RV Loans & Financing

Borrowers typically choose between two primary structures depending on the RV's value and their own financial profile.

• Secured RV Loans: The RV itself serves as collateral. If you default on payments, the lender can repossess the vehicle. Because the risk is lower for lenders, these offer lower interest rates, higher borrowing limits, and longer terms.
• Unsecured Personal Loans: No collateral is required. These are ideal for older, used, or lower-cost campers. However, they feature higher interest rates, shorter terms, and stricter credit evaluation since the lender cannot repossess anything if you default.

RV loans behave a bit like a cross between a car loan and a home mortgage due to the potentially long repayment timeline:

• Loan Length: Repayment timelines range widely based on the amount borrowed. Smaller or used models usually have terms of 5 to 7 years. For larger or luxury motorhomes, terms frequently span 10 to 20 years to keep monthly payments manageable.
• Interest Rates (APR): Average rates hover around 6% to 14%, though unsecured options or lower credit profiles can push rates up to 36%. Secured loans on brand-new RVs yield the lowest interest rates.

Securing an RV loan can be tougher than a standard car loan. Most lenders require:

• Credit Score: A FICO score of 670 or higher is generally required for competitive rates. Some specialty lenders accept scores down to 600 but assess higher interest.
• Down Payment: Expect to put down 10% to 20% of the purchase price upfront. Skipping a down payment risks pushing your loan "underwater" quickly due to rapid first-year depreciation.
• Debt-to-Income (DTI): Your total monthly debt obligations should typically remain under 45% of your gross income.
• Usage Limitations: Many standard lenders explicitly prohibit full-time living in the RV or using it as a primary residence. If you plan to live in it full-time, you must source a specialized full-timer loan.