5 Best RV and Motorhome Loans

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If your family enjoys camping, buying an RV can bring a lot of joy into your lives. But they’re not cheap. The average cost of a new RV ranges from $17,000 to $140,000, depending on whether your family wants a simple truck camper or a fancy Class A motorhome. If you can’t afford that in cash, it might be worth scoping out the best RV loans so you can be ready to roll come camping season.

What Is an RV Loan?

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An RV loan is essentially a beefed-up version of a car loan. You can find them from all the same places that offer car loans: banks, credit unions, online lenders, and dealerships. RV loans are generally secured by the rig you’re buying, although unsecured options exist. Like a car loan, this means that if you default on the loan, your lender can repossess your RV. 

However, RV loans differ from car loans in a few key ways: they offer higher loan amounts, with longer term lengths and higher interest rates. RVs are larger vehicles, after all.

Here are some key differences between RV loans and car loans:

Pros and Cons of RV Loans

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Here are the important things to consider if you’re thinking about financing an RV:

Is Interest on RV Loans Tax-Deductible?

If your RV has separate areas for sleeping, cooking and a bathroom, you may be able to deduct the interest you pay on your loan from your taxes, just like your primary home. You can still claim this home mortgage interest deduction even if it’s just a fun weekend camper and not your permanent residence. There are other requirements that may apply, so consult a tax professional.

Best Motorhome & RV Loans

Financing options for RVs aren’t as plentiful as for cars, but there are still many options depending on your situation. Here are the best RV loans to consider:

• Best Credit Union Loan: Alliant Credit Union
• Best for Bad Credit: Upgrade
• Best for Larger Loans: SoFi
• Best for Competitive Rates: LightStream
• Best for Fast Funding: LendingClub

_{Loan results will vary based on creditworthiness, loan purpose, loan amount, and other factors.}

Best Credit Union Loan: Alliant Credit Union

Many people prefer to work with a credit union because of their low rates and community-focused business structure. Alliant Credit Union is available for anyone in the country to join.

Alliant Credit Union

Check Your Rate

• Loan Amounts$1,000 - $100,000
• Loan Terms12 - 60 months
• APR RangeStarting at 11.49%
• Minimum
  Credit ScoreNot Disclosed More Info

  A credit score is used to indicate the creditworthiness of an applicant, but it is only one of several factors considered for approval. These credit scores alone are not guarantees for approval and should only be used as guidelines.

• Overview
• Pros & Cons

Overview

Alliant is a digital credit union offering flexible loan amounts that can be used for various purposes, including credit card debt consolidation, unexpected expenses, and home improvement projects. Funds may also be disbursed as soon as the same day you’re approved. Alliant borrowers benefit from perks like easy-to-meet membership requirements, no hidden fees, and competitive APRs. To become an Alliant member, you’ll need to work for a qualifying company, be related to an Alliant member, live or work near Chicago, or be a Foster Care to Success (FC2S) member.

Pros

• No origination fees or prepayment penalties
• Flexible terms available
• Fast approval and funding available (same-day deposit available)

Cons

• Credit score requirements not disclosed
• Relatively high minimum APR

Best for Bad Credit: Upgrade

If your credit isn't stellar, Upgrade can work with applicants who have lower credit scores.

Upgrade

Check Your Rate

• Loan Amounts$1,000 – $50,000
• Loan Terms24 – 84 months
• APR Range8.49% - 35.99%
• Minimum
  Credit Score560 or above More Info

  A credit score is used to indicate the creditworthiness of an applicant, but it is only one of several factors considered for approval. These credit scores alone are not guarantees for approval and should only be used as guidelines.

Borrowers with less-than-stellar credit profiles may find Upgrade personal loans accessible, and its quick funding and flexible payment due dates convenient.

• Overview
• Pros & Cons

Overview

Upgrade offers personal loans that are accessible to those with not-so-ideal credit scores. The low loan minimum of $1,000 also makes it an easy choice for those with small financing needs. However, borrowers in certain states will be subject to higher minimum loan amounts. With this lender, you can expect to pay an origination fee. Borrowers can view their rate before applying without impacting their credit score. Overall, Upgrade is worth considering if you’re looking for a lender that is willing to work with lower credit scores and offers loans with competitive rates and flexible terms.

