The best RV loans of 2021

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The best RV loans (2021)

  • LightStream RV Loans
  • Bank of the West RV loans
  • SunTrust Bank RV loans

Getting an RV loan is more akin to getting a home loan than an auto loan  — RV loans can be large loans that are harder to qualify for. 

With multiple types of RVs available, ranging from small trailers pulled behind SUVs or trucks to luxurious Class A and C motorhomes, finding a lender that fits your purchase price and will finance the type of RV you’re interested in buying can take some work. 

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Before you start shopping for financing, it’s important to know which type of RV you’re looking to buy. Whatever you’re looking to buy, there’s probably a loan for it. However, there aren’t nearly as many lenders offering RV loans as there are lenders offering auto loans or mortgages. 

Here are Insider’s top picks for RV financing in 2021.

Lightstream RV Loans

LightStream is an online lender backed by Truist that’s known for quick funding and low interest rates on a variety of loan types. The bank has also gotten top marks from Insider for personal loans and auto loans. So, it’s no surprise that LightStream also offers competitive RV loans. 

While this lender doesn’t offer large RV loans — the maximum loan amount is $100,000 — the typical buyer can finance their RV comfortably within this amount and get a competitively low interest rate from LightStream in the process. While some lenders exclude some types of RVs, LightStream is open to most all of them, including trailer-style RVs.

Types of RVs financed: Any RV, including motorhome and trailer-style RVs

APR range: 4.29% to 10.39% APR with auto pay

Loan amounts available: $5,000 to $100,000

Watch out for: Credit requirements. LightStream only works with borrowers who have good or better credit, and that could exclude some individuals. The lender defines good credit as having several years of credit history, a variety of credit accounts open, solid repayment history without delinquencies, and stable and sufficient income to repay the loan.

Bank of the West RV loans

Bank of the West offers RV loans through its lending division, Essex Credit. Bank of the West RV loans offer competitive interest rates and some unique perks for RV-ers, and it is an especially strong option for those looking to live full-time in their RV.

Many RV lenders don’t allow the RVs they finance to be used as full-time residences, but Bank of the West makes this possible. And, this lender makes it more affordable, too — full-time RV-ers will find interest rates almost one percentage point lower than the typical RV used solely for pleasure. 

Types of RVs financed: Any RV, including Class A, B, and C motorhomes and trailer-style RVs. All RVs must be model year 2010 or newer. 

APR range: Start at 3.59% for full-time use RVs; rates starting at 4.49% for new or used campers

Loan amounts available: $10,000 to upwards of $2 million.

Watch out for: Increased rates for some trailer RVs and older RVs. According to Essex Credit and Bank of the West’s website, truck campers and folding camper trailers (also called pop-up or tent trailers) will be charged an extra 1%, which could increase your cost of financing with this lender. Also, watch out for a loan processing fee, which could increase your cost to borrow. 

SunTrust RV loans

SunTrust is LightStream’s parent company, and essentially picks up where its child company leaves off. SunTrust is best for RV loans over $100,000, since that’s the minimum financing amount available. While that figure seems high, it’s probably necessary if you’re considering one of the class A or C motorhomes that SunTrust finances with secured loans — these are generally more expensive RVs. 

SunTrust is best for luxury RV purchases or financing large motorhomes. It’s worth noting that SunTrust’s RV loans will require a down payment since they’re so large. SunTrust charges the same rates for both new and used motorhomes, which could be helpful for buyers looking for a used motorhome. 

Types of RVs financed: Class A and C motorhomes for larger secured loans; any type for unsecured loans.

APR range: Interest rates start at 4.74% for secured loans over $100,000; 4.29% for unsecured RV loans with autopay.

Loan amounts available: $100,000 to $1.5 million for secured loans; $5,000 to $100,000 for unsecured loans. 

Watch out for: Use restrictions. SunTrust doesn’t allow the motorhomes it finances to be used as dwellings, which could be a problem for full-time RV-ers. Additionally, loans are not offered in Alaska, Hawaii, or Vermont. 

Other lenders we considered

Bank of America RV loans

Bank of America only offers RV loans indirectly through select dealerships. You won’t be able to apply online on your own, or purchase outside of a dealership. 

Good Sam RV loans

Good Sam RV loans technically do qualify as one of our top picks — these loans are made by Bank of the West’s Essex Credit division, which is listed as a winner above.

