The Van Guide
Financing

Personal Loans vs. RV Loans for Van Builds: Which One Makes Sense

Personal loan vs. RV loan for a van conversion in 2026: real rates, terms, total cost compared side by side, and when each option saves you more.

The Van Guide

The two most common financing paths for a van conversion are RV loans and personal loans. They solve the same problem (putting money in your hands to pay for a build) but they work differently, cost differently, and fit different situations.

This is not a question with a universal right answer. It depends on the build cost, the builder’s RVIA certification status, the buyer’s credit profile, and how much complexity the buyer wants to manage. Here is the direct comparison.

The Fundamental Difference

RV loans are secured. The lender takes the van as collateral. If the borrower defaults, the lender repossesses the vehicle. Because the lender has an asset backing the loan, rates are lower and terms are longer.

Personal loans are unsecured. The lender has no collateral. If the borrower defaults, the lender has to pursue collections or write off the loss. Because the lender bears more risk, rates are higher and terms are shorter.

This single difference drives every other difference between the two products.

Side-by-Side Comparison

FactorRV LoanPersonal Loan
Interest rate6–9% (well-qualified)7–13% (well-qualified)
Term length10–20 years2–7 years
Maximum amount$150,000+$50,000–$100,000
CollateralThe vanNone
RVIA required?Usually yesNo
Appraisal required?Often yesNo
Title requirementsMust be titled as motorhome/RVNo title requirements
Time to fund1–4 weeks1–7 days
Origination fee0–2%0–8% (varies by lender)
Prepayment penaltySome lendersRare

What the Numbers Actually Look Like

Theory matters less than dollars. Here is what each option costs for three common build amounts, assuming well-qualified borrowers:

$30,000 Conversion

RV Loan (7%, 15 years)Personal Loan (10%, 5 years)
Monthly payment$270$637
Total interest paid$18,537$8,245
Total cost$48,537$38,245

The personal loan costs $367 more per month but saves $10,292 in total interest because it is paid off in 5 years instead of 15.

$60,000 Conversion

RV Loan (7%, 15 years)Personal Loan (10%, 5 years)
Monthly payment$539$1,275
Total interest paid$37,073$16,489
Total cost$97,073$76,489

At $60,000, the monthly payment difference is $736. The total interest difference is $20,584. The personal loan saves significantly on total cost, but the monthly payment may not be manageable for every budget.

$100,000 Conversion

RV Loan (7%, 15 years)Personal Loan (10%, 5 years)
Monthly payment$899$2,125
Total interest paid$61,789$27,482
Total cost$161,789$127,482

At $100,000, a $2,125 monthly payment is a significant commitment. Many borrowers at this level choose the RV loan despite the higher total cost because the monthly payment fits their budget. Others split the difference by making extra payments on the RV loan to pay it off in 8–10 years instead of 15.

Important caveat: These examples use simplified amortization. Actual costs depend on the specific rate offered, any origination fees, and the actual term. Get real quotes from real lenders before comparing.

When a Personal Loan Is the Better Choice

A personal loan makes more sense when:

The builder is not RVIA-certified. This is the most common reason people use personal loans for van conversions. If the builder is not certified, most RV lenders will not underwrite the loan. A personal loan skips this requirement entirely because the lender does not care what the money is used for. For a full breakdown of this scenario, see How to Finance a Van Conversion Without RVIA Certification.

The amount is under $30,000. At lower amounts, the rate difference between an RV loan and a personal loan produces a smaller dollar difference, and the faster payoff of a personal loan may be preferable. Many RV lenders also have minimum loan amounts ($25,000–$50,000) that make smaller conversions ineligible.

Speed matters. Personal loan applications are typically approved and funded within 1–7 business days. RV loans require appraisals, title verification, and longer underwriting cycles — often 2–4 weeks. If a builder has availability and needs a deposit quickly, a personal loan can move faster.

The van is not yet titled as a motorhome. RV loans typically require the vehicle to be titled and registered as a motorhome or housecar. If the retitling process has not been completed — or if the build is not yet done — a personal loan can bridge the gap.

The borrower wants to avoid putting the van at risk. Because personal loans are unsecured, defaulting on the loan does not result in repossession of the van (though it does result in credit damage and collections). Some borrowers prefer this structure.

Personal Loan Lenders for Van Conversions

LightStream (a Truist bank division) offers personal loans from $5,000 to $100,000 with no origination fees, no prepayment penalties, and no application fees. Terms range from 2 to 20 years — significantly longer than most personal loan competitors. Rates start at 6.49% APR with AutoPay (0.50 percentage point discount for automatic payments) and go up to 24.89% APR. LightStream’s loan purpose categories include “RV / Trailer” and a broad “Anything Else” catch-all, though “van conversion” is not explicitly named. Same-day funding is available for applications completed by 2:30 PM ET. LightStream requires “good to excellent” credit but does not publish a minimum FICO score.

