>What interest rates could I expect to see financing $35,000 with a credit score of 675 and annual income of $64k? My DTI is 40% currently,

You can't afford an RV.

Expect high rates if you were even to be approved

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This. I doubt he’ll get approved but DTI of 40% looking to buy a $35k RV on that income -the op really shouldn’t be applying for the loan in the first place

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Banks are predatory. When I was making $30k I was approved for up to $35k of auto loan. Crazy that it’s even legal.

The insight is you are headed for financial disaster. I hope you'll educate yourself. Dave Ramsey's Money Makeover would be a good book for you and after your student loans are paid off, the book "Simple Path to Wealth" would be a great read. Those two books put into practice will change your life.

Sorry, but this. I would expect a rate in the low teens, if you even get approved. I'm assuming you're looking at a long term loan for the RV, as that's the only way it'd be remotely affordable. On a 15 year loan, at 12%, you're looking at a ~$450/mo payment. That would likely push you over 50% DTI. Not to mention you'd pay $40k in interest over the course of the loan.

My suggestion is to resist the impulse to buy, and wait until you're in a better financial position to purchase such a high dollar discretionary item. Sucks to hear, but financially is the best choice.

Auto loans fall under different loan requirements than an RV. RV is classed as a luxury item, higher rates and they look far more closely at DTI because the drop in values on RV is far higher than car - in other words banks don’t care about the cars because for the most part with a down payment they know they can sell the collateral easy. Not the case for the RV.

Banks definitely go higher than I am comfortable with on DTI and they can be predatory. But I also feel like people take so little responsibility in their own financial planning also. Case in point the OP has no business buying a RV. I would venture he probably isn’t contributing a lot to retirement either and I’d be curious about CC debt given a 675 score.

But that DTI includes his mortgage and student loans. I’m just trying to learn a bit here for my own interests, so I’m not trying to imply anything. As a consumer I had always been under the impression that longer term and lower interest rate debt isn’t looked at the same way as revolving consumer debt might be regarded? His outstanding debt should be 40% of his annual income of $64,000 or $25,600 in outstanding debt according to the information provided. I managed to get out of pharmacy school with around $160,000 in student loans and a brand new mortgage of $300,000, with an initial salary of only $60,000 per year (this was in the late 1990’s). So with that background I think this OP seems to be in a strong financial position compared to my reality back then. So there must be more factors considered by a lender than just income and DTI? I would love to understand this a bit better? Thank you

As someone who has just gotten an RV loan, interest rates are terrible right now. If I were you, I'd wait on the RV. Work on your credit score and lower your debt first.

Longer term for a house is fine. A 20 year loan for a depreciating asset like a motor home is a horrible decision. They’ll immediately be underwater and don’t currently have the cash flow to weather any bumps in the road.

Doesn't matter. He cannot afford the RV, with or without a loan.

Can I offer you an alternative to financing that can still leave you owning an RV? Don’t buy new. Don’t buy from a dealer at all. The markup is bad and the rates will be horrible and you probably won’t be approved anyway..

Coming from experience I will give you my advice. Buy a used RV. Facebook marketplace. Buy one that’s from the 2000-2010 year model used. You can get a decent RV between 5-10k and get something pretty good for 10-15k. You could save up for a year really good and get most of your payment then go to your bank and apply for a smaller personal loan for the remainder. Think under 5k for the loan. That way your interest rate is reasonable and you aren’t paying upwards of $400 a month, rather maybe like $150 a month. That’s exactly what I did on less income. You can do it, but it won’t be something you do tomorrow.

This kind of decision could leave you reeling in debt. There are other ways of getting what you want, but you may have to change your route to get there. Stop expecting that you are going to own a new RV and accept that used is your option here. Please I am urging you to consider this approach as you don’t have the financials to afford a loan the size you’re looking for, no offense whatsoever. I am in a similar position as you and I am on my 3rd RV!

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Lenders take a lot of different things into consideration. There’s the basics like income and DTI, but there is also your unsecured debt to income ratio (the ratio of total unsecured debt vs your annual income), net disposable income (amount of money you have left each month after all reported debts are paid. Time at your job, time within your job industry, length of time at your address, whether you rent or own your home. Also, lenders typically prefer your DTI be below 40% WITH new debts figured in. So if OP is already at 40%, he will be above that amount once the RV loan is figured in.

