Best Banks for RV Loans: Your Ultimate Guide

There are many reasons why people buy RVs. Some people purchase RVs as a way to have a ready vehicle for recreational activities, while others buy RVs to be able to enjoy their retirement fully. There are even people who purchase RVs as their main living accommodations! Whichever reason you have to buy an RV, you need to find the best banks for RV loan application.
The reason for this is that an RV is not a cheap purchase. On the low end, RVs will cost around $10,000, but high-end models with all the fixtures and features can cost up to $300,000! The cost that purchasing an RV will entail will be made lighter with the help of a bank loan. Thus, we have compiled the 5 best banks where you can apply for an RV Loan.
Best Banks for RV Loans Reviews
U.S. Bank
U.S. Bank is the best choice for those looking to secure a loan for their RV through traditional banks. With more than 3000 branches in the USA, primarily in the Western and Midwestern United States, first-time and repeat owners can easily find a branch to help them with their RV loan needs.
U.S. Bank offers a highly competitive rate without needing any additional financing from your chosen dealership. Borrowers must have a U.S Bank personal savings or checking account and can qualify for the lowest rate of 6.4% by applying for a loan of $25,000 that’s repayable in 48 months or less. However, U.S. Bank offers loans up to $150,000 with same-day approval available for qualified applicants. If you want to secure your RV loan from one of their partner dealerships, U.S. Bank offers loans amounts from $10,000 to $500,000 and up to 20 years for repayment. However, the bank will require a 10% down payment if the loan is made through dealership financing.
If you don't have a U.S. Bank branch near you, you can apply for an RV loan online, however if you are qualified for a loan, you must visit a branch personally to complete your application.
U.S Bank does not charge an origination fee for loans. An origination fee is a fee charged by lenders to cover the cost of your loan. If you autopay your loan from your U.S. Bank account, you can get a discount.
While they don’t have an origination fee, they have a handful of other fees, such as their late fee ($29 after 5-day grace period), unsuccessful payment fee ($25), and a prepayment fee (1% of loan amount if loan is paid off within first 12 months after application). This means that you will not be able to pay off your loan early to save money.
Bank of the West
Bank of the West offers financing terms of both new and used RV loans. With more than 600 branches in the Western and Midwestern United States, borrowers will easily find a Bank of the West that can help them with their RV loan financing needs.
If you’re looking to buying a used RV to save some money, Bank of the West offers a variety of financing options for used RVs. With a little bit of research and luck, you can purchase an RV that’s made in 2008 or later with great financing terms. However, the mileage of the RVs are limited to 60,000 for gas models and 100,000 for diesel models. A representative from Bank of the West must also personally inspect the vehicle to ensure that the RV is qualified for the loan.
Bank of the West also offers loans for new RVs ranging from $5000 up to $300,000. What’s more, they also offer APRs as low as 6.25% for applicants who have great credit and opt for their autopay option. The autopay option also offers a discount of 0.25% per payment!
Even if you don’t have a Bank of the West branch near you, you can complete your RV loan application online or by phone. They also offer early loan repayment without any penalties.
Bank of the West does not offer pre-approval for their loans, and they have a strict criterion to see who can qualify for their RV loans. If you are applying for a used RV loan, you may not be allowed to use the RV as collateral against the loan.
SunTrust Bank
SunTrust Bank operates around 1,400 branches in Washington, D.C. and various Southeastern states. It offers a wide range of variable rate options for RV loans, allowing you to find the best deal according to your budget and preferred repayment plan.
Among all of the banks on this list, SunTrust Bank offers the lowest RV loan rate possible at an APR of 3.99%. The loan is repayable in 20 years with the 3.99% rate fixed for the first three years. After three years, the loan APR transitions to Wall Street Journal prime rate with an additional 0.50%. The loan also has a prepayment penalty of 1.50% during the first 12 months. This means that you will be able to enjoy the low interest rate for two years, along with an option to pay off the loan early. However, the loan is only applicable for amounts ranging from $100,000 to $1.5 million, making it inaccessible for those who are looking for smaller loan amounts.