Read the review

Pros

• Accessible to borrowers with bad credit
• Flexible loan terms
• Joint applications allowed
• Secured loan options
• Direct payment to creditors

Cons

• Has origination fees
• No physical branches
• Higher APRs than some competitors

Best for Larger Loans: SoFi

If you're looking to finance a pricier RV, SoFi has a loan maximum of $100,000, although not everyone will qualify for the maximum amount.

SoFi Personal Loans

Check Your Rate

• Loan Amounts$5,000 – $100,000
• Loan Terms24 – 84 months
• APR Range8.99% – 29.49%
• Minimum
  Credit Score680 or above More Info

  A credit score is used to indicate the creditworthiness of an applicant, but it is only one of several factors considered for approval. These credit scores alone are not guarantees for approval and should only be used as guidelines.

SoFi's personal loan offering comes with no fees required and a high loan maximum that may be a good fit for those seeking large loans.

• Overview
• Pros & Cons

Overview

SoFi offers a competitive personal loan product that boasts no origination fees, no late fees, and a high maximum loan amount of $100,000. SoFi is one of only a handful of lenders offering loans as large as $100,000. If you need a substantial loan to cover a considerable expense, like a home renovation, SoFi’s high maximum can be a strong option. One standout feature of SoFi is that it offers unemployment protection, which might allow you to pause payments if you lose your job. Same-day funding is also available for qualified borrowers

Read the review

Pros

• No origination fees, no prepayment penalties and no late fees
• Loans up to $100,000
• Unemployment protection available
• Autopay rate discounts
• Co-borrower allowed
• Same-day funding available

Cons

• No physical branches
• High minimum loan amount
• Good credit likely required

Best for Competitive Rates: LightStream

LightStream offers competitive rates and autopay discounts, making their no-fee personal loans a compelling offering for those who qualify.

LightStream

Check Your Rate

• Loan Amounts$5,000 – $100,000
• Loan Terms24 – 144 months
• APR Range7.49% – 25.49% (with autopay)
• Minimum
  Credit Score660 or above More Info

  A credit score is used to indicate the creditworthiness of an applicant, but it is only one of several factors considered for approval. These credit scores alone are not guarantees for approval and should only be used as guidelines.

LightStream is a solid online lender offering no fees, high loan maximums and low-rate personal loans for several purposes.

• Overview
• Pros & Cons

Overview

LightStream offers personal loans for several purposes, including debt consolidation, medical expenses, home improvement, weddings, car purchases and more, making this worth considering for those seeking flexibility. The lender offers relatively low rates compared to competitors, including autopay discounts. Its personal loans also have no origination fees or late fees, which can help keep borrowing costs low. However, borrowers will likely need to have good-to-excellent credit in order to be approved for a LightStream personal loan. Overall, it’s a good lender to add to your shortlist if you’re looking for flexible funding, no fees and a low APR. Lightstream may also disburse loans as soon as the same day you’re approved, making this lender a worthy choice if you need fast funding.

Read the review

Pros

• Low minimum APR
• No origination fees, no late fees
• High loan maximum of $100,000
• Autopay discount
• Joint applications allowed

Cons

• Rates and terms vary by loan purpose
• No soft pull prequalification
• Must have good-to-excellent credit
• No physical branches

Best for Fast Funding: LendingClub

LendingClub can often get your funds to you as soon as the same day you’re approved if you're in need of quick financing.

LendingClub

Check Your Rate

• Loan Amounts$1,000 – $40,000
• Loan Terms24 – 60 months
• APR Range9.57% – 35.99%
• Minimum
  Credit Score600 or above More Info

  A credit score is used to indicate the creditworthiness of an applicant, but it is only one of several factors considered for approval. These credit scores alone are not guarantees for approval and should only be used as guidelines.

Borrowers in the fair credit range who need a small loan can appreciate LendingClub's quick funding and option for direct payments to creditors with debt consolidation loans.