But Good Sam is an RV club, and it does not make its own loans. When you visit Good Sam’s finance center, you’re redirected to Bank of the West and Essex Credit’s website to apply. Because of this, the interest rates on Good Sam’s website are the same as those listed by Bank of the West. 

Navy Federal Credit Union RV loans

Navy Federal’s loans for RV purchases start around 8% APR, higher than rates found at other lenders. 

USAA RV loans

A popular option for financing for military families, USAA’s interest rates are not the most competitive for RV financing. Rates start at 5.75%, and people looking to purchase an RV could get better rates from LightStream. This bank also has a relatively low maximum financing amount of $35,000. 

US Bank RV loans

Interest rates start lower at other banks. Additionally, a 1% prepayment penalty applies if you pay off your loan within a year of opening it. 

Frequently asked questions

How did we choose the best RV loans of 2021?

Insider considered many factors important to RVers, including: 

  • A wide variety of RV types financed: We aimed to find lenders that accepted the most types of RVs, and tried to include lenders that financed both motorhomes and trailers when available. 
  • Interest rates: We compared the starting points of interest rates from each lender, and the whole range if available.
  • Loan fees: We looked for the lenders that have the lowest fees on RV loans, prioritizing those that have no fees. 
  • Better Business Bureau ratings: All lenders that took top spots in our roundup have A ratings with the BBB. 
  • Nationwide availability: We looked for lenders that had loans available in most states, if not all 50.

How to get an RV loan

RV loans are much tougher to qualify for than an auto loan, with most RV lenders requiring a minimum credit score of 700 and requiring large down payments.

There are several things to expect in the process of getting an RV loan once you’ve found the trailer or motorhome you want to finance.

  • Gather information on your employment, income, and other loans: Since RV loans can be large, expect to be asked for a lot of info on your income and assets. Like a home loan, some RV lenders ask to see two years of income history and tax returns. You may also need information on where you live and other debts you have.
  • You’ll need an inspection on the RV: Like buying a house, you’ll need to have the RV inspected before you’re able to get a loan on it. An inspection will likely cost between $150 and $200. 
  • You’ll likely need to get a newer RV in order to finance it: Most RV lenders require that RVs are model year 2009 or newer. If you’re looking for a vintage RV or trailer, financing might not be ideal. In these situations, you might want to consider waiting until you can pay with cash, or using a personal loan instead.

What is the average RV loan interest rate?

The average RV loan has a higher interest rate than the typical car loan, and also tends to be longer. According to data from S&P Global, the average RV loan’s interest rate is 6.17% for a new RV purchase and a 36-month loan term, and 6.15% for a 60-month loan on a new RV purchase.

However, your interest rate is likely to be different from the average. Lenders base RV loan interest rates not only on your credit score and credit history, but also on information about the RV you’re looking to purchase, including its type, age, and mileage.

How long are RV loans?

The length of an RV loan will vary based on your lender and how much you borrow. Larger RV loans tend to be longer, but each lender varies on the maximum length of time. However, it’s possible to pay off an RV loan early in many cases — if you think that’s a possibility, make sure to avoid lenders with prepayment penalties, which will charge you for paying off your loan early.

RV loans for bad credit — do they exist? 

Some companies offer RV loans for borrowers with bad credit, but you could end up paying a high interest rate to get one. An RV is a luxury item, and RV loans already have higher interest rates than car or home loans. They’re also generally harder to qualify for as a result. In our research, we found that many RV lenders require a minimum credit score of 700.

If you’re not quite there yet, it could be worth it wait on your RV purchase and work to improve your credit score. Then, not only will you have a greater chance of getting approved, but you’ll also save money in the long run with a lower interest rate. With a large loan like this, paying an extra quarter of a percentage point in interest could add up to a lot over the life of your loan. Raising your credit score could help you get approved and save.

Other ways to finance your RV purchase

The lenders we’ve looked at aren’t the only way you can get an RV loan. You might want to consider checking with your local credit union to see if they have RV financing available. Oftentimes, credit unions offer these types of loans. If you’re a member or are open to joining a credit union, it could be beneficial to find out if it offers RV loans.

Other popular ways to finance small RV purchases is with a personal loan. However, these unsecured loans may have higher interest rates than an RV loan. If you can qualify for an RV loan, it’s probably your best bet. 

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