How To Finance A Mobile Home: Park or Drive Here

RV Camper Car at the Mediterranean Sea in Sardinia.

The recreational vehicle industry broke records both in dollars spent on new RVs and units sold in 2018, following a record 2017. Perhaps not coincidentally, many RV segments saw price drops between 2014 and 2019, according to the Recreational Vehicle Industry Association, and sizes are trending down, as well.

says National Marine Manufacturers Association president Frank Hugelmeyer, who spent four years leading the RVIA. As for 2022, the RV Industry Association President & CEO Craig Kirby claims that after a record-breaking 2021 their forecast shows another very strong year for the RV industry. It’s no surprise if you want to jump in on the trend yourself. So let’s look at some RV financing options.

Ways to Finance Your Mobile Home

Some dealerships offer financing on-site. As with automobiles, they may carry the note themselves but must partner with an outside lender to make things easy and help close the deal before the buyer has a chance to change their mind. Most are typical term loans – a fixed interest rate for a set amount of time, paid monthly until paid in full. The RV acts as collateral, just like any other new vehicle would. If you fail to make your payments, the lender has the right to repossess your RV.

If you have a strong credit score, dealer financing might be a reasonable way to go. That doesn’t mean you should take the first thing they offer you, however. You might be able to secure better terms through your local bank or credit union or by utilizing an online lending marketplace like Loanry. We just happen to know quite a few reputable online lenders who love offering competitive rates or flexible terms in order to secure new business, and we’re happy to connect you with them with absolutely no cost or obligation.

Multiple RV manufacturers mean better quality, more variety, and lower prices – that’s the nature of the modern free market. The world of lending is not so different.

What about Bad Credit?

If you need RV financing for bad credit, online lenders are almost always your best choice. You’ll be applying for a personal loan designed for folks with lower credit scores or other credit history issues. The reason these are often considered an entirely separate type of loan is their source. Some traditional financial institutions will offer bad credit RV loans, but they’re largely the specialty of online lenders who specifically serve borrowers with poor credit.

Benefits of using an Online Personal Loan.

These lenders will look at your credit history and scores but are more likely to consider your current situation as well – your job, your reliable income, how long you’ve lived in once place, etc. Remember, too, that as you pay on your RV loan, you’re building and strengthening your credit score and credit history. Next time you need financing, you’ll have even more options – and on even better terms!

Wherever you finance a mobile home, you should try to make a down payment of at least 10% – ideally something closer to 20%. Some lenders will make bad credit camper loans with a smaller down payment or no down payment, but that means much higher monthly payments and more interest paid over the life of the loan.

If you know you may have trouble qualifying based on your credit score or credit history, be prepared to document your current income and job history. Lenders who specialize in poor credit RV financing may consider your debt-to-income ratio and other factors instead of relying exclusively on your credit rating. If you still have difficulty, consider delaying your purchase until you can raise your credit score and save money for a larger down payment.

Personal Loan Option for Buying RV

Another option to finance a mobile home is a personal loan. A personal loan for an RV is unsecured – you’re not using the RV or any other property as collateral for the loan. This is especially common with used RV loans where the value of the RV could fall below the balance owed on the loan at some point along the way. Because it’s unsecured, you may find it more difficult to qualify for this sort of loan. You should also expect higher interest rates. On the other hand, you can use these sorts of camper loans for a much wider variety of things related to your RV – repairs, maintenance, storage, park fees, etc. Like personal loans, their use is entirely at your discretion.

Let’s Talk Budgets

Next, sit down and be honest with yourself about your budget. If you don’t already have a workable household budget, stop everything and do this first. This should NOT become a consideration only once you decide to finance a mobile home! If you already have an effective household budget, you can skip to the next section. Otherwise – and be honest, here – you really need to stay with me for a few more paragraphs. I promise we’ll get back to the shiny new RVs in a moment.

