The Financing Problem — Solved
Financing an RV Lot When Banks Say No
Most traditional banks decline RV lot loans because the collateral doesn't fit their standard categories. Here's the complete picture of who will lend — and what each option actually costs.
Why Traditional Banks Struggle with RV Lots
A seasonal RV lot sits in an uncomfortable gap between asset categories that banks have pre-built approval systems for. It's not a home (no permanent structure). It's not a standard vacant land parcel (it's in a campground with deed restrictions). And it's not really an RV either (it's fixed in place).
The result: your local bank's loan officer pulls up a checklist, the lot doesn't fit any box, and they decline. But the money is absolutely available — you just have to know which lenders have built programs specifically for this asset type.
Traditional bank mortgage
Usually declined
No permanent structure on the lot
Standard land loan
Sometimes works
Depends on whether the lot is deeded real property
RV-specific lenders
Often works
Some programs cover lot + RV combinations
Financing Options That Actually Work
Credit Union Land Loans
Best option for deeded lotsRate
Typically 7–10% (2025 rates)
Terms
5–15 year terms, 10–20% down
Local and regional credit unions are the best first call for deeded RV lot financing. Many credit unions have "recreational land" or "rural property" loan programs that cover campground lots when the lot is on a deed. The key is finding a credit union that has done this type of loan before — ask specifically about recreational land loans, not just mortgages. Credit unions in states with established seasonal lot markets (Michigan, Wisconsin, Minnesota) often have direct experience with this asset type.
Steps to take
- → Call your local credit union and ask specifically about "recreational land loans" or "campground lot financing"
- → If they decline, try 2–3 more credit unions in the same region — experience varies enormously
- → Bring a copy of the deed (for deeded lots) and the campground's HOA documents
- → Expect to put 10–20% down and show 2 years of tax returns
Seller Financing
Most common method for older lotsRate
Negotiable — typically 6–9%
Terms
3–10 year balloon, varies
Many seasonal lot sales are financed directly by the seller — particularly for lots that have been in a family for decades and where the seller has no mortgage to pay off. The seller acts as the bank: you make monthly payments to them for an agreed term, then either pay off the balance or refinance. Seller financing is common, flexible, and often the fastest way to close. The risk: if the seller dies or has financial problems, you may need to refinance sooner than expected.
Steps to take
- → Ask every seller whether they'd consider carrying a note — many will, especially older sellers who don't need the lump sum
- → Hire a real estate attorney to draft the promissory note and deed of trust
- → Agree on interest rate, payment schedule, balloon date, and what happens if you miss payments
- → Record the deed immediately — this protects you if the seller passes away
RV Loans (Chattel Loans)
Works when lot and RV are purchased togetherRate
Typically 8–14%
Terms
10–20 year terms
Some RV lenders — particularly those specializing in manufactured housing or park-model homes — offer "chattel" loans that cover the RV as personal property on a lot. This works best when you're buying a lot that already has an RV or park model on it, or when the lot comes with a park-model home. Lenders in this space include Triad Financial Services, 21st Mortgage, and some RV dealership finance arms. Rates are higher than land loans but approval is often easier.
Steps to take
- → Contact Triad Financial Services and 21st Mortgage directly — both have programs for this asset type
- → Be prepared for higher rates than traditional real estate loans
- → This works better for park-model homes on lots than bare lots or lots with travel trailers
- → Ask the campground office which lenders their other buyers have used successfully
Personal Loans / Unsecured Loans
Fast but expensive — best for smaller amountsRate
9–18% depending on credit
Terms
3–7 years
For lots under $30,000, a personal loan from a bank or credit union is often the path of least resistance. No collateral required, approval is fast, and terms are simple. The downside: higher rates and shorter terms mean higher monthly payments. Best used when you have strong credit and the lot price is low enough that the payment is manageable. Online lenders (LightStream, SoFi) often offer competitive rates for borrowers with good credit.
Steps to take
- → Check LightStream first — they offer recreational land loans at competitive rates for good credit borrowers
- → Get quotes from your existing bank and credit union before going to online lenders
- → Use a personal loan for lots under $25,000–30,000 where the rates are less damaging
- → Compare total cost of loan (not just monthly payment) across options
Home Equity Loan or HELOC
Best rates if you have home equityRate
Prime + 0.5–2% (tied to prime rate)
Terms
HELOC: revolving; HEL: 5–20 years
If you own your primary home and have equity, a home equity loan or HELOC is often the cheapest way to finance an RV lot. You borrow against your home equity — rates are tied to prime and are generally much lower than personal loans or RV loans. The risk: you're putting your home on the line. For retirees with significant equity and steady income, this is often the best rate available.
Steps to take
- → Contact your existing mortgage lender first — existing customers often get better terms
- → A HELOC gives you a credit line to draw from as needed; a home equity loan is a lump sum
- → Interest on home equity loans may be tax-deductible if the money is used to buy real property — confirm with your CPA
- → Don't use a HELOC for the full purchase if you're not confident in your ability to repay quickly
Compare Rates
Check Your Rate Without Affecting Your Credit
Both options below let you check your rate with a soft credit pull — no hard inquiry until you decide to proceed.
LightStream
Best for borrowers with good-to-excellent credit. Competitive rates on recreational land and personal loans, no fees, same-day funding available.
- ✓No origination fees, prepayment penalties, or hidden fees
- ✓Rates from ~7% APR for excellent credit (2025)
- ✓Loan amounts $5,000–$100,000
- ✓Same-day or next-day funding
- ✓Rate Beat program — they beat competitor offers
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LendingTree
Compare multiple lenders at once. Best for shopping rates across credit unions, banks, and online lenders without applying separately to each.
- ✓Compare up to 5 lenders with one soft pull
- ✓Includes credit unions and local banks
- ✓Covers personal loans, land loans, and HELOCs
- ✓Free to use — lenders compete for your business
- ✓Useful if your credit is in the 640–720 range
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LightStream is an editorial recommendation — we receive no commission. RV Lot Hub may earn a referral fee on LendingTree applications, at no extra cost to you. See our disclaimer.
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