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How Do You Finance Your RV Park?

With inflation at its highest rate in more than 40 years, now more than ever it’s crucial to make informed decisions when it comes to financing your RV park. There’s a variety of financing options available for RV parks, and you’ll need to determine which option best suits your needs.

Traditional Lending

One option for financing your RV park is traditional lending. With traditional lending, you can apply for loans from larger banks. Remember, all loans to finance your RV park MUST BE commercial loans. With traditional lending, it’s also important to remember that local banks and credit unions are more flexible with the terms of their loans. Building a rapport with your local bank or credit union will be a major benefit for you when it comes time to refinance or take out another loan. It’s also important to note that smaller banks typically carry higher interest rates on their loans and traditional lending also has a strict approval process.

Private Money

If you don’t feel that traditional lending is for you, private money is one alternative to finance your RV Park. Private money loans occur when you secure a private loan from an individual. With private money loans, there are no uniform loan standards, all terms and conditions are left for the lender to decide. Typically, the terms of these loans are based on the potential income of the property, but these loans usually carry significantly higher interest rates than traditional methods.


If neither traditional lending nor private money loans work for you, entering a partnership is a good alternative. In a partnership, each party brings something unique to the table. For example, if you enter a partnership with a financier, their duty is to fund the project and your duty is to operate and manage the business. There are numerous ways to structure a partnership and you and your partner will have to agree on terms that satisfy both of your needs. In a partnership agreement, you must account for EVERY detail no matter how small it might seem. Before signing anything, have your own legal counsel review your operating agreement and walk you through the terms and conditions so you fully understand your role and responsibilities in the partnership.

Owner Financing

Did you know that 4 out of every 5 RV parks are owned by mom and pop operators? This represents a fantastic alternative to any of the financing options we’ve mentioned so far as these mom and pop owners are more willing to sell their park to you rather than an institutional investor. With owner financing, the mortgage is held by a private entity, and the note is held by the previous owner. Owner financing is a great alternative for buyers who don’t qualify for a traditional mortgage. With this type of financing option, the lender sets the terms and conditions of the loan. In order to keep your monthly payments low, a best practice with owner financing is to mature your loans over a 30-year period.

Independence Bank

Last but certainly not least, you can finance your RV park through Independence Bank. Independence Bank has been specializing in campground lending for over two decades. They have financed over 40% of the active KOA campsites across the United States and Canada, lending out over $300 million to active KOA owners. The bank offers competitive rates, customized payment schedules, and non-repayment penalties. They also offer additional financing with a quick approval process, no cash down, and repayment schedules based on the revenue of the property.

Investing in RV parks is a great opportunity for any investor because of the vast array of financing options that are available for buyers. Regardless of your situation, there is a financing option that will meet your needs and not break the bank.

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