RV Loans

Purchasing an RV is not as simple as buying a car. Irrespective of the reasons for buying an RV, such as for a year long road trip or weekend getaways, customers have to take care to select the right kind of RV at the right cost along with reasonably priced financing. You can opt for used or new trailers, campers, toy haulers, or motor homes, etc.

Being the owner of an RV allows you to enjoy varied adventures without foregoing the amenities of a home. One must however remember that buying an RV is a costly investment. This is where RV loans can be of great help as it can help travelers achieve their dream of a mobile home.

Eligibility for RV loans

Just like auto loans, prospective RV owners will have to provide varied documents such as proof of job and income, credit score, etc., whilst applying for RV loans. Different lenders will have varied minimum limits for credit scores, but the higher it is the better will be the rate of interest on the loan.

Even if your credit score is not that good, there are many lenders in the market who offer RV financing to people with bad credit. Customers with bad credit score will need to shop around to find lenders who offer RV loans that are within their budget.

RV loans in detail

Applying and getting RV loans is one of the easiest ways to finance your dream of owning an RV. A large percentage of RV loans tend to be loans with simple interest rate; this means that each payment (EMI/monthly repayments) is divided into a principal and interest amount. As the repayments keep getting made, the principal amount will reduce and so will the interest amount owed.

RV loans are offered by credit unions, banks, and other types of financial institutions. RV financing can also be availed at the dealership. It is recommended that customers get pre-approval for their RV loans before they start scouting for their dream RV as pre-approved loans can help customers have more negotiation power at the time of purchase.

The amount that can be borrowed as RV loans can range anywhere between $1000 to no upper limit. The term for such loans is typically between 10 and 15 years. It can however also be longer if the amount that you take out as an RV loan is $45,000 or more.

A down payment of less than 21 percent is usually charged by most lenders when buying an RV. Some lenders may ask for 10 percent down payment, while some others may not require any down payment. It must however be noted that interest rate is lower with a higher down payment.

Most RVs tend to have a toilet, a sleeping section, and a kitchen area. Hence, such RVs are regarded as homes. If the RV that you purchase via RV financing has such amenities, then you qualify for tax deductions on the interest levied on the RV loan.

It is advisable for RV customers to take time and research about the different RV loan options available in the market so as to be able to find loans that best suit their needs and budget.