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Last Updated on October 9, 2024 by Paul Clayton
Table of Contents
The Best RV Financing Providers and Guide To Getting A Great Deal
Consider RV financing if an RV seems like a dream come true but you don’t have substantial cash deposits.
Key Takeaways
The document overviews RV financing and highlights some of the best providers. It also discusses factors to consider when securing an RV loan.
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- RV financing can help people afford an RV by offering loans with various repayment terms.
- The best RV financing providers offer competitive rates, flexible terms, and transparent fees.
- Some factors to consider when choosing an RV loan include interest rates, loan terms, and fees.
- The document recommends four RV financing providers: LightStream, Good Sam RV Loans, RV Financing USA (for bad credit), and USAA.
- LightStream offers unsecured personal loans with low rates and flexible terms but requires a good to excellent credit history.
- Good Sam RV Loans offers loans for new and used RVs, refinancing, and private party purchases. They require a credit score of 690 or better.
- The document mentions other RV financing providers like RV Financing USA but doesn’t go into detail about them.
Navigating the world of RV financing can be complex, but with the proper guidance and provider, you can secure an excellent deal. The best RV financing providers offer a range of loans with competitive rates, flexible terms, and transparent fee structures. They have a streamlined application process and provide excellent customer service.
This guide to securing a good deal on RV financing will provide valuable insights on comparing offers, negotiating terms, understanding loan conditions, and ultimately choosing the right provider. Your dream of owning an RV can become a reality with the help of these top-notch RV Financing Providers and our comprehensive Guide To a Good Deal.
Nowadays, you can take a loan from the comfort of your home by simply clicking on one of the hundreds of websites offering benefits such as “no fees, no prepayment penalties, no appraisals or home equity requirements.”
Maybe you’re considering purchasing an RV because life on the road has become increasingly popular, and you want to check it out. An RV vacation has many perks, including traveling and bonding with nature. An RV has a kitchen with a microwave, fridge, and stove, a TV and VCR, beds, living and dining areas, and a bathroom with a shower. Sounds much better than a tent, right? Indeed, it’s a great way to travel if you have children.
However, remember that this could transform into a costly vacation. An RV loan can be between $5,000 and $100,000 and could extend for 20 years, with fixed installments starting around 7.74% to 9% (due to the current economic climate, we can not accurately publish rates).
Regarding RV finance, there are plenty of variables to consider. We’ll cover these in more depth in the rest of the article and help you get the best deal possible for your RV loan. But first, let’s look at some of the best RV finance providers.
Best RV Financing Providers
While there are people in need of money, there will always be companies willing to lend them the amount they need for a “little” interest on the side. There can be some pretty awesome RV financing providers, but there are also those who seek only to make a profit. We’ve researched and found four RV financing providers that stand out. You should consider accessing their sites if you require a loan, but once again, ensure you read all the details on their websites.
Lightstream (Highly Recommended)
Lighstream offers flexible loan terms. What struck us on their site was the “customer satisfaction guarantee,” which sounds like this: LightStream offers $100 back for unhappy borrowers who have had their loan for less than 30 days.
What kind of sorcery is this, and where is the catch? There is no catch, but you must contact the company and complete a questionnaire to receive the $100. And to make sure it has few unhappy customers to fill out the questionnaire, Lightstream assures it will beat any competitor’s interest rate by one-tenth of a percentage point, requiring you to show the competitor approves you for a regular fixed-rate loan with the same amount, term, purpose and payment method.
Applying for a loan on their site is not complicated. All you have to do is select your loan purpose, view the potential interest rates you might receive, and begin the easy online application process. Additionally, you can opt for a co-signer if you desire.
From these 3-4 positive notes alone, Lightstream stands out. So what’s wrong with it? Well, it’s not a magic genie, as it doesn’t grant wishes for everyone. To qualify for a Lightstream loan, you must have a good to excellent credit history, several years of credit history, and a strong record of on-time payments.
Good Sam RV Loans
Good Sam Finance Center offers competitive RV loan rates for new and used RV purchases, private party RV purchases, and RV refinancing for existing RV loans. According to their website, the Good Sam Club is the world’s largest RV owner’s organization, with over 1.7 members nationwide.
