How long is a typical RV loan for?
We offer a variety of terms ranging from 6 to 20 years depending on the RV loan amount. Generally, RV loans range from 10-15 years, but the maximum or standard term for an RV loan can be affected by the type of RV you’re financing, the RV model year, and the mileage.
What credit score do I need for an RV loan?
All lenders have different requirements when it comes to financing campers or motorhomes. The minimum credit score needed to obtain an RV loan is usually 600. Some lenders may work with you if your score is in the high 500s but expect to pay a much higher interest rate. Conversely, if your credit score is in the 700s or 800s, there will be more loan products available to you and your RV loan rates will be much more competitive.Borrowers with lower credit scores can expect a higher RV loan interest rate or the request for a larger down payment from the lender.
How much RV can I afford?
Check out aRV loan calculator, to see how much RV you can afford. Affordability will be based on things like your income, credit score, debt-to-income ratio, purchase price of the RV, loan term, and interest rate. When you see the estimated RV loan monthly payment, remember that it doesn’t include insurance, parking or storage fees, maintenance, repairs, fuel, or license. So, make sure there is room in your budget to allow for these extra expenses.
The lender will take a look a your overall financial profile including your debt-to-income ratio to ensure that you can afford to purchase the RV and keep up with the monthly payments. Our RV loan calculator is a great place to start when you’re RV shopping.
Can I purchase an RV with bad credit?
You can purchase an RV with bad credit, but you probably won’t qualify for RV loans if you have bad credit. If your credit score is below 680, you may need to pay cash for the RV, work out an owner financing arrangement with the seller, or put down a large down payment. Other options may include taking out a personal loan, getting a loan from your credit union, or using RV dealer financing. Some RV loans may allow a qualified cosigner but the cosigner would have to meet the lender’s criteria and agree to be responsible for the loan.
Keep in mind that some lenders won’t work with you at all if your credit score is below 680, so it may be advantageous to raise your credit score first and thenapply for an RV loan. The best interest rates and terms are reserved for the most credit-worthy borrowers. So, having a higher credit score will save you money over the term of the loan.
What are the best RV loan terms?
RV loan terms vary in length, anywhere from 10 to 20 years. There isn’t really a ‘best’ when it comes to RV loan terms. It’s all relative to your financial situation, the year of the RV, and the loan amount. If you have the extra money budgeted for larger monthly payments, and don’t want to pay additional interest, then a shorter-term RV loan may be better for you.
Conversely, if you’re buying an expensive RV or motorhome, and want the cheapest monthly payments available, then a 20-year RV loan term may be more suitable for you. When youapply with Trident Funding, they will go over different RV loan terms,interest rates, and monthly payment options with you.
Can a high credit score save me money when financing an RV?
Having a high credit score to finance an RV or motorhome will save you money in a few different ways. Firstly, you will get access to the best rates, terms, discounts, and the lowest-fee RV loans. You may also be able to choose your loan term, and your down payment requirements may be lower.
For example, if you can afford the higher monthly payment of a 10-year loan term, instead of a 20-year loan term, you can potentially save thousands of dollars in interest because you will be paying off the loan over a shorter period of time.
However, the main way that you save money on an RV loan is with a lower interest rate. Assuming that you have a high credit score, and get a 5.25% rate on a $200,000 RV loan, with a term of 20 years, you will have paid a total of $323,445.20 for the RV over the 20-year term. This only includes principal and interest and is only applicable if you have a fixed rate loan.
Now, let’s assume your credit score isn’t great, and you get a 9.0% interest rate on the same $200,000 loan. You will have paid a total of $431,868.46. That means that a borrower with a higher credit score will have spent $108,423.26 less than the borrower with the lower credit score. That’s a huge amount of money that could be invested or even used to buy another boat!
How much do I have to put down on my RV loan?
Most RV loans require a down payment of 10% to 20%. For example, if you’re purchasing an RV for $75,000, you may be asked to put down $7,500 to $15,000. The down payment requirements vary based on the loan amount and the borrowers qualifications. Feel free tocontact one of our knowledgeable loan officersto help answer any questions you have regarding RV loan down payments. Trident Funding also offers zero down RV financing for loans up to $70,000.