SoFi offers personal loans from $5,000 to $100,000 with no origination fees, no prepayment penalties, and — unusually — no late fees. Terms range from 2 to 7 years. Rates start at 7.74% APR (including a 0.25% autopay discount and 0.25% member rate discount) and go up to 35.49% APR. SoFi’s loan purpose language is broad (“lawful personal, family, or household purposes”) but does not explicitly name van conversions. Same-day funding is available for applications completed by 5:30 PM ET. SoFi does not publish a minimum credit score.

LendingClub offers personal loans from $1,000 to $60,000 with terms of 2 to 6 years. Rates start at 7.04% APR and go up to 35.99%. Origination fees of 0–8% apply and are deducted from loan proceeds. LendingClub accepts a broader range of credit profiles than LightStream or SoFi, which can make it an option for borrowers who do not qualify elsewhere. Accepted purposes include “major purchase” and “other,” though van conversion is not explicitly named. No prepayment penalty.

Upgrade offers personal loans from $1,000 to $50,000 with terms of 2 to 7 years. Rates start at 7.74% APR and go up to 35.99%. Origination fees of 1.85–9.99% are deducted from proceeds. Upgrade accepts a wider credit range than premium lenders and reports payments to all three credit bureaus, which can help borrowers build credit during the loan term. Accepted purposes include “major purchases” and “home improvement.” No prepayment penalty.

When an RV Loan Is the Better Choice

An RV loan makes more sense when:

The builder is RVIA-certified. This is the cleanest path. RVIA certification satisfies the lender’s primary risk concern, and the application process mirrors a standard vehicle purchase. For details on which lenders accept converted vans and what they require, see RV Loans for Converted Vans.

The amount is above $50,000. At higher amounts, the rate difference compounds significantly. On a $75,000 loan at equal 15-year terms, the difference between 7% and 11% is roughly $32,000 in total interest. At $100,000, the gap between the tables above is over $34,000.

Monthly payment matters more than total cost. A 15-year RV loan at 7% on $60,000 costs $539/month. A 5-year personal loan at 10% on the same amount costs $1,275/month. If $1,275/month is not manageable, the RV loan is the only viable option regardless of total interest.

The conversion is complete and titled. If the van is already built, titled as a motorhome, and documented with photos and an appraisal, the RV loan process is straightforward. The complexity of RV lending comes from the underwriting requirements, not from the loan itself. If you still need to retitle, see our registration overview for how the process works state by state.

The buyer plans to keep the van long-term. If you plan to keep the van for 10+ years, a longer-term RV loan aligns better with the ownership timeline. If you plan to sell in 3–5 years, a shorter personal loan may make more sense so you are not still paying for a van you no longer own.

The Hybrid Approach

Many van conversion buyers use both:

  1. Auto loan for the base vehicle at conventional auto loan rates (5–8% for well-qualified borrowers, 3–6 year terms)
  2. Personal loan for the conversion cost at personal loan rates

This splits the financing into two manageable pieces and avoids the RVIA certification requirement entirely. The auto loan is secured by the vehicle (conventional underwriting), and the personal loan covers the conversion cost without any vehicle-related requirements.

The downside: two monthly payments, two applications, and the personal loan rate applies to the conversion cost. But for a buyer working with a non-RVIA builder, this is often the most practical path.

What About Refinancing?

A common strategy: finance the build using a personal loan or cash, complete the conversion, title the van as a motorhome, then refinance into an RV loan at a lower rate and longer term.

This works in principle, and some buyers have done it successfully. The practical challenges:

  • The RV lender still evaluates the completed unit, and non-RVIA builds may face the same barriers at refinancing that they face at initial lending
  • Refinancing involves closing costs, appraisal fees, and potentially a gap period between loans
  • If the van has depreciated since the build, the loan-to-value ratio may not support the refinance amount

Refinancing is worth exploring once the build is complete, but it should not be treated as a guaranteed outcome when planning the initial financing strategy.

How to Decide

Ask these questions in order:

  1. Is the builder RVIA-certified? → If yes, get RV loan quotes first. If no, personal loan or hybrid approach. Not sure what RVIA means for your build? See RVIA Certification for Van Conversions.
  2. How much are you financing? → Under $30,000: personal loan is probably simpler. Over $50,000: compare both if RV loans are available.
  3. What monthly payment can you afford? → If you need the lower monthly payment, an RV loan (with its longer term) may be the only viable option.
  4. How long do you plan to keep the van? → Selling in 3–5 years favors a personal loan (paid off before sale). Keeping 10+ years favors an RV loan (lower monthly cost over a longer period).
  5. How fast do you need the money? → Deposit due next week? Personal loan. Closing in 30 days? Either works.

Get quotes from at least two lenders in each category before deciding. The advertised rate ranges are just ranges — your specific rate depends on your credit profile, income, debt-to-income ratio, and the lender’s current pricing. If you are still looking for a builder, our van builder directory can help you find shops in your state and compare pricing tiers.

Sources and Verification

Rate ranges reflect published lender materials as of April 2026. Amortization examples use standard fixed-rate calculations and do not account for origination fees, which would increase the effective cost of loans from lenders that charge them. Always verify current rates directly with lenders.