How Long are RV Loans

How Long are RV Loans?

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There is no secret that investing in a recreational vehicle can be quite a good move. This is especially true if you enjoy traveling but are not a big fan of hotels and similar accommodations. An RV allows you to take the comfort of your home on the road. Plus, it will also give you the opportunity to have much more fun with your family and friends while you are going to your destination.

With the rising popularity of this type of vehicle, it is no surprise that there are more than a few companies that are offering great quality models. Some well-known models include the Forest River RV and Grand Design RV, as well as the market leader, Thor Industries.

On the other hand, if what you are looking to buy is an RV that will last you for decades to come, it might be quite a costly investment. This is even more true if you choose a brand that comes with a number of luxury features. For some people, buying a recreational vehicle is the second-most expensive thing they will ever buy aside from buying a house.

Bearing this in mind, cashing out a big sum is not the easiest thing to do, which is why there is something called an RV loan. Much like your regular loans for cars or real estate, there are a few conditions that you need to fulfill. There are also a few things that you need to be aware of, as well.

In order to help you make the best decision, we have prepared this article that answers the question of how long RV loans are written for. We will also introduce you to the perks and risks of a loan.

Things to Consider When Getting an RV Loan

An RV loan can potentially help you get a proper vehicle for your traveling needs. We want to emphasize that, in most cases, you will be able to get a loan that will be paid off in the next 10 to 15 years. If you are lucky and you want to pay a somewhat higher interest rate, there are even lenders that will allow that timespan to go up to 20 years.

The first thing that you should know is that, in most cases, you will have to put the RV down as your collateral. This more commonly goes for vehicles that cost more than $100,000 and are on the higher end of the price range. Believe it or not, depending on your needs and features that you are looking for, an RV can cost you anywhere from $40,000 to $1M.

There are a couple of things you can do to escape the risks of collateral. You could go for an unsecured loan, but you should bear in mind that it comes with higher interest rates, as well.

How Long are RV Loans

The second thing are the many lending options that you have when buying an RV. It is quite common for the RV company (retailer) to have prepared deals with certain banks or credit unions. This is the case with one of the best companies on the market — Forest River RV.

Still, we suggest that, before you go rushing into any deals, you review all of the options and make sure you make the best decision. What you should also keep in mind is that while RV loans are common, qualifying for one may not be that smooth. This is especially true if your debt-to-income ratio is not the best.

In this case, we suggest you put aside a lump sum every month until you have enough cash to pay for at least half of the RV. Then, ask for a smaller loan for which you have a higher chance of being given. Also, you should keep in mind that, as with any other loan, you might be faced with serious interest rates.

This is especially true for rates that are set to be paid off over the course of the next 10-20 years. It is not uncommon that those who go for such loans end up with interest rates that are up to 10-15%. This leads to them paying more than what was the initial price of the recreational vehicle.

What to do Before Applying For an RV Loan

Let's say you have decided to buy a recreational vehicle. If getting a loan is the only way for you to obtain the needed amount of money, then there are a few steps you should take prior to meeting with the lender. First, you should set a budget and make a limit for the sum that you are ready to spend on the RV.

High-end models might provide you with luxurious features; however, if you are on a tight budget and your credit score is not ideal, there is no need to risk being denied or paying a high interest rate. Lower your expectations and go for an RV that is up to $100,000 and still able to provide you with the necessities for a safe and comfortable trip.

Additionally, you should have at least some of the amount needed for the down payment to reduce the interest rate and the loan that you will have to get. Before even talking with the lender you have decided to go with, be sure to check your credit score and know your chances of getting a loan with an acceptable interest rate.

Last but not least, you will need proof of insurance to increase your chances of getting a good RV loan.


An RV loan is a good option if you think of it as a long-term investment and you will be putting the vehicle to a lot of use. However, you should think carefully before applying for and securing an RV loan.

Maybe deciding for a cheaper model that you can afford the down payment on is a better idea. If you are 100% sure that the RV loan will not be a huge burden, then review the available lending options to find one that is most acceptable to your situation.

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