Since we are looking at a 40k trailer and have never financed one before, how does that work, and what type of loan is it?  How many years, interest rates, credit score requirements, etc.  Types of stuff that will get you disqualled etc too.  (I am sure this is something LOTS of folks would like to know as well). 

We want to get all our ducks in a row before we apply, and know what we are getting into.  We plan on having at least 5k to put down. 

Me and my fiancee financed a 4h slant circle J (less than 1/3 of your purchase price so thing smight be different) for 12 years at 9% with GE Money last june(offered by the dealer): going with shorter terms would have brought the rate down to 8.5% or so: at the end we decided to go with the longer terms to have a low payment that we could overpay if we wanted to (like we have done so far).

Make sure that there are no pre-payment penalties

So many people are in the same position as you.  They are interested in obtaining financing for horse trailers but don't know where to begin.  You have voiced some of the same questions and concerns that many buyers also face.

Horse Trailer loans are secured, simple interest loans. Traditionally, the rate is fixed for the term of the loan and down payment is optional.  Normally, there are no pre-payment penalties, but every lender is different - so always ask. The rate and term are determined by credit score and what you are looking to purchase (age and dollar amount).  But you many be able to extend your loan out for as long as 20 years at a rate as low as 6.99% (for qualified buyers)!! 

Credit History does play a huge role in the approval process of your application.  However, there are sources that will finance customers with credit scores across the board.  Keep in mind though, the lower your credit score is, the higher your interest rate will likely be and vice-versa.  Things that would normally warrant a turn down would be: 1. Current Delinquency -- accounts that are currently past due at the time of application.  2.  Recent Bankruptcy with no re-established credit -- less than 1-2 years ago.  3.  Debt ratio issue -- there is not enough income to support the current debt.  Although alone these things may not be reason enough for a turn down, together with other credit issues would be cause for a decline on your application. 

I hope that the information above is helpful.  I think it's great that you are getting all the pieces put together before completing an application.  An informed buyer is always better than the alternative.  Make certain to ask all the questions that are important to you and your situation.  Don't allow anyone to dismiss concerns that you may have.  Your situation may not be unique to them, but it is unique to you.  If I can help you further, please let me know SSEARS@ALLROADCAPITAL.COM or 800-619-4104.  Thanks again for your questions and Good Luck!! 

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