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Obtaining an RV loan is more comparable to obtaining a mortgage than an automobile loan. They can be large loans that are harder to get.
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RVs come in a variety of styles, from compact trailers pulled by SUVs or trucks to opulent Class A and C motorhomes. Finding a lender willing to finance the type of RV you want to purchase is crucial, and the search process can be laborious.
You should be aware of the type of RV you want to purchase before looking for financing. Whatever youre after, theres probably a loan for it. However, compared to lenders offering auto loans or mortgages, there aren’t nearly as many offering RV loans.
Here are the top RV financing picks from insiders for December 2022. Best RV Loans.
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Any RV, including motorhomes and trailer-style RVs, may be financed.
APR range: 5.99% to 15.14% with AutoPay
Loan amounts available: $5,000 to $100,000
Watch out for: Credit requirements. LightStream only accepts borrowers with good or better credit, which may preclude some people. Good credit, according to the lender, is defined as having a long credit history, a variety of open credit accounts, a strong repayment history without delinquencies, and a steady and sufficient income to cover the loan’s repayment obligations.
When it comes to a variety of loan types, LightStream, an online lender backed by Truist (a member of the FDIC), is renowned for its quick funding and low interest rates. Insider has also given the bank high marks for personal and auto loans. Therefore, it comes as no surprise that LightStream also provides affordable RV loans.
The maximum loan amount offered by this lender is $100,000; however, the average buyer can comfortably finance their RV within this amount and receive a competitively low interest rate from LightStream in the process. While some lenders won’t finance certain types of RVs, LightStream will, including trailer-style RVs.
Any RV, including Class A, B, and C motorhomes and trailer-style RVs, may be financed. All RVs must be model year 2010 or newer.
APR range: 5.64% to 11.69%
Loan amounts available: $10,000 to upwards of $2 million.
Beware of rising rates for some trailer RVs and more aged RVs. Truck campers and folding camper trailers, also known as pop-up or tent trailers, will be charged an additional 1%, according to Essex Credit and Bank of the West’s website, which could result in you paying more to finance with this lender. Watch out for loan processing fees as well, as they may raise the cost of borrowing.
RV loans are provided by Bank of the West through Essex Credit, its lending division. RVers who want to live full-time in their RVs have a lot of options thanks to Bank of the West’s competitive interest rates and special benefits.
Bank of the West allows RVs it finances to be used as full-time residences, unlike many other RV lenders. Additionally, this lender makes it more affordable; for example, interest rates are almost 1% lower for full-time RVers than for those who only use RVs occasionally.
Class A and C motorhomes are eligible for larger secured loans, while all RVs are eligible for unsecured loans.
APR range: 6.86% to 9.49%
Loan amounts available: Starts at $10,000
Watch out for: Use restrictions. Truist forbids the use of its financed motorhomes as residences, which could be problematic for full-time RVers. Additionally, loans are not offered in Alaska, Hawaii, or Vermont.
Truist is best for RV loans over $100,000. That amount may seem excessive, but it’s likely necessary if you’re thinking about purchasing one of the class A or C motorhomes that Truist finances with secured loans because they tend to be more pricey RVs.
The best option for financing large motorhomes or purchasing luxury RVs is Truist. It’s important to keep in mind that due to the size of Truist’s RV loans, a down payment might be necessary. For buyers looking for a used motorhome, Truist charges the same prices for both new and used models.
Types of RVs financed: Class A, B, and C motorhomes. Conventional, fifth-wheel, expandable, folding, sports utility, and park model RVs are all types of recreational vehicles that can be used to travel.
APR range: Starts at 6.49%
Loan amounts available: Up to $300,000
Watch out for: High credit score needed. Alliant doesn’t disclose its minimum credit score, but you must have excellent credit to be eligible for one of its loans.
Alliant has a litany of RV types it can finance. The RVs you borrow must be under 15 years old and have less than 75,000 miles on them.
Alliant is a credit union, so you need to join Alliant to take out a loan. To qualify, you can work with one of the credit unions partner organizations, be a family member of an Alliant member, or work in a community near the credit unions corporate headquarters in Illinois. If none of those apply to you, you can qualify by joining Foster Care to Success, and Alliant will cover your $5 joining fee.