ETA: mortgage payments are viewed the same as any other installment payment. Student loans can sometimes be an exception, but are typically figured at 1% of the balance for monthly payment. The only debt that typically holds almost zero weight is medical debt.

Interest rates are not great at the moment and RVs depreciate quickly, is there no way you can do a soft pull somewhere to get a rough idea?

You may need to just take the hard pull to see where you’re really at. I doubt it highly that you need an RV bad enough to get a 10% loan, just rent one friend. You really don’t need to buy one.

Regarding the RV world: RV financing tends to have higher rates than auto loans. Be wary of RV dealer financing; see if you can join a good credit union that offers RV loans. Also be aware: The RV industry had a record year in 2021, but it looks like 2022 will close out well below last year's numbers. It also appears new RV pricing will remain pretty firm. However: I suspect a drop in used RV prices is coming, as many who jumped into RVing during Covid figure out that it isn't really what they want as pandemic concerns fade, and try to sell their units. Translation: Right now is a challenging time to buy a new RV, but opportunities for good deals on used RV's may show up in the next year or so.

> financing $35,000 with a credit score of 675 and annual income of $64k? My DTI is 40%

Dude, you can't afford to finance an RV. Go buy a tent.

This is the correct advice. Buy used. Let the massive depreciation work in your favor instead of hitting you in the teeth.

With a current Credit score of 675, 40% DTI and looking to add another 50% of annual salary worth of debt, the hard pull is the least of OP's worries.

1. Homes appreciate in value, whereas RVs depreciate. Home is a much safer loan for the bank.

2. Your initial salary may not have been great, but you just graduated with an advanced degree into a "safe" field with a good opportunity for higher income later.

3. Student debt is also treated much differently (and generally has lower monhtly payments over a longer period of time, so not an outsized effect on DTI)

4. For calculating DTI, usually only the minimum payments are calculated for the consumer debt. Not always the best metric.

I’ve had a few different RVs and going used is a good way to go. There are some really great deals and very well kept units out there. People buy them and realize it’s a lifestyle choice and don’t use them nearly as much as they think they will. There was a big jump in RV sales during the pandemic and some of the best used units in years are starting to appear on the market. The cost of campsites is pretty high right now so also make sure you understand the cost for the places you may want to go.

Just get a used one. New RV's are for people that have cash to burn. They depreciate so fast

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I am getting a used one.

I mean like 1990-2005 used where you can get a nice one for 5-10,000. I guess it depends what you are buying is it a hitch trailer, 5th wheel or a motorhome?

I went to get a quote on financing for a almost new rv. Almost shit my pants when they told me. Bought a used one for cash instead.

Thank you for replying in a civil manner and providing meaningful advise. I am looking at a 2005 Seabreeze Lx. I would never go near a dealer…they are predatory. I was aiming for an RV payment between 350-400, but based on my research it appeared to be closer to 475 with my current specs. Hence my question.

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My friend Combo has one for real cheap.

Agree with others that your situation looks a little tight for this purchase. Additionally, don't forget to allow for storage, maintenance, fuel, etc...these add up quickly. It honestly doesn't make sense for most people to buy versus rent an RV.

Source: Am RV owner.

RV FI manager here. You are looking close to 8-11% depending on down payment amount. Some lenders may be more competitive based but the actual structure of the deal and down payment will help you achieve better terms. Your DTI is high so make sure you include every single dollar you are paid on the application before any taxes, 401ks, health insurance, etc. The business manager at the store can help with loan placement terms as most dealership use national and local lenders and it’s their job to know loan programs to secure your deal with the most competitive terms.

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Just because you don’t like the advice doesn’t mean it’s not meaningful or civil

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Why are you going up and down this thread making multiple comments about what I may or may not be able to afford?

40% DTI is with the loan. Thanks.

I asked a specific question. I did not ask to be patronized with assumptions about poor financial management. Good day.

Also, I never said anything about a new RV. 🙂

You're going to finance a 17 year-old RV for $35,000 with a credit score for 679 and a DTI of 40%?

Please please don't...this is exactly how people financially spiral.

> Why are you going up and down this thread making multiple comments about what I may or may not be able to afford?

Because you posted here asking for the advice?

> 40% DTI is with the loan.

Oh, your situation has now changed from your original post that said "My DTI is 40% currently, counting my mortgage and my student loans" which notably excludes the RV. Not sure this update would change the advice, though.

> Thanks

You are welcome!

> patronized with assumptions about poor financial management.