On paper or a computer spreadsheet, list all of your monthly income, in detail. Next, list all of your monthly expenses. This usually means pulling up the last few months of utility bills, digging through your check register or online statements, etc. It’s essential that you know exactly how much you make each month and how much you spend. Even more importantly, you should know where your money goes – every dollar, every time.

At the moment, you’re looking at your budget to see how much you can realistically afford on monthly payments if you do finance a mobile home. Financing is about more than the size of the monthly payments – there are other factors we should care about as well. But the most basic consideration before you finance a mobile home is whether or not you can pay for it. If not, we should be looking at other priorities and come back to this one when it’s more practical.

Reasons for Recreational Vehicle Loans

There are a number of reasons why you could use an RV loan.

  • Payments: If you have already financed your RV, payments could be straining your budget. However, getting a personal RV loan can help make the payments more affordable so these payments aren’t a strain.
  • Purchase Loans: Purchasing an RV can be a big investment. There are different options when you are financing an RV and you will have to find the one that works best for you. Banks can offer RV loans that are similar to car loans, but these often require the best credit. RV loans can be an easier way to purchase an RV if your credit isn’t as perfect. There is also more flexibility with these loans.
  • Bad Credit: Even if your credit is bad, you don’t have to give up your dreams of owning an RV.
  • Park Fees: If you spend a lot of time on the road or decide to live in your RV year-round, the park fees for an RV can be a big expense. If your budget is tight and you need some help paying for these fees, then a loan may be able to help. A personal RV loan is flexible so you can use it to pay for these fees.
  • Repair and Remodel: RVs will need care. Even with the best maintenance, your RV may still need repairs at some point and insurance may not cover the cost. If you want to remodel part of your RV, it can also come as an additional expense. Use a personal loan to pay for these expenses.
  • Rental Loans: If you aren’t sure if the RV life is for you, you may want to rent one for a trip to test it out. If you need help with the payments, consider an RV loan.
  • Storage: When you aren’t on the road, you will have to figure out where to keep your RV. If you don’t have space in your driveway or garage or live in a place where you aren’t allowed to park RVs, you will need to find storage. If you don’t have room in your budget for storage fees, then a personal loan may be the answer.

Shopping for an RV In Stages

If you’re already an RV-owner, or you’ve leased a motorhome before, or even traveled with friends in a recreational vehicle, you may already know what you want in an RV and what you can live without. If you’re new to the world of RVs, however, it might be worth doing a little pre-shopping to familiarize yourself with the options before you start narrowing down your choices – and definitely before you start worrying about how to finance a mobile home purchase.

1. Get All The Information From The Dealers

I suggest checking out a few dealers in your area. Be honest about what you’re doing – trying to get a lay of the land, as it were. Most of them will be happy to educate you about various features and options, and knowing you’re an RV-newbie will help them focus on models and information suitable for your needs. You can also do some online shopping at this stage. Dealer or manufacturer websites are great for foundational information. There are also motorhome lovers and online groups who love sharing their opinions with anyone who’ll listen.

2. Be Patient and Find The Best Offer

Don’t get overwhelmed. You’re just getting ideas and learning some basics. There’s not going to be a multiple-choice exam or anything. Obviously, RV dealers would like for you to purchase from them eventually, but they also want you to be happy with what you buy when you’re ready. This is an industry known for thinking long-term; if you’re going to finance a mobile home from them, they want you to enjoy it enough to come back to them when you’re ready to move up or recommend them to their friends and family.

Inside of an RV

If you’re still uncertain, consider leasing an RV for a short time to see how you like it. Think of it as a “try before you buy” opportunity. If you live near any of the better-known RV parks, go crazy and take it there while you’re at it. You might as well get a feel for the whole motorhome world before you dive the rest of the way in!

Things to Avoid with Recreational Vehicle Loans when Financing a Mobile Home

When you are purchasing an RV there can be a lot to consider. It’s a serious investment and purchasing one does mean budgeting for years for payments, along with travel-related expenses and monthly costs. One of the keys to getting recreational vehicle loans is to make sure that the purchase will fit comfortably into your budget and routine. RV ownership can be a lifestyle change so people should be prepared for that.