Types of RVs financed: Any RV, no restrictions
APR range: Starts at 6.74%
Loan amounts available: $15,000 to $4 million
Watch out for: Restrictions if you have poor credit. If your credit isn’t great, Southeast Financial will enroll you in its Credit Challenge program, which limits the amount you can borrow to $75,000
Southeast Financial is best for borrowers with poor credit. Southeast Financial welcomes borrowers with credit scores lower than 600, unlike other RV loan lenders who forbid them from applying for a loan. Even if you’ve filed for bankruptcy in the past, the lender will still give you a shot at a loan. Keep in mind that you’ll likely pay a higher interest rate the more precarious your financial situation is.
With Southeast Financial, you won’t have to worry about the restrictions you’d have to be aware of with other lenders. You’ll also be able to get any type of RV you’d like. If your credit is good, you may be able to borrow up to $4 million, which is a sizeable sum of money to use to finance the car you want.
Which lender is the most trustworthy?
A non-profit organization called The Better Business Bureau that focuses on consumer protection and trust rates companies based on things like how quickly they respond to customer complaints, how truthful they are in their advertising, and how transparent they are about how they do business. Here is each companys score:
|Bank of the west||A-|
|Alliant Credit Union||A+|
The BBB has given all of our top picks a rating of A- or higher. Remember that a high BBB rating does not guarantee a good working relationship with a lender, and you should continue your research and speak with people who have used the business to get the most complete information possible.
None of our top picks have any recent public controversies.
Other lenders we considered
Insider considered many factors important to RVers, including:
Other ways to finance your RV purchase
There are other ways to obtain an RV loan besides the lenders we’ve examined. You might want to think about asking your local credit union if they offer RV financing. Oftentimes, credit unions offer these types of loans. Find out if your credit union offers RV loans if you’re a member or considering joining one.
Taking out a personal loan is another well-liked method of financing small RV purchases. But compared to an RV loan, these unsecured loans might have higher interest rates. Your best option is probably an RV loan if you can get one.
RV loans are much more difficult to obtain than auto loans because most RV lenders demand large down payments and a minimum credit score of 700.
Once you’ve found the trailer or motorhome you want to finance, there are a number of things to anticipate during the RV loan application process.
The typical RV loan is longer and has a higher interest rate than the typical car loan. S&P Global data shows that the average interest rate on RV loans is 6. 17% for a 36-month loan term and a new RV purchase, and 6 15% for a 60-month loan on a new RV purchase.
Your interest rate, however, is probably not going to be like the market average. Lenders base RV loan interest rates in part on the type, age, and mileage of the RV you wish to purchase as well as your credit score and credit history.
Depending on your lender and the amount you borrow, the term of an RV loan will change. Larger RV loans typically have longer terms, but the maximum duration varies depending on the lender. However, in many circumstances, it is possible to pay off an RV loan early. Avoid lenders with prepayment penalties if you believe that might be the case because they will charge you if you pay off your loan early.
Some businesses provide bad credit RV loans, but you might have to pay a high interest rate to obtain one. RV loans already have higher interest rates than car or home loans because they are a luxury good. Theyre also generally harder to qualify for as a result. According to our research, many RV lenders demand a credit score of at least 700.
If you’re not quite there yet, it might be worthwhile to put off buying an RV and focus on raising your credit score. Then, in addition to having a better chance of being approved, you’ll also end up saving money over time thanks to a lower interest rate. Paying an additional quarter of a percentage point in interest on such a large loan could add up to a lot over the course of the loan. You might be able to save and get approved if you improve your credit score.
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Does Bank of America offer RV loans?
Yes, through affiliated dealerships, Bank of America does provide RV loans to customers. It does not offer RV loans directly to consumers. You’ll need to submit an application at a dealership if you want a Bank of America RV loan.
What is a good loan rate for an RV?
The best RV loan interest rates currently start around 4. 49 percent for borrowers with excellent credit. But the rate you actually receive is determined by things like your credit rating, debt-to-income ratio, and annual income.
How long will a bank loan on an RV?
RV loans typically have terms of between 10 and 15 years, but many banks, credit unions, and other lenders will extend the term to 20 years for loans of at least $50,000 secured by suitable collateral. With Mountain America Credit Union, you can get fixed RV loans with terms up to 15 years1 (180 months).
What credit score do you need for RV financing?
The industry standard for RV financing is a FICO score between 660 and 700, but there is a chance that your search for “RV financing with 650 credit score” will be successful because there is financing available for credit scores between 500 and 600.