With APRs that go from 8.24% to 8.24% (due to the economic climate we are faced with at the moment, we can not accurately publish rates), Good “old” Sam offers clients loan amounts between $10,000 and $150,000+. Yes, if you reach an agreement with the company, you could be up for a loan that exceeds $150,000. Loan terms are anywhere from 5 to 20 years, but just like what we had at Lightstream, conditions are impossible for those with bad credit. First, you should have a credit score of 690 or better. Then, changeable conditions affect your interest rate, such as the model and year of the RV.
But it’s not just requirements on their part, as they offer a multitude of member benefits, including discounts of 10% on nightly rates every time you stay at any of the 2,100+ Good Sam-endorsed RV parks and campgrounds, discounts at RV parts, services, and accessories, RV books and magazines, the GoodSam RV Travel & Savings Guide, and Good Sam Emergency Road Service.
You can apply for a loan by fax/mail, or phone, but we’ve tried the online application. It’s a bit complex, requiring you to fill in collateral information (e.g., Vehicle, Year, Make, and model) and personal information (e.g., Date of Birth, Social Security Number), followed by employment and income information. Completing this application should take between 10-20 minutes. The good part is that the site has a “save” option, which allows you to start the application now and finish it later. Your information is secured with a password that you create.
The site doesn’t look like much, but it has the right tools for an individual seeking an RV loan. The loan calculator lets you calculate your monthly payment or loan amount.
The site also has a FAQ section and another one that lets you submit questions.
RV Financing USA (Great for Bad Credit)
With excellent reviews on social media, RV Financing USA has been on the market since 2003 and has processed over $2 billion in loan applications. They have new lending programs with competitive rates for qualified applicants, offer RV financing for purchases from dealers and individuals, and refinance existing RV loans for good and bad credit. Yes, you’ve read correctly. RV Financing USA can be a solution for those with bad credit scores.
According to the site, the minimum credit score required for a loan is 550. They make applying for an RV loan easy, even if you have had credit challenges.
First, pick an RV you’d like to buy and submit the year, make, model, and model number. Then, apply online using a Norton Symantec-secured website. Regarding providing proof of income, 
RV Financing USA requires a pay slip and W2 if paid hourly or on salary.
If you are retired, they want a benefits letter or bank statement. If you are self-employed, they want two years’ tax returns. That’s the “hard” part. After all, you can sign with one of their certified RV loan signing agents and acquire your RV.
A bad credit loan can be achieved even by those who had a previous bankruptcy. However, besides the credit score (minimum 550), other aspects vary from the “good credit” loan. There is a $10,000 minimum loan amount and a $75,000 maximum amount, while the maximum loan term is 12 years.
Of course, as mentioned above in the “RV Financing with bad credit” section, no lender gives money to those looking to transform their future RV into a permanent home. That’s why RV Financing USA states that their lending programs do not permit RVs for temporary or permanent residences. Even under the bad credit program, the company may refuse you if you have a high debt ratio, unverifiable income, multiple bankruptcies, or extensive outstanding collections.
What’s the difference between the bad credit loan requirements and those for a good credit loan? RV Financing USA’s good credit RV loan program rewards customers who have worked hard to achieve a high credit rating. It offers them terms of up to 20 years with competitive rates and discounted service warranty products.
You’ll need a minimum credit score of 680 to qualify for this program, but other aspects may disqualify you from receiving approval. Among those things are unverifiable income, bankruptcy, outstanding collections, delinquent payments within the last 24 months, limited installment history, or a NADA value of RV too low.
Regardless of the program, rates range from 4% to 17.99% (due to the economic climate we are facing at the moment, we can not accurately publish rates) based on your credit, the collateral you are purchasing, the state you live in, and other factors. A plus for RV Financing USA, from our point of view, is that it offers 20-year terms for loans over $100,000.
The website is simple and has a lot of free space. It does explain one big issue that it’s encountered. Specifically, the company warned its clients by revealing a scam involving a group of individuals posing as My Financing USA that has targeted its customers or anyone who applied on its website.