Taking Price at Face Value

Just like other luxury items, there is a markup when it comes to RVs. Dealerships will expect you to haggle. In additional to dealerships, there are sites that can give you an idea of any RV deals and prices. Be sure to do your research so you can get the most value when purchasing an RV. If you are able to lower the price, then you can get a lower amount for the loan or have some money for other maintenance expenses without causing too much strain on your budget.

Not Looking at Your Credit Score

Your credit score is an important part of the loan terms and interest rate you will get. You should check your credit score before applying. A good credit score, which is something in the mid 700s, will give you the best rate.

If you have a lower score, you can still qualify but you will end up paying more. Interest rates can vary between different states, but some interest rates can get as high as 24%. RV financing is similar to financing a different type of vehicle, but there are different options when it comes to RVs. You could claim an RV as a residence, whether it’s primary or secondary. This can help lower your taxes.

Overestimating What You Can Afford

RVs tend to cost more than regular vehicles, so a loan can look more like a mortgage payment instead of a typical car loan. You can use a personal loan calculator to estimate your monthly payments and interest.

This can help you estimate the cost of ownership. It’s important to not just think about the payments but the overall cost, including taxes and registration fees. Some other costs include utility costs, storage fees, maintenance costs, and mileage rates.

Taking the First Loan Available

As with any loan, you don’t want to settle for the first offer you get. Some RV loans have a 20-year term, which can seem like it’s more affordable than it is. Be sure to research your options so you can pick the right loan for your budget and still get the RV you want.

Owing More than the Future Sale Price of the RV

A new RV can depreciate in value quickly just as other vehicles can. There is a high risk of being upside down on this loan. This means that is more is owed on the loan that it is worth. In order to avoid being upside down, it helps to make a large down payment.

This way you will owe less if you want to sell your vehicle in the future. Another strategy is to start small and build up to having a bigger RV. If you buy a lower priced model at first, you can easily pay this off and then be able to trade it in for an improved model later.


RVs aren’t for everyone, but until you’ve explored the possibilities, you don’t know for sure whether or not RVs are for you. It’s essential to know your options and think about what’s important to you before you make a final decision.

Financing RV is the same way. Until you know your options, you don’t have enough information to make the right decision for you. As it turns out, that’s something we can help you with – whenever you’re ready. What you decide after that is, of course, entirely up to you.


Frugal Living By Taking The RV Route

Are you interested in traveling across the US? Have you ever thought about just selling everything you own and spending the rest of your life traveling? I know a few people that have done it. They sold their house and most of their possessions and bought a recreational vehicle aka RV. They spend their time traveling across the country and stopping along their way to visit friends and family. It is an interesting life, if you can manage it. It is definitely frugal living once you get used to it.

Do not get me wrong, the RVs of today are not like the ones that you remember as a kid. Many of them are upscale and luxurious, but still, it is a life style that takes some getting used to. If you are interested, keep on reading and I will explain more about living or vacationing a little more frugally in a RV.

What Is an RV?

A RV is typically the same thing as a motorhome. You may hear or use those words interchangeably, but there are some distinctions between the two. The term recreational vehicle is used to describe anything use for recreational purposes, such as a trailer, motorhome, or something similar.

A motorhome is a vehicle that has equipment, such as a kitchen, beds, and storage, inside so that you can live in it. You are able to drive the entire vehicle, so that it is not towed behind you with a truck. It is essentially a house on wheels. Ok, maybe more like an apartment on wheels that you can take with you wherever you go.

There are benefits and negatives to RV living. In some ways, it is a more frugal living. However, you can buy some really luxurious and expensive RVs, which may make them a little less affordable.

An RV interior.

Can I Live in a RV?

You can absolutely live in a RV, if that is the type of frugal living you want. There are certain details you need to embrace if you want to live in a RV. You should consider that RV living is not the best way to live when you have children or pets. Although it’s not impossible. And you must be comfortable with living in limited space so you must make sure the motorhome you select has a living space that is big enough for your needs. You also want to make sure your motorhome has everything to meet your needs. Consider obtaining an all weather motorhome to make sure it can withstand various temperatures so you can remain comfortable no matter the weather or location.

