back to articles | August 15, 2020 | Lauren Cordell

Categories: Tips & Insights For Car Buying Auto Loans & Financing Buying & Selling Cars Consumer Credit

Everything You Need to Know About Motorhome Financing

A motorhome is a type of a RV that was remodeled to become a mobile living accommodation. Although the primary use of RVs is temporary accommodation during traveling, some people are using it as their main home.


A motorhome is a type of a RV that was remodeled to become a mobile living accommodation. Although the primary use of RVs is temporary accommodation during traveling, some people are using it as their main home.

Besides mobility, most people are purchasing RVs to become their primary residence because of its affordability compared to buying a house and lot. Just like a house property, there are lenders offering RV lovers an option to finance their motorhome purchase.

But before you apply for motorhome financing, here are the things that you need to know.

What is Motorhome Financing?

A Motorhome, or RV, financing is a lot like a car or home loan that you acquire from banks and lenders. It is long-term financing that is used to purchase a motorhome. Most Motorhome prices range from less than $10,000 to as much as $500,000 or more for the largest motorhomes available.

Lenders offer to finance both new and used motorhomes. Banks, lenders, credit unions, and online lenders are willing to finance a motorhome for their consumers. Other motorhome dealerships also allow you to purchase a motorhome through installment loans.

Motorhomes are more expensive than cars, which is why the terms of motorhome financing are more extended than a car loan. However, loan term still varies depending on the amount that you are borrowing.

Motorhome financing amounting to $10,000 to $25,000 will have a term as short as two to three years. But most motorhome financing lasts up to 10 years, and lenders will allow their borrowers to have a loan term as long as 20 years for a loan amounting to $50,000 or more.

How Much Does a Motorhome Financing Cost?

Like a car and home loan, the cost of motorhome financing will depend on how much you paid as a downpayment and the principal amount of the loan. The lender will offer you deals based on your credit score. The higher your credit score, the better your offer will be.

If the lender offers you a low Annual Percentage Rate (APR), that does not necessarily mean that you got the best deal. A longer-term with a low annual percentage rate can cost you more than a short-term with a higher APR.

Proper Way to Finance A Motorhome

Before you rush into getting financing for your motorhome, you must first know the proper way of financing it. Written below are guides you can follow to properly prepare for the loan and ensure a smooth purchase and reasonable rate.

  • Set a Budget

    Purchasing a motorhome is a significant investment. You can get a motorhome for as low as $5,000, with a low-end towable camper type motorhome. But if you want a more high-end motorhome, it will cost you around $500,000 or more.

    Before you decide to purchase a motorhome, it is better to set a budget and do some shopping first to find the best deal. Choose a motorhome that you want without blowing your budget.

  • Save From Your Down Payment

    Motorhome companies and dealers require a 10-20% down payment. It is advised that you give a higher down payment to help lower your monthly payment. It can also qualify you for a loan with a lower interest rate.

  • Monitor your Credit Score

    It is important to check your credit score before you apply for a motorhome financing. You will likely have a great deal if you have a credit score of 700 or higher.

    Check your credit score directly from major credit bureaus as the lender will surely check your credit score from one of them. You can use a credit report site to acquire a copy of your credit report.

  • Compare Offers from Different Lenders

    If you go shopping to look for the best deal from motorhome dealers, it is also advised to look and compare loan offers from lenders. Compare all offers available and choose what best fits your needs.

    Taking time to compare all financing offers might save you money every month. Local motorhome dealers that you’re familiar with do not guarantee a best deal offer. Take advantage of technology and do your shopping online to examine other options for a hassle-free experience.

  • Negotiate

    It would be best if you learn the art of negotiating. Prepare yourself for a haggle when purchasing your motorhome. All motorhome dealers already expect a haggle from all of their customers, and you should take advantage of this opportunity.

    If you try to negotiate, there is a high possibility that you can save a few cash. But if you are good at haggling, there is also a chance that you can save more. It is just a matter of how you haggle, so start practicing your haggling skills and acquire a good discount in your motorhome shopping.

  • Decide what type of loan you want.

    You can choose between a secured vehicle loan and an unsecured personal loan to finance yourmotorhome purchase. Both of these options have their benefits. For instance, a secured vehicle loan has lower interest rates and is easier to acquire even if you have a low credit score.

    On the other hand, unsecured personal loans won't risk your motorhome to be repossessed if you fail to repay on time. It can also offer a pre-qualification and can release the funds quickly.

Who offers motorhome financing?

Most institutions who offer car and home loans will likely be the one who offers motorhome financing. These can be banks, traditional lenders, credit unions, or even the motorhome dealer itself. Banks offer versatile financing to purchase a motorhome with a competitive interest rate.

Some Credit Unions offer borrowers a long and flexible repayment term from 84 to 180 months. They can lend you as much as $250,000 without requiring you to pay an origination fee. There are many offers from various institutions. What you need to do is study each offer before choosing one.


Being familiar with what loan you are applying for is important to become aware of what to expect. Knowing everything that you need to know before acquiring a motorhome financing will help you decide and choose the right path that benefits you. That way, you wouldn’t struggle when purchasing your motorhome and repaying your loan.