Can you buy an RV with bad credit?
Bad credit can arise for a number of reasons that are not really relevant to your current financial situation. You may find that your credit score is bad for one of the following reasons:
- Old debts, even if you have already paid them off
- Arrears in repayment of current or previous debts.
- Self-employment
- Too many current payments on debts
- Low credit rating
- Previous insolvencies
Fortunately for you, there are many lenders willing to take the risk of loaning you money to buy a mobile home, even if you have bad credit. In exchange for taking the risk, you often pay a much higher interest rate.
The great thing about mobile home loans is that they can be structured more like a mortgage than an auto loan, but without all the paperwork that comes with a mortgage. With a mobile home loan, you can spread your payments out over 20 years, so your rates are very low, with the majority of each payment going toward interest rather than building equity in the mobile home.
If you make a down payment, lenders may consider your loan application more favorably even with a poor credit rating. For mobile homes over $50,000, a down payment is usually (not always) a necessity.
How to buy a mobile home with bad credit
Start with your bank
If you’re looking to buy a mobile home with a bad credit score, you should get pre-approved for a loan before you buy one. If you have a good relationship with your bank or credit union, you should contact them first to discuss options. Each time a potential lender runs a credit check, your credit score drops a few points. Losing points in your credit score will not help you get a mobile home loan if you already have bad credit.
If you contact your bank first, they will know your current and past financial situation firsthand, and as an added bonus, you may not have to take a discount on your already shaky credit score.
Your mobile home dealer has mobile home financing solutions
RV dealers want to sell you an RV. RV dealers have a network of lenders they work with to sell RVs to people with different financial backgrounds. Each lender has its own tolerance level for buyers with poor credit.
National Vehicle: financing solution for private mobile home transactions.
Sometimes it pays to take a look at used RVs offered by private sellers. Doing so can often save you money on the price of a used RV, while helping to offset the initial cost of depreciation that begins as soon as you drive your new RV off the lot.
National Vehicle is a service that offers RVs for sale by owner. Similar to a dealership, National Vehicle assists in the sale of RVs and offers financing options for buyers.