Don't need to make assumptions. You provided the context.

> financing $35,000 with a credit score of 675 and annual income of $64k? My DTI is 40% currently

I got a loan for an RV at a credit union almost a year ago. Rv was about the same price I put down 33%ish. Got a 3.0% interest rate.

> The cost of campsites is pretty high right now so also make sure you understand the cost for the places you may want to go.

Ya, this is always shocking to me. Can literally get an airb&b or hotel room for the rates of a lot of sites these days.

I’ll be paying off the loan when I sell my home. But I need to know my estimated costs in the interim. I’ll also add, this is necessary because I pay for my mom’s living situation and she will need this when I have to move out of Florida.

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Car dealers right outside the military base selling Chargers to kids in boot camp at 25% interest...

And its a 17 year old RV to boot.

I thought this was a comedy post. No way you should be getting an RV that costs that much. No way you will get a good rate with that credit score. Rates are way too high right now to even consider this.

EDIT: corrected typo

Good lord. "Priced to move!". Got to jump on those ASAP, deals like that don't come along that often!

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You realize you are on a personal finance subreddit?

Go to a RV subreddit if you don’t to be told this is a bad financial decision.

Well, honestly, that’s why I am asking. But most people seem more keen on patronizing instead of giving an answer.

Interest rates are high right now. Known fact. I didn’t want to waste a hard pull to find out HOW high they are on RV loans for people with similar credit standing. Last year my mortgage got financed on 3.25 with exactly the same credit score and debt.

Now with the Fed hike, I was anticipating something like 10%-12% for RV loan. All in all, I won’t be paying on the loan more than a year or so. But I am also not getting a loan with some crazy 20% interest.

Disrespectful comments and personal attacks are not acceptable here. People are giving feedback based on the information you provided. If you don't agree with it that's fine but keep discussion civil or move on.

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Again - if you don't agree with what people are saying that's fine but there are plenty of ways you could respond with your input and keep it civil - using harsh language and insults is not acceptable. Do you agree to follow the rules going forward?

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Hardly a single person has yet to actually answer the question. The answer might be 15%, 20%, or “I don’t know” %. But the answer does not involve opinions on what is a good decision or making assumptions about my financial plans.

Can't your mom go into deep debt to get herself an RV instead of you? Where are you going to live when she takes the RV? If the debt isn't cleared that will make finding a new home even more difficult.

While echoing everyone else(you can't afford this, it's a financially stupid decision), if you are deadset on being stupid at least you are doing your shopping.

Check your local credit unions. I just spent the last month rate shopping for a used auto and found a local CU with surprisingly great rates for used autos and pretty decent rates for RV's depending on year of the RV, starting at 3.6% for <10yr old RV's and 6.9% for >10 year old.

Your credit score is going seriously hurt you, also your DTI likely implies long loan which usually means higher rate. You are basically in the worst position possible for RV shopping, at a shitty time to be RV shopping.

My credit union is currently offering 7.24% for a used RV rate, but you need to put at least 10% down and have a credit score of 730. So, I would guess they would still possibly do the loan, but maybe require more like 20% down and charge 12-14% APR with a lower credit score and a higher DTI ratio of 40%

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That settles it. Renting an RV when the kids get out of school this summer.

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Waiti wait wait. RVs can be financed out to 15 years. Op won’t admit it, but that’s what he/she will do…. Source: family owns an rv dealership and they see people that are bad with money do this all the time.

I bought a used on this year for 40k, 2013 winnebago.

My income was about 115k, with plenty of assets / liquid cash and I was given a 7.8% rate which was still astronomically high. I bought it with the knowledge i was going to renovate it, use it for the summer and sell it for a profit. I ended up paying 1k in tax with about $100 off the principal. I did opt for the longest term so that probably didnt help, but I would never buy an RV at those rates if I knew i wasnt going to flip it. I can only imagine theyve gotten worse since March.

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There should be a DMZ within 20 miles of the perimeter of any military base. Car dealers and insurance salesmen should be banned in the area.

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I thought maybe with that income they were planning on living in the RVz

From what I gathered, OP is buying her mom an RV to live in because OP is getting kicked out of florida and is selling her house, but instead of providing additional context like a normal person, threw a hissy fit because forums don't act like vending machines for questions

I suppose we owe her a refund on all the money she spent on the free advice.

If you own your home you should just get a HELOC and buy it with that

Why your score 675? Bad with money? You can’t really afford an rv.

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