Most RV loans range from 10 to 15 years, but you can finance an RV for up to 20 years if the loan amount is $50,000 or more and the RV meets the lender’s collateral requirements. Shorter terms of 5 to 7 years are also available, particularly for smaller loan amounts or older used models. The term you actually qualify for depends on the loan amount, the type of RV, its age, and your credit profile.
What Determines Your Maximum Loan Term
Lenders don’t offer 20-year terms to every borrower on every RV. The single biggest factor is the loan amount. Most banks, credit unions, and specialty RV lenders reserve their longest terms for loans of $50,000 or more. Below that threshold, you’re more likely to see maximum terms of 10 to 15 years. For smaller loans under $25,000, terms often cap at 5 to 7 years, similar to a standard auto loan.
The type of RV matters too. A new Class A motorhome costing $150,000 will qualify for longer financing than a used pop-up camper worth $12,000. Lenders evaluate what they call “qualified collateral,” which simply means the RV holds enough value over the life of the loan to justify the risk. Higher-value units like Class A and Class C motorhomes and newer fifth-wheels tend to qualify for the longest terms.
How RV Age Affects Financing Length
If you’re buying a used RV, expect shorter maximum terms. Some specialty lenders will finance RVs up to 20 model years old, but the older the unit, the shorter the term they’ll offer. An RV that’s already 15 years old is unlikely to qualify for a 15-year loan because the lender doesn’t want to carry a 30-year-old asset as collateral at the end of the repayment period.
Mileage plays a role for motorized RVs as well. A used Class C with 80,000 miles on it will face tighter restrictions than a low-mileage unit of the same age. If you’re shopping for a used RV and hoping for a longer term, focus on newer model years with lower mileage to give yourself the best shot at favorable terms.
Where to Get the Longest Terms
Specialty RV lenders and large credit unions are typically the best sources for longer loan terms. Banks that focus specifically on recreational vehicle financing understand the market and are more willing to write 15- or 20-year loans on qualifying units. Credit unions can be competitive too, though federal credit unions face a general regulatory limit of 12 years on most consumer loans. They can extend to 20 years only when the loan is for a mobile home used as a primary residence, which doesn’t apply to most RV purchases.
Dealer financing is another option. RV dealerships work with lending networks and can sometimes offer extended terms, but it’s worth comparing their rates against what you’d get by applying directly with a lender. Dealer-arranged financing is convenient, but you may find a better rate or more flexible terms on your own.
The Cost of Stretching Your Loan
A longer term means a lower monthly payment, which is the main appeal. On a $100,000 RV loan at 7% interest, the difference between a 10-year and a 20-year term could cut your monthly payment nearly in half. But that savings comes at a steep price in total interest. Over 20 years at 7%, you’d pay roughly $86,000 in interest alone, compared to about $39,000 over 10 years. That’s an extra $47,000 for the same RV.
Interest rates also tend to be slightly higher on longer-term RV loans, which compounds the problem. A lender might offer 6.5% on a 10-year loan but charge 7.5% or more for a 20-year term, widening the total cost gap even further.
Depreciation Creates a Real Risk
RVs lose value fast, and that’s the hidden danger of long financing terms. A new RV drops roughly 20% to 25% in value the moment you drive it off the lot. After five years, a Class C motorhome is typically worth about 62% of its original price. Fifth-wheels lose around 45% in five years. Travel trailers hold up slightly better, retaining about 60% of their value after five years.
After 10 years, the picture gets worse. Class A motorhomes depreciate to less than half their purchase price, and fifth-wheels can lose over 70% of their value. If you financed for 15 or 20 years, you could easily spend a decade or more owing more on the loan than the RV is worth. This is called being “underwater,” and it becomes a serious problem if you need to sell the RV or it’s totaled in an accident. You’d owe the lender the difference between the loan balance and the RV’s actual value.
To reduce this risk on a longer loan, consider making a larger down payment (10% to 20% is common for RV purchases) and avoiding rolling in extras like extended warranties or accessories that inflate the loan balance without adding resale value.
When a Longer Term Makes Sense
A 15- or 20-year loan can be reasonable if you plan to keep the RV for many years and the monthly payment on a shorter term would strain your budget. Full-timers who live in their RV year-round are a good example. In that case, the RV functions more like a home than a vehicle, and the longer term reflects that reality.
There’s also a potential tax benefit for some borrowers. The IRS considers an RV a qualified home if it has sleeping, cooking, and toilet facilities. If your RV meets those criteria and you use it as a second home, the interest on your loan may be deductible when you itemize, subject to the $750,000 overall mortgage interest deduction limit. This won’t apply to everyone, but for borrowers with a large enough loan, itemizing could offset some of the extra interest cost of a longer term.
If you don’t plan to keep the RV long-term, or if you’re financing a smaller, lower-value unit, a shorter term of 5 to 10 years keeps you from paying excessive interest and reduces the chance of going underwater. Matching the loan length to how long you’ll realistically own the RV is the simplest way to avoid overpaying.