RV Loan Credit & Underwriting Basics

Factors used by recreational vehicle lenders in approving your RV or Motorhome loan.

When choosing your new or used RV financing source, it's important to understand the terms used by the financing companies when evaluating your merit as a potential loan customer. The following information outlines some of the most basic criteria used by RV lenders in underwriting a typical loan.

This is not meant to be a comprehensive list of RV loan underwriting procedures, but just enough information to help you understand what most recreational lenders consider when looking at factors used for loan approval.

Our financing programs are designed to compete with and even exceed the programs available through your local bank, savings and loan, finance company, credit union or motorhome dealer.

Credit History

Prior to your approval to finance a new or used motorhome, your lender will check your credit on one or more of the three major credit bureaus. You may wish to obtain a copy of your credit report and check it for accuracy before applying for a loan.

Reviewing your credit report allows you to expose mistakes or misinformation in your report that you can correct before applying for a loan. You can obtain a copy of your credit history by contacting these companies, however, a fee is charged for their services. The three main credit reporting agencies are:

Experian (800-397-3742)
Trans Union (800-888-4213)
Equifax (800-685-1111)

FICO scores

Fair Isaac and Company developed what is known as a FICO score to determine the probability that consumers will pay their loan payments in a timely manner. FICO is an abbreviation for the above-mentioned company. These scores are a universal means of establishing a rating of your creditworthiness.

Your FICO score is indicated by a number that can be evaluated by lenders when deciding whether or not to approve your loan. This number can reflect your time on the job, timely or late payments, length of credit history, amounts of previous loans as well as your time of residency and time on your job. It can also show damaging factors such as bankruptcies, collections, and charge-offs.

How can Best Rate Help with YOUR RV Loan Approval?

Our financing programs are designed to compete with and even exceed the programs available through your local bank, savings and loan, finance company, credit union or motorhome dealer. Our wealth of national lenders offer the most competitive rates for your loan. We check the rates of each of our lenders daily and research each of their loan programs.

RV dealerships can also provide lending assistance as well as additional services such as extended service contracts. In almost every case, our rates on motorhome loans will be lower than the dealer is willing to offer. Our rates on extended warranties are normally much lower as well.

Our loans are normally approved within a day after your application is received. Refinancing is also available.

Which type of program is best for you?

When choosing a lender for a motor home or RV financing program, you should select a loan program that will work best for you. Our loans programs are available at both fixed and variable rates. A fixed rate will remain the same for the duration of your term, while variable rates will fluctuate with the as interest rates rise and fall.

Normally our lenders require a minimum of 10% - 15% down payment. On loans over $100,000, we can provide terms of up to 20 years. On loans from $50,000 to $99,999, we can provide terms from 15 to 20 years. Since most RV owners have a traditionally low delinquency rate, your payment schedules and terms are normally more flexible than with other types of borrowers.

If all this sounds confusing (it is), just give us a call and we'll be happy to help answer your questions, and hopefully save you some time and/or frustration.

Which Type of Financing is Best?

If you want EASY? Let the dealer handle it.
If you want the BEST RATE? Do a little work.

Sure you will have to do a little more work, but if you break down your long-term savings into the actual time you have spent researching and completing your RV loan... You could be making a VERY short-lived hourly wage roughly equivalent to that of a Wall Street CEO.