Key learning points
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When assessing approval, RV lenders consider credit score, income, and debt-to-income ratio (DTI).
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If the RV is your primary residence, it may be more difficult to get approval. Many lenders only finance recreational RVs.
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Every lender is different, so qualify with as many applicants as possible and compare potential offers before applying.
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To narrow your search, look at the benefits each lender offers. Some offer exclusive benefits such as grace period extensions, interest deductions or payment flexibility.
Driving a shiny RV with that classic “new car” smell right off the dealer lot is arguably more exciting than researching loan options. However, if you’re like most buyers, you can’t have one without the other and should prioritize finding the best lender for your financial situation.
While there is no one “best RV lender,” there are companies that are a better fit for your needs and finances. Finding the best option among multiple lenders can seem intimidating, but the process can be fairly painless if you know exactly what you’re looking for. When comparing companies, prequalify with as many companies as possible and pay attention to the lender’s usage restrictions, eligibility criteria, and loan details.
What you should pay attention to before choosing a camper provider
There are specific factors to consider when looking for the best RV lender. Just as you would with a personal loan or a car loan, you should take your time and do thorough research to find both the most competitive rates and the lender that best meets your needs.
Also keep in mind that RV loans are often much larger than other types of loans (depending on your vehicle and down payment amount) and will likely be part of your monthly budget for years to come. That said, you need to pay specific attention to long-term costs – including hidden costs – and ensure that the predicted payments are achievable in the long term.
Loan Approval Requirements
Each lender offering RV loans has its own loan approval qualifications. While they vary by company, each company will likely consider your credit score and history, income, and debt-to-income ratio (DTI) for approval. These factors also affect your loan terms and the rates you are offered. The better your credit score, the lower your interest rate.
Although some lenders approve individuals with lower FICO credit scores – 600 and below – the loans are more likely to come with inflexible payment terms and high interest rates.
Bank interest tip
Due to the large loan amounts, some lenders do not grant loans to people who plan to use the RV as their primary residence. While some will approve loans for those who choose to live this nomadic lifestyle, this is generally only if they have a low DTI, an excellent credit score, and an established credit history. Unless you fall into this category, it can be difficult to get approved for an RV loan.
Available interest rates
The rates listed on the lender’s website are not always guaranteed. Before you set your sites on a lender because of a particularly low annual interest rate, pre-qualify (if the lender offers the tool) to see your predicted rate. If prequalification is not offered, keep in mind that the APR minimum is reserved for the most creditworthy borrowers.
Also ensure that the interest ranges disclosed are not promotional or limited in time. To better understand the rate you’re being offered, read the lender’s terms and conditions page or call a customer service representative.
As you review the interest details, make sure you are familiar with all the fees associated with the loan. These costs often add up and can significantly increase the monthly cost of your loan. So take into account additional costs such as origination fees, late payment penalties and prepayment penalties. Lenders all have different fee structures, and these are often based on credit. The better your credit, the lower your origination fee may be.
Loan amounts
Before you start comparing the best RV providers, it is important to know how much money you need to purchase your RV. Recreational vehicles can vary widely in cost, from $10,000 to $1 million. This is especially important because some lenders limit the amount you can borrow.
Make sure you take into account all the costs you may incur with an RV. This includes maintenance costs, marina fees, future upgrades and insurance. However, it is important that you do not borrow more and pay interest or fees than you need, so calculate the amount down to the last cent before applying.
Refund options
The repayment terms you sign affect how long you will pay off your loan and your monthly payment. Longer repayment terms mean lower monthly costs, while a shorter repayment term will likely be more expensive each month. However, a shorter term does mean that you will pay less interest over the life of the loan, allowing you to own the RV sooner.
Customer experience
Depending on your comfort with technology, you may prefer to work with a brick-and-mortar lender where you can benefit from personalized support. Whereas, if you are keen on managing your finances online, you should focus on online loan options. Customer reviews on third-party websites can also be helpful, but keep in mind that people are more likely to leave negative reviews than positive ones.
Extras and special features
When evaluating two comparable lenders, pay attention to the unique features that may be offered. A few questions to think about include:
- Does the lender impose usage restrictions?
- Are there rebates, special programs or other forms of assistance available to borrowers?
- Do the benefits outweigh the financing costs, or vice versa?
Ultimately, you know how much loan you can afford and which financing options work for you. Make sure you compare loan quotes and run the numbers to confirm that the benefits of loans don’t come at the expense of good value.
How to Get the Best RV Loan
There is no perfect RV loan for borrowers, but there is the right loan for your needs. When it comes to getting the best RV loan possible, take the following steps to figure out exactly what you need.
Budget. Use your budget as a guide to securing your loan. Keep in mind how costs can impact upfront and long-term costs.
- Understand your credit score. Take the time to check your credit score. This way you can search for and apply to lenders that best match your credit background.
- Apply for prequalification. Pre-qualifying with a lender will give you a good understanding of expected rates and terms, all without damaging your credit.
- Compare loan options. Consider borrowing from banks, credit unions and online lenders before making your decision. By exploring them all, you’ll be more likely to find the right RV loan for you.
- Prequalify and then apply. After you set your sights on the right lender, you can pre-qualify if the lender offers the tool. Once you are satisfied with your potential offer, the lender will guide you through the application process. Prepare with personal, financial and tax documents to make the application process as smooth as possible.
Next steps
Choosing the right lender is just one step in the exciting process of hitting the open road. To ensure you enjoy your RV for years to come, pay close attention to approval requirements, interest rates, loan amounts, repayment terms, customer service, and specifics.
To confidently select the best RV lender for you, you have insight into your payment obligations and total loan costs. To do this, shop around, get pre-qualified with multiple lenders, and then compare loan quotes.
