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When choosing your motorhome financing source, it's important to
understand the terms used by the financing companies when evaluating your
merit as a potential loan customer. The following information outlines some
of the most basic criteria normally used.
Credit history
Prior to your approval to finance a new or used motorhome, your lender will
check your credit on one or more of the three major credit bureaus. You may
wish to obtain a copy of your credit report and check it for accuracy before
applying for a loan.
Reviewing your credit report
allows you to expose mistakes or
misinformation on your report that you can correct before applying for a
loan.
The three main credit
reporting agencies are:
Experian (800-397-3742)
Trans Union (800-888-4213)
Equifax (800-685-1111)
You can obtain a copy of your credit
history by contacting these companies, however a fee is charged for their
services.
FICO scores
Fair Isaac and Company developed what is known as a FICO score to determine
the probability that consumers will pay their loan payments in a timely
manor. FICO is an abbreviation for the above mentioned company. These scores
are a universal means of placing an evaluation on your credit worthiness.
Your FICO score is indicated by a number
that can be evaluated by lenders when deciding whether or not to approve
your loan. This number can reflect your time on the job, timely or late
payments, length of credit history, amounts of previous loans as well as
time of residency and time on your job. It can also show damaging factors
such as bankruptcies, collections and charge-offs.
How can Best Rate Help?
Our financing programs are designed to compete with and even exceed the
programs available through your local bank, savings and loan,
finance company, credit union or motorhome dealer. Our wealth of national
lenders offer the most competitive rates for your loan.
We check the rates of each of our lenders daily, and research
each of their loan programs.
RV dealerships can also
provide lending assistance as well as additional services such as extended
service contracts. In most every case, our rates on motorhome loans will be
lower that the dealer is willing to offer. Our rates on extended warranties
are normally much lower as well.
Our loans are
normally approved within a day or two after your application is received.
Refinancing is also available.
Which type of program is best for you?
When choosing a lender for a motorhome financing program, you should select
a loan program that will work best for you. Our loans programs are available at both fixed and variable rates. A fixed
rate will remain the same for the duration of your term, while variable
rates will fluctuate with the as interest rates rise
and fall.
Normally our lenders require a minimum
of 10% - 15% down payment. On loans over $100,000 we can provide terms of up
to 20 years. On loans from $50,000 to $99,999 we can provide terms up to 15
years.
Our loans normally feature no prepayment
penalties. You do not want to be locked into
your loan for a extensive amount of
time. This is an important factor to consider. We also
charge no points or processing fees when processing your loan.
Since most motorhome owners have a traditionally
low delinquency rate, your payment schedules and terms are normally more
flexible than with other types of borrowers.
Motorhome financing interest may be tax
deductible.
Here's another reason you should consider financing your
RV. Did you know that interest paid on the majority of RV loans is tax
deductible as home mortgage interest?
To qualify, the Internal Revenue Service
(IRS) has ruled that:
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The RV Must be used as security for the
loan.
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The RV must have basic sleeping,
cooking, and toilet facilities
Nearly all RV types - motorhomes, travel trailers, truck
campers and many folding camping trailers - are equipped with these
facilities.*
So enjoy the benefits of RV travel and get a tax
advantage too!
*An RV with full facilities can qualify as a
"dwelling unit" under the IRS code section 280A(f)(1). The U.S.
tax court case of Haberkorn v. Commissioner. 75 T.C. 259 (Nov.
12, 1980 filed) gives further guidance on the tax deductibility of RVs.
Taxpayers may not claim the interest from more than two qualified homes on
their tax returns. Ask your tax adviser for more information.
The description qualifies virtually every type of
recreational vehicle on the market today! Even pop-up campers can qualify
under this description. All you would need is a simple stove and porta-potty.
The Internal
Revenue Service (IRS) publishes two booklets that contain helpful
information regarding tax deductibility of RV loan interest.
Copies of “Publication 936-Home Interest Deduction” and
“Publication 523 — Selling Your Home” are available online or by
calling the IRS at (800) 829-3676.
Complete our
On-Line
Application
Now!
Call Toll Free
888-998-8003
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