Many lenders offer RV loans for both new and used recreational vehicles. You may be able to find RV financing through an online lender, bank, credit union or the RV dealership where you purchase the vehicle.
Some financial institutions and online lenders won't have RV-specific loans, instead they may be advertised as personal loans that can be used for RV-related expenses. However, make sure that the lender approves the loan for these types of purchases; some may require you take out a secured loan due to size of the purchase. If you finance directly through a dealership, it's likely that the loans will be advertised as RV loans.
How to compare RV loan lenders
Use the following factors to compare RV lenders and find the best one for you and your credit situation. If the lender offers prequalification, which allows you to check your approval odds and potential rates without impacting your credit, make sure to take advantage of this tool to ensure you're applying for the loan that will best benefit you now and in the future.
- Rates: The lower the interest rate, the less you'll end up paying over the life of the loan. When looking at lenders, look for the ones that offer the lowest rate maximums. The best rates will go to the most creditworthy borrowers, but it's always wise to compare multiple offers to find the most competitive rate for you.
- Max loan amount: Make sure the lender you're looking at meets your borrowing needs. Most lenders offer maximums that range from $30,000 to $50,000. Generally, the better your score, the more you'll get approved for.
- Loan terms: Most RV lenders offer terms that last between 12 months and 60 months, although some lenders may allow for longer or shorter terms if they offer repayment flexibility.
- Credit score requirements: To qualify for an RV loan, you'll likely need a good-to excellent credit score. However, every lender will differ in its minimum score requirement. Make sure to compare as many lender's as possible when it comes to minimum score requirements; just because you don't meet one lender's requirements doesn't mean you won't get approved for another lender.
Before diving into the lender comparison process, know exactly what you want out of a lender to find the best loan for you and your financial situation. Loans will differ based on what type of vehicle you're financing — and if you're financing a motorhome or RV — how you intend on using it.
How to qualify for the best RV loan rates
When qualifying for an RV loan, your rate for financing might be higher than the rate you get for a car loan. RVs are considered luxury items, and lenders are more cautious about lending money for luxury items because they’re considered expendable during a financial crisis.
Check your credit score to see what kind of rates you might receive from lenders. Lenders use credit scores (generally FICO scores) to determine your level of credit risk. They will also consider your debt-to-income ratio, which reflects your monthly debt payments divided by your monthly gross income. Most lenders will require a debt-to-income ratio under 40 percent, although some may go as high as 50 percent.
If you want a variety of quotes, use lending marketplaces that let you fill out one application to get offers from several lenders. This makes it easier to see which terms you qualify for and choose the best deal for your situation. You should also consider pre-qualifying with a few lenders before deciding on one.
Whichever route you choose, the lender will want to know some basic information about the RV you intend to purchase. For example, you will need to provide the value, age and mileage of the RV. Buying a used camper can save you money upfront, but it will usually come with higher interest rates and potentially higher maintenance costs in the long run.
Can you prequalify for an RV loan?
If you decide to get an RV loan from a lender rather than financing through the dealership, most lenders allow you to prequalify. This allows you to see the terms you are eligible for without hurting your credit.
The lender will perform a soft credit check in order to determine what you might be eligible for. You will still have to do a hard credit check when you officially apply, but prequalifying gives you an idea of what your terms with a particular lender could look like without making a commitment.
Insurance for RV loans
To get a loan from most lenders, you’ll need proof of insurance. Depending on your insurance company and vehicle details, the insurance costs could add a significant amount to your monthly payment, so budget for that as well. To avoid a clunky application process, talk to your insurance company and make sure your coverage meets the lender's requirements before signing on the dotted line.
.png?optimize=medium&width=150&format=pjpg&auto=webp)
