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    What to Ask about Loans for RVs

    Loans for RVs are easier than you might expect. When you want a home away from home, RVs give you the freedom to go wherever you want while still enjoying the comforts of home. You may even want an RV as a more affordable permanent home option. But no matter what you are using your RV for, you'll probably want to take out a loan for the purchase. Fortunately, there are a variety of different lenders that can help you acquire a loan for the RV of your dreams. The trick  is to find the right loan for you and your financial situation. Bank of America, US Bank and America First Credit Union are among the best places to acquire loans for RVs, and all offer great options for RV financing. Find the right loan for any RV purchase by asking the following questions. 

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    How much will my credit score affect my loan application?
    Because RVs are considered luxury items, acquiring a loan will be more difficult if you go to your typical bank. However, it will not be impossible to get an RV loan. There are some places that will except low credit scores, like RV Financing USA where you can get a loan with a minimum credit of 550, but you'll have to settle for a lower loan amount.
    How are RV loan interest rates determined?
    RV loan interest rates are determined by the amount of the loan, the length of the loan and the applicant's credit score. So depending on your current situation you may need to shop around to figure out the best rates for you. But if you have good credit and plant to pay off the loan quickly, you likely have nothing to worry about.
    Does buying a new or used RV affect my interest rate?
    Sometimes the age of the RV can affect your interest rate. RVs over a few years old can have higher interest rates than if you bought a brand new RV.
    How long will I need to pay off my RV?
    If you are buying an expensive RV you'll want to pay it off as soon as possible because of interest rates. On average an RV loan is paid off in 10 years. However, if you buy a more expensive RV you may be able to get a loan term of 20 years, but you may face higher interest rates.
    Do I want to make a hefty down payment for my RV loan?
    Generally, if you make a higher down payment for your RV loan, you will see lower interest rates afterwards, because you will be seen as less of a risk to lenders. If you can make a large down payment, you'll have an easier time making your monthly payments.
    Should I get a fixed rate or variable rate RV loan?
    A fixed rate RV loan is always the same from month to month no matter what. A variable rate loan can start off lower but is subject to change over time. It can be lower or it can be even higher than what you were paying at the beginning. Variable rate loans are the best option for people planning to pay off loan in a shorter period time, since they will face less risk of higher interest rates.
    Can my interest on an RV loan be tax deductible?
    If the RV is used as collateral and contains basic living facilities like a bathroom and kitchen, as well as a place to sleep, then the interest on an RV can be tax deductible as a second home mortgage. For more information you can contact the IRS.
    Where can I get a loan for an RV?
    You can find RV loans from almost anywhere. You can apply for loans at most banks such as Bank of America and US Bank, or credit unions like America First Credit Union. Your best bet is probably to choose a bank with which you are familiar with when it comes to accepting your application. Additionally there are a number of independent financing companies that offer RV loans.