Motorhome Financing: How Many Years Is Possible?

• Most buyers can finance a motorhome for 10 to 20 years, depending on the loan type and lender.
• Larger loans and newer motorhomes tend to get longer terms, but shorter terms can save you money in the long run.
• Your credit score, down payment, and current interest rates heavily affect your loan options and costs.
• Buying a used motorhome? Expect stricter limits on loan length and higher rates.

If you want to know how long you can finance a motorhome, the simple answer is you often get between 10 and 20 years. It is rare to see a traditional bank or credit union offer something longer than 20 years. Sometimes, you run into 5, 7, or 12 year loans. The exact length depends on your RV’s age, price, your financial profile, and what the lender is comfortable with. But there’s more to consider than just the numbers. Paying for a motorhome is different from a car, and a long loan can have both good and bad points. Here’s what you need to know (and what most people miss):

How Motorhome Loans Work

Motorhome financing is really just a recreational vehicle loan , similar to a car loan in many ways. The big difference: RVs cost much more and the terms can last far longer. Some lenders treat motorhomes almost like a second home. But not always. The lender will look at the value and age of the RV, your credit history, income, and sometimes even how you plan to use it.

Typical Loan Terms for Motorhomes

Banks and credit unions usually offer motorhome loans with these common term lengths:

Interest rates and loan lengths can change quickly. If you see a rate or term that fits your budget, do not wait too long to apply.

Why Longer Terms Are Common

At first, 15 or 20 years might sound too much for what is, basically, a vehicle. But think about the price. If your motorhome is over $100,000, the lender wants to make it affordable. That means spreading payments out. So longer terms lower your monthly bill. Simple. But there’s a catch , the longer you pay, the more you pay in total interest. Always check the real cost at the end of the loan.

Some RV dealers will try to push the lowest monthly payment by offering the longest term. It sounds good. But be careful: you may end up paying far more than you expect, and you can get upside-down on your loan as your RV’s value drops. That’s a risk most buyers do not think about until it is too late.

Do not just look at the monthly payment. Ask yourself, “How much interest will I pay over the full loan?”

Limits for Used Motorhomes

Buying a used motorhome? Loan terms are usually shorter. Many lenders only allow 10 or 12-year loans for motorhomes more than five years old. Interest rates are usually higher, too, unless you are buying a nearly new or late-model RV. This is mostly about risk , older vehicles drop in value faster and can need expensive repairs, which scares lenders.

In some cases, lenders set a “maximum age” at the end of your loan. For example, if a lender’s policy is the motorhome must not be more than 15 years old at the end of the term, and your model is already 7 years old, the max loan you can get is 8 years. It adds some math, but it matters.

What Affects Your Loan Term

There’s no single rule. Several things affect how many years you get:

• Credit score. Higher scores unlock longer loan terms (and lower rates). A lower score can mean strict loan caps.
• Down payment. A larger down payment can get you better terms, flexibility, and sometimes even a lower rate.
• Price and type of motorhome. More expensive and newer RVs almost always mean longer possible terms.
• Income and total debt. Lenders check your ability to pay. If the payment is too much of your monthly income, they might cut the term.
• RV age at purchase. Older models usually get shorter loans.

Lender Differences

Not every lender handles RV loans the same way. Through personal experience and talking to a bunch of RV buyers, I have noticed these common pathways:

• Credit unions often have strict age limits but lower rates than dealers.
• Banks sometimes want 20% down if you want a longer loan.
• Dealer-arranged loans can sound convenient but sometimes carry higher rates or have more fees, even at longer terms.

If you only look at dealer financing, you might miss better deals. Take the time to talk to a local credit union if you can.

Typical Motorhome Loan Examples

Let’s break down a few possible real-world examples. These numbers are just estimates, but they give you the idea:

Is a Longer Loan Always Better?

No, not always. Yes, the payment goes down, but your total paid over the loan can be much higher. Here is a quick comparison for the same $100,000 RV at 7 percent, 20 percent down:

Lower monthly payments might feel like a win, but you pay a lot more overall, and you could owe more than your RV is worth for years.

