need the class A. So, my question then would be if it would be better for us to just continue on in our travel trailer or move up to the class A. Would a lender take in to account the fact that it is a living expense rather than a "luxury". I know it would be better to wait until after the home is purchased, but at that point the class A would no longer be necessary. Any input would be greatly appreciated. Thanks again for replying to my post.
One more trick you may look at is a used class A gas unit to hold down high cost and save some money. Used units cost less and in couple years down the road you could sell it and get some of your money back. This would get you out of the travel trailer and give you more room to live in. The other post are correct on way banks look at your track record.
If the mortgage lender is the bank, it will usually estimate your credit report, monthly bank salary/income, or credit card repayment and so on. If the credit report is good (which will include the credit card repayment, the other financial platform lending), that's is OK on the condition that your monthly bank salary can be more than twice the amount of monthly repayment. The bank will lend the money to you if you can pay it monthly on time. It's better to ask for the professional lending agency.
In case you didn't notice, you just responded to a thread that is 12 years old. I wouldn't expect to get any replies from the original participants.