So keep an eye open for this type of scam.
USAA
Unlike the previous two companies, USAA has a modern website that offers much information (like coverage options and advice on topics such as how to live in retirement, plan your estate, or buy or sell a home or car) in a quick-to-access way. And let’s start by saying that USAA’s customer satisfaction ratings are among the best in the industry. This means the company knows the client’s needs and how to satisfy their grievances.
USAA has rates as low as 5.75% but can go up to 14.74% (due to the economic climate we are faced with at the moment, we can not accurately publish rates). But it’s a complicated system; you must see the full table to figure it out. It depends on the loan term, the amount you take, and your credit score.
But if these details are standard for all lenders, the next thing saw us with our jaws wide open – USAA offers 100% financing with little to no money. However, they specify with little letters that the total loan amount cannot exceed USAA’s determination of the vehicle’s value plus tax, title, and license.
Applying for a loan is easy and can be done in three steps. First, you have to complete the loan application. To do so, you’ll need an account, which is not hard to create. After filling all the empty spaces on your loan application, you await a decision. If your file is OK, you can call a number to complete your purchase. USAA also offers RV refinance, so keep that in mind.
RV Finance Getting a Good Deal
Even though it might initially sound difficult, you can find the best offers with proper research. But first, let’s clarify a few things.
Many people don’t know that you can claim an RV as a primary or secondary residence, which can positively impact your federal taxes as a deduction. If a vehicle has areas designed for sleeping, cooking, and toilet facilities, it can be declared a residence. As long as the RV is used as a security for the loan used to buy it, the mortgage interest could be deducted from your taxes as a homeowner.
Because RVs usually cost much more than regular passenger vehicles, the loan looks more like a mortgage than a typical car loan. Furthermore, there’s no point in purchasing an RV you can barely afford. It may be brand new now, but you must invest later.
Additionally, consider how much gas it takes or where you can store it when you’re not using it. Details like these can prove quite important for an individual who depends on a loan to afford an RV.
Secondly, most people tend to accept the first offer they have on the table. Grabbing the first loan available shows how much you still have to learn financially, which could be a reason for your poor credit score.
You don’t want to settle for the first offer you get. Treat RV loans like every other decision you have to make in your life. You didn’t marry the first girl who walked into your space, right?
That’s the same with RV loans. You never want to assume that RV loan rates are equivalent to auto loans in size or duration because you’ll have a tough life in front of you, living from paycheck to paycheck.
Many RV loans have a 20-year term, which can make an RV seem much more affordable than it is. However, much like any other kind of loan, you don’t want to grab the first offer you have when you need to finance one recreational vehicle. When securing a loan for your RV, study how auto loans differ from unsecured RV loans before deciding.
Third but not least, plan for your future. All things can depreciate, and RVs are no exception. A new RV can depreciate as much as 30% the moment it’s driven off the dealership’s lot, so remember that you own more money than your “property” values if you decide to sell it in the future.
What’s the solution to save yourself from owing more money than your RV goes for? Make a sizeable down payment, if possible. Should you decide to sell it or trade it in, you’ll owe as little as possible in the coming years.
RV prices can go from a few thousand dollars to over $100,000, so another solution is to climb up the ladder. Try acquiring a cheaper one and upgrade whenever you have the money flow in your favor. If you initially purchase a lower-priced model, you can quickly pay it off and trade it in for an improved model later. Remember that RV loan rates are not the same as auto loan rates, and buying such a vehicle can become a complex process, especially when you’re having issues with your credit.
Okay, let’s move on to some facts and consider your options for financing your next RV in various situations.
RV financing with bad credit
Now that we’ve learned a few things about RV loans, it’s time to answer the first important question—how can we maximize our chances of getting one with bad credit?
First, you need to decide what you’ll use the RV for. Then, you’ll need to decide on the engine capacity, desired facilities, and the model. These details are essential.
That’s because if you want to maximize your chances of RV loan approval, you should look for ones less than 10 years old, with a loan amount between $5,000 and $40,000. It’s not an absolute ceiling, but it’s better to be between this margin. However, when you decide on a budget, expect an interest rate higher than usual.