When a Shorter Loan Makes Sense

If you can afford a bit more every month, a shorter term saves a ton of money. Your RV is also likely worth more than you owe, making it easier to sell or trade. You might even sleep easier at night knowing you will not be stuck with a big RV payment into retirement.

Some lenders offer very low rates for 5-year loans. But the payments can be a big jump. It is a balancing act. I think if you plan to keep the RV for a long time, lean toward a slightly shorter loan if you can. If you know you trade RVs every few years, be cautious about long-term loans.

Tips to Get Better Motorhome Financing Terms

• Check your credit and fix any issues before you shop.
• Try to save at least 10 to 20 percent for a down payment.
• Check with at least three lenders, including a local credit union. Sometimes you get a surprise offer from the least expected place.
• Run the numbers both ways , see what your total interest is on a 10 year versus a 20 year loan.
• Negotiate on purchase price, not just the loan. Lowering the total price is another way to “shorten” your loan term.

Never agree to a financing plan at the dealer without reading every line. RV loan documents can have fees you do not expect.

Other Factors to Think About

Prepayment Policies

Watch for prepayment penalties. Not all RV loans let you pay extra without a fee. If you know your job might change, or you are likely to get a bonus to put toward your loan, confirm you can pay early without penalty.

Balloon Payments

Some “creative” loans have a balloon payment at the end. This is a large lump sum due after a set number of years (sometimes 5 or 7), with lower monthly payments up to that point. This can work if you want to refinance or plan to sell before the balloon hits, but it can also get you in trouble if you are not prepared.

Variable Interest vs. Fixed Interest

Most motorhome loans are fixed rate, but variable rate loans do exist. If you get a variable rate, your payment could go up later, which can surprise your budget if you are not watching closely. Usually, it is worth picking a fixed rate, unless you are sure you will pay off quickly.

Frequently Asked Questions

How old can the RV be to get a long loan?

Most lenders want the motorhome to be less than 10 years old for loans over 10 years. After that, the terms get shorter and the interest goes up. There are rare cases where a well-maintained, collectible RV can get special financing, but it is rare.

Should I use a home equity loan for my motorhome?

I would think twice about this. The rates are sometimes better, and payments can be spread out for decades. But you risk your house if you cannot pay. It adds stress, and for many people, it is too much risk. Sometimes, using home equity makes sense for someone with a lot of income stability, but, for most, it is not the best idea.

What credit score is best for a long-term RV loan?

Above 700 is going to open up the best options and keep your interest rates low. You can get approved with a lower score, but expect to pay more and have fewer choices. Every lender has its own take, but, from what I have seen, high 600s is the usual cutoff for most long-term deals.

Can I refinance later if the rates go down?

Yes, many buyers do this if rates drop. But there are fees, and your RV’s value must be high enough to get a new loan. So, do not count on refinancing as your only plan. It can help, but it is not a guarantee.

What Lenders Look For Besides the Motorhome

Lenders rarely look only at the RV itself. They check your income, total debt, work history, and sometimes even your history of long-term loans. I know someone who had paid off a motorcycle and a big furniture loan, which helped her get approved for a long-term RV loan, even though her credit was just average. So, experience matters. It is not all about the numbers on the RV itself.

When Not to Finance for 20 Years

• If you might sell the RV before 5 years, the long-term loan could leave you owing more than it is worth.
• If your monthly payment is too high even at 20 years, the RV is probably too expensive for your current budget.
• If you are unsure about your income long-term, go shorter where possible. Less risk and less interest.

Key Takeaways

• You can usually finance a motorhome for 10 to 20 years.
• The term you get depends on the RV’s age, your finances, and the lender.
• Long loans cut your payment, but raise your interest. Always do the total cost math before you choose.
• Shop around. Tie your financing choices to your own tolerance for risk, not what a dealer tells you to do.