Some details you should keep in mind about each of the different models of motorhomes.

Class A motorhomes come equipped with perks such as kind size beds, washers and dryers. They can even hold cars under the unit, or you can tow a car behind the motorhome. One downside about a Class A model is you cannot park it everywhere. They are large and many places cannot accommodate their size and hook ups.

Class B models are often referred to as campers and are often basic, especially when compared to a Class A. You can add extras, like bathrooms and extra sleeping compartments, to make it more comfortable. The base camper can be a Mercedes Sprinter, Ram Promaster, or Ford Transit. They often come with four wheel drive and can fit into a parking space. You can park them in most places and are easy to drive.

Class C models tend to have slide outs to make them more spacious. They have separate bathroom space, but tend to be too small to tow a vehicle behind it.

Can I Vacation in a RV?

Instead of home on wheels, you can have a hotel on wheels, as long as you do not mind driving your hotel. No matter if you are planning a short trip for the weekend, or a longer drive across the country, a RV could be the answer for you. You are in complete control of where you go and how long it takes you to get there.

Renting a RV for travel is also a great way to travel and have a frugal living, as you can automatically cut out the cost of a hotel. You have to get used to a smaller space, but that is a small price to pay. Todays RV comes with an onboard generator, a washer and dryer, bathroom facilities, including a shower, air conditioning, a refrigerator, a microwave and a gas cooktop. You can get upgrades in your RV such as an ice maker, advanced home theater systems, and more storage.

There are a large amount of vacation spaces where you can stay in a RV. There are spread out throughout the country. When you are planning your trip, make sure you have RV resorts planned out where you want to stop. Many resorts where you can park a motorhome have a lot of perks. You often have to pay to get into the resort or park and may have to pay a daily rate for space, but the cost is usually reasonable. Many RV resorts have areas for dogs to run and play. They have gyms and outdoor dining, along with fire pits. Often resorts have events with live music and areas for activity. Some resort areas have swimming pools and clubhouse

Can I Save Money With a RV?

You can travel on a frugal living and cut your costs in half if you rent a RV. Let me show you the numbers to prove it.

It can cost you $250 a day to rent a RV, then you should add $50 per day for insurance, which costs you $2,100 for a week. It may cost you $5 to get into the RV resort or park, then $25 per day to rent a space and have hookups. That brings the cost for staying at the resort to $180. So far, your total is $2,280.

Since you are cooking your own food in your RV or on a grill, that brings your food costs down to $40 per person per day, making the total $1,120. Your total has gone up to $3,400. An additional cost that comes with a RV is gas. Motorhomes get fairly low gas mileage, so I am going to have to use some averages to highlight this number. If the motorhome gets 10 miles to the gallon and gas costs $4.00 a gallon and you drive 250 miles, the one way cost is $100. If one way cost is $100 then it will cost $200 to drive both ways.

Your total cost is now $3,600. If you do not leave the resort area, you should not have any additional activity costs, but you should account for souvenirs or other rental costs. If you account for $50 per person per day, the total is $1,400. That might be a little high, but I padded the cost because it is better to over budget than to over budget. Now, your total cost is $5,000. If you compare the total cost with average cost of booking a flight, travel, accommodation, food, activities etc., you’ll quickly see how traveling in an RV pays off.

The cost of owning an RV

What Is a Recreational Vehicle Loan?

While living in a RV can save you money in the long run, they can be expensive to purchase. You may need to take out a recreational vehicle loan, or maybe even used RV loans. If you want to start on your way to frugal living, you may need to spend a little more money up front to save a lot of money in the end. You may hear of RV loans referred to as travel loans, or motorhome loans, but they are all personal loans. A personal loan is when you borrow money from a lender. The lender can be a bank, credit union, online lender, or even a friend or family. When you borrow the money, you make the promise to repay with a regular monthly payment.