Often between 15-20%, in most cases.
You may get approved for your loan, but lenders want to make a profit, and your bad credit score can become ideal for them if you pay back on time.
We don’t feel it’s necessary to mention this, but we’ll do it anyway: When filling out the papers, it’s very important to go for “part-time use” RVs and travel trailers. As you may figure out, banks don’t usually want to lend money to those using their RV as a temporary or permanent home for obvious reasons. While receiving a loan is still possible, even if your credit score is below 550, it should be over this margin to have a decent opportunity.
If you get through and receive the loan, it’s up to the next stage – payments. Your final payment will depend on several factors, like the loan amount, loan term (how many months), and the interest rate you get approved for. You can’t be fully prepared from this point of view before you talk to lenders… But be advised – study these elements well before putting your signature on those papers.
You may believe you can handle the interest rate now, but financial stability is necessary because these loans are long-term deals. And let us tell you that 20% isn’t easy to pay off.
Unfortunately, these are the interest rates for those with bad credit. In any loan situation, the rate is always negatively correlated with your credit score. In other words, the higher your credit score, the lower the rate, and vice versa.
This is how a bank thinks and works; the situation will always be the same. It’s like in a relationship – if you mess things up, it will take a lot of apologizing and making amends to achieve forgiveness. A bad credit score tells a story about you.
It says to the bank that it’s risky to loan money to you.
The fact that RV loans tend to draw slightly higher rates than car loans also has a pretty good explanation. Your lender assumes that if things go south for you, your RV payment will be a lower priority than your house or car payment. That’s because an RV is not considered to be a necessity.
But before you start planning for your future RV acquired on loan, remember that most banks (and we’re generous when saying most because that’s all of them) require some money down before accepting your loan. Usually, it’s somewhere between 8% and 10%, yet it can go higher, depending on the bank and other aspects that hinge on the RV you want, your credit score, etc.
We’ve discussed how important financial stability is, yet we want to return to the topic to ensure we’ve covered all it is to discuss. Though you may have hurt your credit score in the past, having a solid income in the present surely qualifies you as a customer with serious intentions. Also, if someone in your household has recently started receiving income, it can make a severe difference in how the lender sees your application.
This is, however, a positive note on the matter.
On the side, there’s the scenario in which you’re buried in debt and have existing loans already above a certain level compared to your assets and income. Loaners will verify your debt-to-equity ratio and most likely will give you a thumbs down. The best advice is to try paying off at least one of your existing loans and devise a plan showing how you can pay off more in the future. It may affect your momentum and plans with the RV, but at least you can positively adjust your credit score, and someday, you’ll afford a much better vehicle.
RV financing terms you need to know
You’ve probably encountered some unfamiliar terms by this point of the article. Don’t worry, though. We’ve gathered some of the financing terms you need to know and explained them as clearly as possible for everyone to understand.
Let’s start with the basics. What’s a credit score? A credit score is a numerical expression based on a level analysis of a person’s credit files and represents your trustworthiness in front of lenders. It’s primarily based on credit report information typically sourced from credit bureaus. Finally, with your credit score in their hands, lenders who qualify for a loan, at what interest rate, and what credit limits.
With the phrase above, we’ve added another term to our checklist—interest rate. To keep it short, an interest rate is the amount a lender charges for using assets expressed as a percentage of the principal. In other words, it’s what banks earn from lending you money.
We didn’t discuss the following term, balloon payment, because no creditors offer it, and it depends on your loan term. However, it’s too important to leave it without a proper introduction. A balloon payment is a large payment due at the end of a balloon loan, such as a mortgage, a commercial loan, or, in our case, an RV loan. A balloon loan is typically for a relatively short term, and only a portion of the loan’s principal balance is amortized over that period. The remaining balance is due as a final payment at the end of the term.
You should consider refinancing if you’re having trouble paying your current RV loan. This happens when an individual cannot pay and represents replacing an existing debt obligation with another debt obligation under different terms.
