How long you can finance a camper depends mostly on how much you borrow. Most camper and RV loans run anywhere from 5 to 20 years: loans between $10,000 and $50,000 usually come with terms of 5 to 10 years, while larger loans of $50,000 or more may qualify for 15 to 20 years. Smaller campers, older campers, and unsecured loans tend to get shorter terms.
Whether you’re eyeing a compact pop-up camper or a full-size travel trailer, here’s what to know about camper loan terms, rates, and how to choose the right loan length for your budget.
A camper is a type of recreational vehicle (RV) designed to provide a mobile living space. Campers come in various forms, including travel trailers, fifth wheels, pop-up campers, and truck campers. They offer different levels of comfort and amenities, such as sleeping areas, kitchens, and bathrooms, making them ideal for camping trips and extended travel.
While the terms "RV" and "camper" are often used interchangeably, they have distinct meanings:
RV (Recreational Vehicle): This is a broad term that includes all types of vehicles designed for recreational use, including motorhomes (which have an engine and can be driven) and towable units like travel trailers and fifth wheels.
Camper: Typically refers to towable units that need to be hitched to a vehicle, such as travel trailers, pop-up campers, and truck campers. They do not have their own engine.
The most important thing to keep in mind about recreational vehicles is that they are not considered a necessity. This means that lenders usually consider these loans to be riskier than a standard auto loan. Understanding these differences is important when considering financing options, as the type of RV or camper can affect loan terms and eligibility.
What is an RV Loan?
An RV loan is a type of secured loan specifically designed to help you purchase a recreational vehicle, such as a camper, travel trailer, or motorhome. Your RV acts as collateral for the loan, meaning the lender can repossess it if you default on the payments. Alternatively, you can opt for an unsecured personal loan, which doesn't use the RV as collateral but typically comes with higher interest rates.
Secured RV Loans:
Secured loans are often offered by dealerships, credit unions like First Alliance Credit Union, and online lenders. These loans usually come with lower interest rates and longer terms, sometimes extending up to 20 years. However, they require the RV as collateral.
Cons:
Unsecured RV Loans:
Unsecured loans don't require collateral, making them a flexible option if you don’t want to risk your RV. These loans are typically easier to qualify for if you have good credit.
Pros:
Cons:
The process of securing an RV loan is similar to that of a car or home loan. Lenders will evaluate your creditworthiness, income, and debt-to-income ratio. The type, age, and condition of the RV also play a significant role in determining your loan terms.
Key Factors:
Credit Score: Higher scores typically secure better rates.
Income and Debt: Lenders assess your ability to repay the loan.
RV Specifications: Age, type, and condition of the RV impact loan eligibility and terms.
Finding a camper you love is one decision; choosing a payment you can live with is another. Camper financing terms vary based on how much you borrow, your credit history, and the age and condition of the RV. The lender’s requirements and whether you choose a secured or unsecured loan also help determine how long you can take to repay it.
A longer term spreads repayment over more months, which can lower your monthly payment, but you’ll generally pay more interest overall. A shorter term means larger monthly payments, but it can reduce your total borrowing cost. As you compare options, leave room in your budget for insurance, maintenance, storage, and the trips you’re planning. The goal isn’t simply to find the longest term available; it’s to choose a repayment timeline that fits your everyday life.
The biggest factor in how long you can finance a camper is the size of your loan. Here’s what typical camper and RV loan terms look like:
| Loan Type or Amount | Typical Loan Term |
| $10,000 to $50,000 | 5 to 10 years |
| $50,000 and up | 15 to 20 years |
| Unsecured RV loans | 5 to 7 years |
| Secured RV loans | Up to 20 years |
Keep in mind that every lender sets its own limits, and older or towable RVs may only qualify for shorter terms. Even when you qualify for a longer term, it’s worth choosing carefully. While longer terms can lower monthly payments, shorter terms reduce the total interest paid, helping you own your RV outright sooner.
The type of camper you choose affects your loan term mostly through its price. Here’s how it usually plays out:
Current Rates: Rates vary widely based on your credit profile, the loan term, and whether the loan is secured or unsecured. At First Alliance Credit Union, Boat and RV loan rates start as low as 5.74% APR for terms of 12 to 36 months and 5.99% APR for terms of 37 to 60 months, based on your credit. You can compare current rates on our auto loans page.
Current Rates:
As of 2024, RV loan interest rates can start around 8% for those with excellent credit. Rates can vary widely based on your credit profile and whether the loan is secured or unsecured.
Loan Terms:
Secured Loans: Terms can extend up to 20 years, especially for larger loans on newer models.
Unsecured Loans: Across lenders, terms can extend up to 20 years, especially for larger loans on newer models.
Check Interest Rates: Used campers might attract higher rates than new ones. Make sure to shop around for the best deals.
Consider Loan Terms: Secured loans for used RVs might have shorter terms compared to new RVs, so plan your budget accordingly.
Down Payment: A significant down payment can lower your monthly payments and interest rate.
Use an RV Loan Calculator:
Tools like the RV loan calculator available at First Alliance Credit Union can help you estimate your monthly payments and overall loan cost. Input the loan amount, interest rate, and term to get an idea of what to expect.
Credit Unions: Credit unions often provide competitive rates and terms for their members. They are typically more flexible and offer personalized service compared to larger banks.
Online Lenders: Online lenders can offer quick funding and a wide range of loan products. Be sure to compare rates and read reviews to ensure you're getting a good deal.
Dealerships: RV dealerships often have in-house financing or partnerships with lenders. While convenient, it's essential to compare these offers with other sources to ensure you're getting the best rate.
Consider Your Budget: Ensure that the monthly payments fit comfortably within your budget. Remember to factor in additional costs like maintenance, insurance, and travel expenses.
Loan Purpose: Decide whether the RV will be for occasional use or as a primary residence. Full-time RV living might come with additional restrictions from lenders.
Credit Score: Check your credit score before applying. If your score is on the lower side, consider taking steps to improve it to qualify for better rates.
Affordable Travel: A camper allows you to travel without the need for expensive hotel bookings or eating out for every meal. You can save money by cooking your own meals and staying at affordable campgrounds.
Flexibility and Freedom: Owning a camper gives you the freedom to travel whenever and wherever you want. There's no need to stick to a strict itinerary or booking schedule, allowing for spontaneous adventures.
Comfort and Convenience: Campers come equipped with various amenities, such as kitchens, bathrooms, and comfortable sleeping areas. This means you can enjoy the great outdoors without sacrificing the comforts of home.
Quality Family Time: Camping trips can be a great way to spend quality time with family and friends. It's an opportunity to disconnect from technology and reconnect with loved ones in a beautiful natural setting.
Explore New Places: A camper allows you to explore remote and scenic destinations that may not have traditional accommodations. You can enjoy breathtaking landscapes, national parks, and off-the-beaten-path locations at your own pace.
Yes. First Alliance Credit Union offers camper and RV loans with terms up to 60 months and competitive rates for members. Whether you choose a secured or unsecured loan, the key is to compare rates and pick a term that fits your budget. If you’re still learning the basics, our guide to RV financing covers credit scores, down payments, and what lenders look for. For personalized advice, stop by one of our Rochester branches or reach out to our lending team online. Happy camping!