The lender charges you a fee, called interest, for allowing to borrow money from the lender. The interest rate that the lender charges is based on your credit score. Typically, the lower your credit score is means the higher your interest rate may be. This leads to a higher monthly payment for you. I am sure it goes without saying that the more expensive the RV costs means that your loan amount is higher and so is your monthly payment. It is important that you understand how much your monthly payment is going to be so that you know if you can afford to pay the monthly payment amount.

Why Should I Get an RV Loan?

Aside from being able to live a frugal living, there are many other benefits to obtaining a RV loan. As long as you can afford the monthly payments, obtaining a RV loan is a way that you can get a RV even if you cannot afford to pay for it all at one time. You may be able to get a loan to buy a RV that is similar to a loan you get to purchase a car. That means that the RV may become collateral. If something happens and you cannot afford to pay your loan, the bank can take your RV. This may help you obtain a loan if you do not have the best credit.

You can use a RV loan to pay for repair and maintenance. RVs require a lot of maintenance, even when you take the best possible care of your RV. It will always need some type of care and maintenance. The costs can be high and you may need some quick money to pay for the repairs. You may need extra money to pay for a park and storage. If you travel often or live in your RV, the park fees add up quickly and become expensive. If you do not use your RV as a home, you need to consider storing it, especially if you do not have space in your driveway or in front of your house. Storage fees also add up quickly, especially if you have a larger sized RV.

Make sure you go to a credible lender for your loan. The last thing you want to do is get scammed! Loanry helps you find reputable lenders and makes the application process a bit easier.


How Does My Credit Impact a Loan?

Your credit score impacts your loan and just about everything else in your life. If you are attempting a frugal living, you want to make sure that you maintain a good credit score. If you think that your credit score does not have a huge impact on your life, think again. You credit score impacts your ability to get a loan, a house, insurance and even a job. Credit scores range from 300 to 850 points. A credit score of 700 or more is considered a good credit score. Once you start to fall below 650, you are getting into the fair to bad range.

The average person’s credit score is between 600 to 750. It is hard to get and maintain a good credit score. Unfortunately, it only takes one or two mistakes for your credit score to begin going down. The reason for most credit scores dropping is late or missed payments. Having more knowledge about your credit report and credit score makes it easier for you to get the loan you want.

You are entitled to a free copy of your credit report. You should look at it every year and verify the information contained on it. Your credit report shows a listing of all of your credit activities. It shows your payment history, current and past debts, and indicates how you use your debt. Also, it lists late or missed payments, as well as any on which you have defaulted. It helps lenders decide if they should let you borrow money.


What if I Have Poor Credit?

While having poor credit is not great, it is also not the end of the world. Before you start thinking the worst, is it possible to get RV loans for bad credit. It may be a little more challenging, but it is not impossible. I will tell you that if you have bad credit, you may be forced into frugal living because you might not be able to get loans you can afford. If you already know that you have bad credit, you are armed with some knowledge. Knowledge is always a good thing because the more you know, they better able you are to make educated choices. If you are trying to get RV financing for bad credit, it is helpful to be honest with any potential lenders. Many of them are willing to work with you, but you have to be upfront with them about your situation.

If you know you have bad credit, you should work hard to improve it. It is possible to improve, but it does take consistent effort. Since one of the top reasons your credit score could be low is due to missed or late payments, you should make every effort to make all payments on time moving forward. Once you make six payments on time, you begin to see an increase in your credit score. That may seem like forever, but that is what it takes consistent work. You should make every effort to decrease your debt because that increases your credit score and helps relieve stress for you. You may want to consider getting a part time job or a side jobs to bring in more money to pay down your debt faster. This can also help improve your debt to income ratio, which can also increase your credit score.



Maybe you really do not want a frugal living. Maybe you just want to buy an RV to travel across the US. No matter what your goal really is, you need to have a clear idea of it. You need to make sure it is your goal and that it is achievable for you. Most of us are willing to work hard for the things we really want.