Where to Get an RV Loan (2024)

FAQs

Where is the easiest place to get an RV loan? ›

If you're looking for a fast decision on your RV loan, consider Southeast Financial. It offers credit decisions in as little as three hours for new and used RV loan applications or refinances.

Most lenders require a FICO score of at least 670 to qualify for an RV loan. However, some will allow FICO scores below that threshold. To secure the lowest rates, you'll need a credit score in the mid-700s or higher. Otherwise, you could end up with a hefty interest rate.

The application process for an RV loan is similar to that of applying for an auto loan, but getting approved is often harder. That's because lenders tend to have stricter requirements for these types of loans, given their large amounts.

Get on the Road!

We usually have a response from a recreational lender in 24-48 hours. If we need additional documentation, we'll reach out. All you have to do is dream about becoming a road warrior. We'll help you find the interest rate and RV loan lender that fit your budget and lifestyle.

Lenders generally qualify you for an RV loan based on your credit, income, total debt and the specifications of the RV you're financing. Your RV becomes collateral for this type of RV loan and the lender can repossess your RV if you default. You can also use an unsecured personal loan to buy an RV.

Most lenders that offer recreational financing will require that your debt to income ratio be less than 40%. You can calculate your DTI ratio by totaling up your monthly recurring debts (total of all of your monthly payments for installment loans and revolving loans), then divide that number by your monthly income.

The standard FICO Score range for RV financing is 600-700, but check with your lender to see what they recommend. Owning an RV requires a significant financial commitment. Most buyers will need to get a loan.

The answer is, it varies greatly. The RV financing industry-standard ranges from about 660 to 700 FICO score, but there is a possibility your search for “RV financing with 650 credit score” can be fruitful because there is financing available for credit scores in the 500 to 600 range.

Is an RV a Financial Investment? The short answer is no. With the exception of some in-demand vintage models, the value of an RV depreciates over time. An RV is an investment in a lifestyle, but you can mitigate the expense by renting it out when not in use through a third-party rental site like Outdoorsy or RVshare.

Is it easier to finance a new or used RV? ›

You may need a smaller loan for a used RV because it has a lower price than a new one, and it can be an easier process to secure a smaller loan. Otherwise, getting a new or used RV loan is relatively similar, and it isn't hard if you work with the right place.

While an RV loan is similar to a car loan, it's different in that the length of the terms are much longer than the terms for a car loan, considering how much more expensive an RV is than a car. Loan terms for an RV loan tend to be 10 to 15 years long (180 months equals 15 years).

Adding it all up, the price of living in an RV can vary widely. For a travel trailer, you can expect to pay between $825 and $1,750 a month. For a Class A motorhome, you can look to pay around $2,600 to $3,300 a month.

How much do I have to put down? You are more than likely going to need to save at least 10% of the cost of your RV as a down payment, no matter how you choose to finance it. Some dealerships or lenders may even require 20% down, depending on the size and type of loan.

The interest rate is generally higher than a car loan rate though, and it also has a longer length. The average RV loan rate is 9.5%-13.5%, and 120-180 month loans are the most common. At My Financing USA, our current rates for RV loans range from Rates Between 6.49% and 19.95% based on several factors.

Most lenders that offer recreational financing will require that your debt to income ratio be less than 40%. You can calculate your DTI ratio by totaling up your monthly recurring debts (total of all of your monthly payments for installment loans and revolving loans), then divide that number by your monthly income.

Most lenders won't give you a loan for RVs in the 12 to 15-year-old range, so you must strategize by taking out a personal loan or seeking help from credit unions.