If the terms of the low-rate loan are not suitable for you, SunTrust Bank does offer fixed-rate loans ranging from $50,000 and above. However, applying for a fixed-rate loan means that you would need to give a down payment ranging from 15-20% of the total amount.
If you’re looking to purchase a high-end RV and you have a stable cash flow, their variable-rate loan is a great option because it saves you money, especially if you are able to pay off the loan within the first three years.
If you're looking for a loan that's $5000 to $100,000, you can apply for their LightStream RV Loan program, which can be done online.
For those who apply for the LightStream RV Loan program, the loan is unsecured, which means that you will need to pay a higher interest rate, and you will not be qualified for the program if you have
- a bad credit history.
Wells Fargo
Wells Fargo is one of the biggest financial institutions in the United States and offers RV loans for first-time and repeat borrowers. With branches all over the USA, you can easily find a Wells Fargo bank near you to take care of your RV loan needs.
Wells Fargo provides secure RV loans for up to $100,000 and can complete the whole loan application process in 1-2 days. If you are a Wells Fargo customer, you can set up your checking account to allow for automatic payments and avail of a discount on your loan. However, you can still apply for an RV loan without being a long-term Wells Fargo customer. However, if you are a first-time borrower with Wells Fargo, you must have a good credit score, stable income flow, and low debt-to-income ratio.
Long-time Wells Fargo customers can apply for RV loans through the bank website or over the phone, but first-time borrows must visit a Wells Fargo branch in person to apply. Luckily, there are over 5000 branches in the USA.
Just as with U.S. Bank, Wells Fargo does not apply origination fees or out-of-pocket costs when you apply for an RV loan.
The Bad
If you apply for a Wells Fargo loan, you will be subjected to a hard credit check. If you have a negative credit check, it could affect your credit score and make it harder for you to apply for future loans.
5 Things You Should Know About Getting an RV Loan
Here are five things that you should know before you take the plunge and apply for an RV loan:
- The RV might be used as collateral - If you are getting a secured loan, the bank might require that you use the RV itself as the collateral for the loan. This means that if you are unable to repay the loan on time, the bank can repossess the RV after the loan is defaulted. If you get an unsecured loan, you will not have to put up the RV as collateral, however, you will be incurring higher interest rates and you will be required to have a good credit score before the bank will accept your loan application.
- Compare loan terms from different banks before choosing - Banks will have different terms when it comes to their RV loans and it is in your best interest to do your homework before applying to any bank. Research and compare loan terms for each bank to find out which ones offer the best deals for you.
- Getting an RV Loan approved can be a challenge - Think of getting an RV loan like getting a mortgage for your home: you need to have a good credit score, low debt-to-income ratio, and prove that you are financially capable before you are approved for the loan. If you have a bad credit history, you might find it difficult to apply for an RV loan. While some banks do allow borrowers with bad credit history or without existing bank accounts to apply for an RV loan, they typically ask for a large down payment as well as high interest rates. They might even ask for other collateral, such as other property or vehicles that you own.
- Always Consider the Interest Rate - Some banks offer attractive-looking low rates to entice borrowers, but you should be careful and check it against the repayment period. Typically, lower interest rates mean that longer repayment periods, which can result in you paying more money compared to a higher interest rate with short repayment times. What’s more, some banks even have penalties against early payments to lock you into the long repayment period.
- Your Loan Could End Up More Than the Worth of the RV - Another trick used by banks is asking for little to no down payment on your RV loan. While this means that you won’t be putting up a large amount upfront, this might translate to you eventually paying more than what the RV is worth. Always consider how much the market value of the RV is compared to the final amount that you will be paying through the loan. If you plan to sell off the RV in the future, you might end up losing money because of steep loan rates.
Conclusion
When looking for the best banks for RV loan terms, always consider your budget and what you need from the loan to make it comfortable and advantageous to you. If you have a big budget to work with and you're confident that you can pay off your loan within the first three years, SunTrust is your best option. However, if you're looking for the best rates for a used RV, Bank of the West has the best used RV loan rates. Get more tips on RV loans.