The terms and conditions of refinancing may vary and be impacted by several economic factors, such as inherent risk, projected risk, or banking regulations. While we’re on the subject, let’s explain the inherent risk: the risk posed by an error or omission in a financial statement due to a factor other than a control failure. A projected risk is when the bank takes on a particular task (your loan) that may cause exposure (you not paying it).
An easy-to-understand term is a down payment. It refers to a cash payment when purchasing an expensive good or service. Banks almost always ask for a percentage of the loan in this case. It is essential to perceive a down payment as it will affect your interest rate.
For example, if you borrow $80,000 on a 5% interest rate loan, you owe $4,000 in interest in the first year of the loan alone.
However, if you have a $20,000 down payment, you only need to borrow $60,000. As a result, during the first year, your interest is only $3,000, saving you $1,000 in the first year alone. And while we’re at terms used to calculate your monthly recreational vehicle loan payments, let’s talk a little about what a rebate is – an amount paid by reduction, return or refund on what has already been spent or contributed. In simpler words, it is like a sales promotion that banks use to attract clients.
RV Financing FAQ
How does RV financing work?
Before considering RV financing, you must determine your credit score, as your loan will evolve around this aspect. After you’ve researched what lender is the most suitable for your needs and means, the easiest way to proceed is to complete their online application. It’s not that complicated how it works – you usually fill in the details of the RV you want, complete with your personal information and proof of income. You get a notice if approved (with interest, loan term, and payments established with your consent).
Afterward, you get the RV (or the seller receives the paycheck and handles the RV), leaving you with monthly payments for the lender. Usually, there aren’t penalties for late payments, especially for those with a good credit score, but it will eventually downgrade your credit score. In case of need, lenders can propose a refinancing, offering you more suitable interest, loan term, and payments for your situation.
How hard is it to get RV financing?
For those with a good credit score, it’s not that difficult. They also receive some perks from the lenders for always being on time with their prior payments. Folks with bad credit will have more difficulty finding the right lender, as they will have higher interest and payment. And most lenders don’t accept people with a credit score below 550. In both cases, all they have to do is request a loan (via mail, fax, phone, online, or at a certified RV loan signing agent). If the loan gets approved, it only depends on the data they’ve supplied and their eligibility for the kind of loan they’ve requested.
We’ve written a great article on how to finance an RV if you’d like more information.
What do I need to know before financing an RV?
First, knowing your credit score is essential as it will influence how you proceed. It would help if you had already established your desired RV model with all the required details (year, make, engine). Some financing terms are not to be ignored when taking out a loan. You should be able to understand terms like interest rate, down payment, refinancing, etc. If you’re not familiar with them, we’ve explained most of them in a section of the article.
It’s not mandatory, but we recommend it to people before getting a loan—you should always plan further into your future. Do you have financial stability? A 10-year loan is hard to handle if you don’t know where you’ll see yourself down the line.
How much is RV financing?
The sum you can get with RV financing depends on the lender, credit score, and the loan term). As you can figure out, most banks don’t want to lend you an amount that exceeds your financial possibilities. And your credit score is usually an indicator of what you can pay back. If you had trouble paying a certain amount before and your earnings have remained the same, no lender will give you more than you previously had.
Banks don’t like to take chances for a sum beyond $100,000, even with an excellent credit score, so they’ll put you on a 20-year term. This way, your monthly payment will never exceed your possibilities, and you’ll always be able to pay on time, even if it does take a bit longer.
How long are RV loans?
The time frame for an RV loan is very different, and it depends on numerous factors, including the type of lender—banks, credit unions, and other finance companies. RV loans range from 7 to 15 years, but they can also be extended to 20 years for loans of $50,000 or more on qualified collateral.
Is it better to get a 20-year loan?
No one wants to get a 20-year loan and pay the interest for such a long period. However, the most significant advantage of a long-term loan is that you can get lower monthly installments. You save money that you can spend daily, even though, in the long run, you pay more to the bank.
What will my interest be?
Several factors, including the loan amount, financial terms, and your credit history, determine your interest rates. An individual with a low credit score will have issues getting a loan. In any loan situation, the rate is always negatively correlated with your credit score. In other words, the higher your credit score, the lower the rate, and vice versa.
