RV financing stumps people. Recreational vehicle loans are available as both home loans and auto loans. A reader with poor credit asks my advice. While banks and credit unions are options, try cash.
One of our readers writes, "How do you find financing for an RV? We are ready to take the plunge to full-timing but are having trouble financing the RV purchase. We went to our credit union, but because of a bankruptcy a couple of years ago, we didn’t qualify for a loan there. Any suggestions you have are welcome."
I reply... Financing an RV can be done the same ways as both houses and vehicles...so there are numerous options. Many RV dealerships finance the rigs they sell. Most banks, credit unions, and other lending institutions also make RV loans.
Other possibilities: Money from savings, money acquired from selling household items you won’t need while full-timing, borrowing from a retirement fund, loans from friends or relatives (not recommended), charging it to a credit card, and contract-for-title arrangements with a private seller.
Full-time RVing can be a very economical way to live and we are big proponents of the lifestyle. However, I would not suggest that you go into debt to buy a rig to get started. Considering that you have a bankruptcy in your credit history, I'd suggest you skip the RV loan and buy only an RV that you can afford to pay for with cash.
An RV suitable to live in doesn't have to cost very much. Our first full-timing rig, which we lived in while traveling around the country for several years, cost us $700. It was only 18 feet long and it was 25-years old when we bought it -- and it made a very comfortable home.
You might consider giving up your current living quarters and using that monthly mortgage or rent money to buy or lease-to-buy an RV. It is likely that living in the RV, perhaps parked in a mobile home court or campground, for a few more months would save you enough on living costs to enable you to trade it for something nicer.
Although RV financing is probably available for you, I do not recommend that you go into debt to buy an expensive RV.