Are you dreaming of hitting the open road with a home on wheels? With the help of recreational vehicle (RV) financing, you can bring that dream to life sooner rather than later. But how do RV loans work, where can you get one, and will you qualify? Here’s what you need to know.
What is an RV loan?
An RV loan is an installment loan that covers the cost of a recreational vehicle. Similar to an auto loan or personal loan, you repay the loan amount (plus interest and fees) through monthly payments over a set term. You can find RV loans from a variety of companies, including banks, credit unions, RV dealers, and online lenders.
How do RV loans work?
As of January 2025, the average cost of a new RV ranges from $14,000 to $750,000 or more, according to nationwide dealer Bish's RV. Whether it's an entry-level travel trailer or a diesel-powered luxury motorhome, you're looking at a large amount to pay out of pocket. Prices for used RVs tend to be lower, but still considerable.
RV loans provide you with a lump sum of funds upfront so you can purchase your RV of choice. You then repay the amount through installment payments over a set term, such as 10 to 15 years.
RV loan costs
RV loans have an annual percentage rate (APR), which accounts for the loan’s interest and upfront fees, and indicates the percentage of the balance you’ll pay in borrowing costs each year.
For example, if you request a $50,000 RV loan with a 10-year term, and the loan has a 10% APR, you’d be looking at a total of $29,290 in interest charges over the life of the loan with a $661 monthly payment.
Keep in mind, you may need to pay fees for state tax, title, registration, Uniform Commercial Code filing, and loan processing.
“Want to game out different loans and repayment strategies? Enter a loan amount, term, and APR into our personal loan calculator to see your estimated monthly payment amount and total loan cost.”
— Barry Bridges, Personal Loans Editor, Credible
Down payments and collateral requirements
Beyond the basics, the way an RV loan works varies depending on the lender and loan type you choose. For example:
- Down payments: Some lenders require down payments on RVs, while others offer 100% financing. A down payment can reduce your loan amount and borrowing costs, but requires you to pay more upfront.
- Collateral: Lenders might require you to use the RV as collateral for the loan. If you opt for a secured loan, you may be able to get a lower APR and higher loan amount, but the loan origination process can take longer and your RV can be repossessed if you fail to make payments.
Where to get an RV loan
You can find RV financing from a variety of organizations. Here’s what you should know about each.
Banks
You may be able to get an RV loan from certain traditional banks. However, many of the largest banks either don’t offer RV loans or don’t provide them directly to consumers.
For example, Chase doesn’t provide RV loans at all, while U.S. Bank and Bank of America only offer RV financing through their networks of RV dealers. You may have better luck with smaller community banks.
Check Out: Best Banks for Personal Loans
Credit unions
RV loans are more common among credit unions. They often have competitive loan offerings and flexible eligibility requirements. Many credit unions operate on a regional basis and require members to meet certain requirements to become members. However, credit unions have become more accessible thanks to online banking.
Check Out: Best Credit Unions for Personal Loans
Online lenders
Another option is online lenders. Many online financial service organizations offer RV loans and/or personal loans that can be used to purchase an RV. In most cases, you can apply online and get an approval decision within a few minutes. While often unsecured, some lenders also offer secured options.
A perk of going this route is the sheer amount of online lenders in the market. You can prequalify with several lenders without hurting your credit score, and compare rate estimates side by side to find the best deal. Just note that prequalification is not an offer of credit, and your score may temporarily drop when you formally apply for a loan.
RV dealerships
If you’re buying an RV from a dealership, dealers often offer loans in-house or through their network of lenders. It can be convenient to take care of the purchase and financing in one place. Further, dealers are incentivized to get you approved to close the sale.
However, it may be harder to negotiate the sale price when the dealer knows your full financial situation (as they would once you’ve applied for financing). They may also mark up interest rates or tack on hidden fees to increase their profit.
How to get an RV loan
Once you’re ready to get an RV loan, here are the general steps to follow:
1. Check your credit and finances
Before comparing lenders, perform a few financial checks of your own. First, review your budget to figure out the maximum monthly RV payment amount you can afford, and for how long you can afford it. Decide on your ideal monthly payment amount, along with the absolute maximum you’d be willing to pay per month. (Don’t be tempted to go over that amount.)
Next, review your credit reports and scores. Ensure that all the information is correct and look for opportunities to get a quick credit score boost. For example, you may be able to increase your Experian credit score by adding utility bills to your account. Paying down outstanding credit card balances can also help decrease your credit utilization, which can quickly increase your score.
2. Research RVs
If you already have an RV in mind, skip this step. If you don’t, research online to get a better idea of the type of RV you want. There are many types, including travel trailers, fifth wheels, toy haulers, truck campers, van campers, Class A’s, and more. Further, there are a wide variety of makes, models, and years.
Key factors to consider during this stage are the RV’s length, weight, floor plan, style, appliances, features, and reviews. Additionally, check on the towing capacity of your vehicle, pay attention to how many people the RV sleeps, and consider whether you want to buy a new or used RV. Sites like Camping World and RV Trader can be helpful for this research.
3. Shop around and get quotes
With an idea of the RV you want, take note of its ballpark cost. From there, shop around for RV loan quotes online. You can start by checking with your bank or credit union. Additionally, prequalify with online lenders to get an estimate of rates.
Within a few minutes, you can have a lineup of quotes to compare side by side. Look for a loan that covers the RV’s estimated purchase price minus the amount you intend to cover, and plus taxes and fees. If you can’t afford the payments, you may need to reduce the loan amount by covering more of the upfront cost yourself (a higher down payment) or by considering a more affordable RV.
4. Find your RV
Next, head out to find the right RV at the right price. Visit local RV dealerships, search RV sites online, and search online platforms like Facebook Marketplace or Craigslist. With your financing in place, you can negotiate the sale price as a cash buyer.
Tip:
If you find an RV at a dealership, you can still negotiate the price as a cash buyer. However, once the price is settled, see how their financing compares to yours.
5. Finalize the loan
Once you’ve found the RV you want to buy and agree with the seller on the price, contact your lender of choice to move forward. You may need to provide the details of the RV you’re purchasing and verify information like your identity, income, and employment.
Upon approval, the lender will fund the loan, sometimes as soon as the same day. For example, they may send you a check, deposit money via an ACH transfer, or wire it directly to the seller.
Check Out: Best Same-Day Loans
RV loan eligibility requirements
While eligibility requirements vary from one lender to the next, most consider your:
- FICO score
- Credit history
- Debt-to-income ratio
- Assets/liquidity
- Employment status/history
- Down payment amount (if any)
- RV make, model, year, and fuel type (when secured)
- State of residency
RV loans for bad credit
Bad credit — meaning a FICO score below 580 — can make it hard to get an RV loan, but you may still get approved. A good place to start is checking which online loans are available to you. If you prequalify with lenders, but don’t receive any suitable estimates, try applying through a credit union or RV dealership.
Credit unions tend to have more lenient requirements for their members, relative to banks. And RV dealers are incentivized to get you financed, so they often have a wide network of lenders for different types of borrowers. Finding a loan that uses the RV as collateral may be your best bet.
FAQ
How long are RV loans?
Open
What are the interest rates on RV loans?
Open
Can you have a cosigner on an RV loan?
Open
Loan Amounts:
