4 min read

    How to Finance an RV In Utah

    By Wasatch Peaks on January 17, 2023

    Topics: RV Loans

    A recreational vehicle, also known as an RV or camper, gives you the opportunity to travel the country and still have all of the luxuries of home like a restroom, beds, and a kitchen for preparing meals. 

    Since RVs are a unique mixture of an automobile and home combined, financing doesn’t usually fall within the typical categories. Check out our guide below that breaks down how to finance an RV.

    What Is an RV Loan?

    An RV loan helps you finance a purchase of a new or used RV, motorhome, or camping trailer that you can’t afford to purchase outright. 

    Here at Wasatch Peaks, we offer RV financing for new or used RVs with low fixed rates and zero application fees. Our repayment terms range up to 15 years, with financing as an option at a dealership of your choice. 

    Our RV loans are secured, meaning your purchase is backed by assets you currently own in order to secure a loan from us (also known as collateral). As your lender, this protects us in case you aren’t able to repay your loan. 

    How Do RV Loans Work?

    To start the process of financing your RV, you must first submit a loan application with us so that we can review and evaluate your current finances. Your credit plays a big role in the process since it will help us determine the size of the loan, the amount of the down payment, and the interest rate. 

    We’ll also look at your income, debt-to-income ratio, employment history, and housing. Larger loans have stricter requirements and may require additional documentation.

    If you prefer getting an RV loan through a lender versus a dealership, you can get pre-approval before shopping for your RV. Smaller loans might be 2-3 years in length whereas larger ones can be 10-15 years. Interest rates are fixed so your payments will stay consistent through the life of your loan. 

    Down payments are usually required and fluctuate between 10%-20%. If an inspection is required, expect to pay around $150-$200 for it.

    While building your budget, our RV Loan Calculator is a helpful tool to determine just how much you can afford. Include the loan amount, interest rate, and the term year you’re seeking to find the monthly payment that works best for you!

    Steps to Financing an RV

    The best way to get the most competitive rate is to be prepared and compare your options. 

    Know Your Budget

    First, determine what you’re going to use the RV for. Make a list of your must-have features and research the RVs that have your requirements. Since RVs vary in size, type, and cost, evaluate if the price tag of the RV meets your needs and fits within your budget. 

    You should also consider how often you'll use the RV and where you plan to drive it. For example, if you want to explore big cities, a smaller model might be easier to navigate and park. You should also factor in the costs of maintenance, fuel, and insurance. 

    Check Your Credit

    Your credit history plays a big role in whether or not you’ll qualify for an RV loan. A credit score of 700 or higher is better in order to get the most favorable terms. However, requirements will vary depending on your lender. 

    If your score is low, you might need a cosigner with a higher score to get the loan. You can also take steps to improve your credit, such as paying down high balances or consolidating debt. 

    Your income also affects the interest rate you’ll qualify for when applying for a loan because you need to be able to show that you can repay the loan. Therefore lenders will look at the stability of your income sources as well as the amount you earn monthly. 

    When preparing to apply for an RV loan, gather your most recent tax returns, pay stubs, and other proof of income documents so that the lender will be able to validate your income. Also bring along your valid ID with proof of a permanent address. 

    Save for a Down Payment

    The more you can save for a down payment, the less you'll have to finance—so start saving well before you plan to buy the RV! Your down payment will lessen the total of the loan, thereby lowering your monthly payment and how much interest you'll pay over the life of the loan. 

    Some lenders require at least 10% of the purchase price as a down payment, while others offer more flexible terms. Saving a larger down payment can also help you qualify for a lower interest rate. 

    Ride Away With Savings at Wasatch Peaks Credit Union

    Now that you know the steps to finance your new home on the road, click below to learn more about our competitive rates. Our representatives are happy to help you find a loan that works best for you and your financial circumstances. You’re only a few steps away from making your open-road dreams a reality!

    See some of the best personal RV rates in Utah

    Wasatch Peaks

    Written by Wasatch Peaks