Will my RV loan rate be fixed?
Most lenders offer fixed RV loan rates, meaning your monthly payment will remain locked in throughout the life of your loan. If you know you have a fixed monthly amount to pay, keeping it going with payments will be easier. If at any time your financial status gets a hit and you can’t afford the monthly payment, refinancing is always a good solution.
What other factors determine what interest rate I get?
Besides your credit score, many other factors influence the interest rate your lender applies to you.
- It depends if the RV is new or used. An older used model will get a higher interest rate than a new RV.
- Your down payment will affect your interest rate. The interest rate will be higher if you finance the RV on a zero-down program. And that’s a big “if” because few lenders offer zero-down payment loans. Banks will almost always ask for a percentage of the loan.
- The term of the loan will affect the interest rate. The shorter the term, the higher the rate; the longer the term, the lower the rate.
- The amount financed will affect the interest rate. The lower the amount, the higher the rate; the higher the amount, the lower the rate.
Am I required to have a down payment?
The lender most often requests a 10% minimum down payment as part of your commitment to making the payments. The lender will finance up to 90% of the total purchase price, including the vehicle’s sales tax.
While a few lenders boast their “little to no down payment” programs, you need to understand that a significantly necessary initial payment will save you money in the future. The more money you feed out of your pocket, the less interest you’ll have. To better comprehend, let’s take this example: If you borrow $100,000 on a 5% interest rate loan, you owe $5,000 in interest in the first year of the loan alone.
However, if you have a $20,000 down payment, you only need to borrow $80,000. As a result, your interest will be only $4,000 during the first year, saving you $1,000 in the first year alone.
How does RV financing work when I trade an older model for a newer one?
You get a new loan for the amount you still owe on the old vehicle plus the different price
for the one you want to acquire. The dealer sends a check to your bank to pay off the remaining balance on the trade-in as of the trade date. The payoff amount will be less than the sum of the remaining payments because you stop paying interest on the old loan after the payoff date.
We advise almost always trading your older unit for a newer one before you finish your initial financing. For your pocket, it’s a much better solution to do it than instead of waiting to ultimately pay off your loan before purchasing a new one.
Can I write the interest off on my income taxes?
The answer is positive, as a self-contained RV is considered a second home, and the interest paid is deductible. That’s if you are not already deducting the interest on a second home. An RV is considered a qualified residence if it is one of the two residences the taxpayer chooses for deductibility purposes.
To qualify, it must provide basic living accommodations, meaning it has cooking, sleeping, and bathroom facilities with fresh water and wastewater-holding tanks. To get things done correctly, you should ask your tax advisor what is required to write the interest off on your RV.
Do I need to have insurance on the RV to get a loan?
Insurance is required when you close on the loan. In most states, the law requires motorhomes to have liability insurance while driving. Keep in mind that lenders accept loans just for RVs that clients take as recreational vehicles
How much does it take to receive a response from the RV lender?
Usually, it takes anywhere between 24h and 72h. However, lenders specializing in RV loans often give their response the same day you complete your form. That’s if your information is easy to verify, and they don’t need to check more of your financial background.
Should I finance the RV or pay cash?
It makes more sense to finance your RV purchase. Doing so lets you maintain your financial status without liquidating any assets. A good RV costs a lot of money, so you’ll be forced to make some financial sacrifices to afford it cash down. It doesn’t sound right to downgrade your lifestyle to buy an RV that will automatically lose value the second you turn the engine on. If the RV qualifies, you can also take advantage of writing off the interest on your income taxes.
Wrapping Up
In conclusion, identifying the best RV Financing Providers is a crucial first step toward acquiring your dream recreational vehicle. With many providers in the market, finding one that offers competitive interest rates, flexible payment options, and excellent customer service is essential.
A comprehensive guide to getting a great deal on RV financing will include researching and comparing various providers, understanding your credit score requirements, and negotiating the best terms. Remember, a good deal doesn’t only mean low monthly payments but also includes manageable interest rates and favorable loan terms. Use this guide as your reference when navigating the RV financing landscape.
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