Recreational vehicle loans finance new and used leisure vehicles and are typically secured by the vehicle. Lenders base approvals on vehicle value, age, and borrower credit. Apply in person or online and speed approval by bringing ID, proof of income and address, and vehicle details. Compare fixed and variable rates, loan terms, and offers from dealers, credit unions, and online lenders. Use a loan calculator, confirm insurance requirements, and consider refinancing later if conditions improve.

What is a recreational vehicle loan?

A recreational vehicle (RV) loan is a consumer loan used to buy powerboats, ATVs, snowmobiles, personal watercraft, travel trailers, motorhomes, and similar leisure vehicles. Most RV loans are secured: the vehicle itself serves as collateral, which typically gives lenders lower risk and better terms than unsecured credit.

What you can finance

You can finance new and used recreational vehicles. Lenders include banks, credit unions, specialty lenders, and dealer financing programs. Credit unions often offer competitive terms for members, while dealerships may combine convenience with promotional offers.

How lenders calculate financing

Lenders usually base the loan amount on either a percentage of the vehicle's retail value or a percentage of the purchase price. They consider the vehicle's age, condition, your credit score, income, and debt-to-income ratio. Older vehicles and riskier borrower profiles generally mean higher interest rates.

How to apply and speed up approval

You can apply in person, by phone, or online. Many lenders provide instant pre-approval tools on their websites so you can shop with a clear budget.

To speed approval, bring or be ready to upload:

  • Government photo ID
  • Proof of income (pay stubs, tax returns)
  • Proof of residence
  • Vehicle information (VIN, year, make, model)
  • Purchase agreement or dealer invoice (if available)
  • A list of other debts and monthly obligations
Having this documentation ready can reduce processing time. Some lenders can complete straightforward applications within an hour; others may take several days depending on verification requirements and the vehicle type.

Rates, terms, and calculators

RV loans come with fixed or variable interest rates. Loan terms vary by vehicle type and lender; terms are typically shorter for small recreational units and longer for large motorhomes. Use a loan calculator to estimate monthly payments and total interest for different terms and down payment amounts.

Current market rates depend on broader interest-rate conditions, your credit profile, and the vehicle's age. For accurate, up-to-date rate comparisons, check multiple lenders and rate aggregators before committing. 1

Other considerations

  • Down payment: A larger down payment lowers the amount financed and may improve your rate.
  • Insurance: Lenders usually require proof of insurance before disbursing funds.
  • Refinancing: If rates fall or your credit improves, you may refinance later to lower your payment or term.

Next steps

Decide on the vehicle type, get pre-approved, compare offers from at least two lenders (dealer financing vs. credit unions vs. online offers), and review the loan contract carefully for fees and prepayment terms. With the right preparation, you can finance recreational ownership without stretching your budget.

  1. Confirm typical RV loan processing times (hours vs. days) across major lender types (banks, credit unions, dealer finance, online lenders).
  2. Confirm current typical APR ranges for new and used recreational vehicles (by vehicle type and credit profile) as of 2025.
  3. Confirm typical loan term ranges offered for different RV categories (e.g., ATVs, travel trailers, motorhomes) as of 2025.

FAQs about Recreational Vehicle Loan

Which recreational vehicles qualify for a loan?
Most lenders finance boats, ATVs, snowmobiles, personal watercraft, travel trailers, and motorhomes. Approval depends on the vehicle's age, condition, and the lender's criteria.
What documents do I need to apply?
Be prepared with a government ID, proof of income, proof of residence, vehicle details (VIN, make, model, year), and a purchase agreement or dealer invoice if available.
Should I choose a fixed or variable rate?
Fixed rates keep your payment steady over the loan term. Variable rates may start lower but can change. Compare both options and consider your risk tolerance and how long you plan to keep the vehicle.
How long does approval take?
Some straightforward applications can be completed within an hour, but verification or specialized vehicle financing can take several days. Processing time varies by lender and documentation completeness.
Can I refinance my RV loan later?
Yes. If interest rates fall or your credit improves, refinancing can reduce monthly payments or shorten the loan term. Check for prepayment penalties before refinancing.

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