• Overview
• Pros & Cons

Overview

LendingClub can be a good fit for those looking to consolidate high-interest debt, as they offer the ability to pay your creditors directly from your loan. You can also use LendingClub loans for almost any purpose, from home improvements to medical bills. Eligible borrowers who need some assistance qualifying can apply for a joint loan, and borrowers can expect to receive funding as soon as 24 hours after approval. However, APRs do start at relatively higher rates than some competitors.

Read the review

Pros

• Low minimum loan amount
• Fast funding for personal loans (receive funds as little as 24 hours after approval)
• Joint loans allowed
• Direct payment to creditors
• Check rates without a hard credit inquiry

Cons

• Has origination fees
• No physical branches
• Lower maximum loan amount than some lenders

How to Choose the Right RV Loan

If you’ve ever shopped around for the best deal on a car loan, then you already know how to find the best RV loan. Here’s a winning strategy you can use:

1. Gather documentation: Check your credit report and your credit score to see where you stand and what you'll likely qualify for. If you need to dispute any errors, do so before applying for the loan. Gather your financial documents, too, such as recent copies of your tax returns, pay stubs, bank statements and copies of your ID. 
2. Check your budget: Put together a monthly budget so you know how much you can afford. Subtract your ongoing costs, like campground fees, insurance and fuel. From the amount remaining, play around with a loan calculator to see how much you can afford based on the payments, including interest and a down payment.
3. Shop around for rates and terms: Get pre-approved with as many loan lenders as you can. Your final rate may depend on the RV you want to buy, but you can get a rate quote now even before you find the right ride. Remember, the shorter the loan term, the lower the interest rate.
4. Negotiate with the seller: If you’re buying from a dealership, you can use your pre-approved offers as bargaining chips to see if they’ll offer lower rates on an RV loan. If you’re buying from a private party, do your due diligence to avoid any scams. 
5. Finalize your loan: Sign the loan documents, check with the seller and you’re all set. Don’t forget to sign up for autopay so you can cruise the roads without worrying about missing any loan payments. 

Who Should Get an RV Loan?

RV loans can open the door to many fun experiences with your family, but in some cases, they can cause more problems than they’re worth. 

If you’re thinking about financing an RV, it’s best to check if you fit the profile of a good loan applicant:

• Credit score of 700 or higher
• Debt-to-income ratio below 40%
• Have a stable income source
• Can afford to make monthly payments
• Can afford RV upkeep costs, including maintenance and insurance

If you don’t meet those criteria, it doesn’t mean that you shouldn’t get an RV loan. But it does mean you should give it some extra thought because you might have a harder time getting approved. And if you are approved, your rates may be higher than someone who meets this profile. 

In some cases, it’s better to wait until you’ve worked on your credit, paid down other debt and/or worked to increase your income.

Alternatives to RV Loans

RV personal loans can be a good choice to buy an RV, but in some cases, another option might work better:

• 0% APR credit card: If you take out a new 0% APR credit card and pay it off before the zero-interest period ends, it’s essentially a free loan. Otherwise, you'll be facing an ultra-high interest rate after the promotional period is over.
• Home equity loan: If you have sufficient home equity, a home equity loan can be a good way to get even lower rates on a loan. The downside is that if you default, you could lose your home and your RV. 
• Cash-out refinance: If you can refinance your current mortgage for one with a lower interest rate, you may be able to borrow slightly more — and use the difference to buy an RV.   

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Frequently Asked Questions

• Can you get an RV loan if you have bad credit?

  Yes, getting an RV loan is possible even if you have bad credit, as long as you’re a strong applicant in other areas. For example, you may be able to boost your approval odds if you apply with a more creditworthy co-signer.

• Is RV loan interest tax deductible?

  Your RV loan interest may be tax-deductible under the home mortgage interest deduction if your RV has three main features: an area for sleeping, cooking and a bathroom. The IRS considers this type of rig a house, even if it’s on wheels.

• Can you finance an RV as a home loan?

  Generally, no. Lenders generally restrict mortgages to traditional homes that don’t move and are affixed to a permanent foundation. Instead, most people finance their RVs with an RV loan, even if it’ll be used as a permanent home.

• Is it better to pay cash or finance an RV?

  If you have the funds, paying for something in cash — including RVs is always better. However, an RV loan is often a good alternative if you don’t have enough saved to pay in cash.