At a Glance

The five financing paths for RV park buyers

There is no single right answer for how to finance an RV park. The best option depends on the purchase price, your down payment, your credit and income history, the park's condition and financials, and how fast you need to close. Here's a quick reference before we go deeper on each one.

Most popular

SBA 7(a)

Down payment10% min
Amortization25 years
Max loan$5M
Rate typeVariable

Best for: First-time buyers, parks under $5M

Large acquisitions

SBA 504

Down payment10% min
Amortization20–25 years
Max loan$14M+
Rate typeFixed (CDC portion)

Best for: Parks $2M–$10M, rate certainty

Experienced investors

Conventional

Down payment25–35%
Amortization20–25 years
Max loanNo federal cap
Rate typeFixed or variable

Best for: Strong balance sheet, faster close

Best terms possible

Seller Financing

Down payment10–30%
Amortization5–20 years
Max loanNegotiable
Rate typeFixed (negotiated)

Best for: Off-market deals, motivated sellers

Asset-based

DSCR Loan

Down payment20–30%
Amortization30 years
Max loanVaries by lender
Rate typeFixed or ARM

Best for: Self-employed, non-W2 income buyers

Bridge / value-add

Private / Hard Money

Down payment30–40%
AmortizationInterest only
Max loan65–70% LTV
Rate typeFixed, high rate

Best for: Distressed parks, fast closes

A word on rates: RV park loan rates shift with the market. The numbers in this guide reflect typical spreads and structures rather than specific rates, which change weekly. Always get quotes from at least three lenders before committing — rate differences of even 0.5% have significant impact over a 25-year amortization.

Option 1

SBA 7(a) — the most common path for parks under $5M

The SBA 7(a) loan is the workhorse of small business real estate financing, and RV parks qualify as eligible businesses under SBA guidelines. It's the most common financing path for first-time park buyers because the down payment requirement is low relative to conventional loans and the 25-year amortization makes the monthly math work at reasonable purchase prices.

SBA 7(a) Loan — Key Terms

Most popular
10%Minimum down payment
25 yrMax amortization
$5MMaximum loan amount
Prime + 2.75%Typical rate range

The 10% down requirement is the main draw. On a $1.5M park, that's $150,000 down versus $450,000 for a conventional 30%-down loan. For buyers with good credit and operating history, this makes SBA 7(a) the highest-leverage institutional financing available.

The rate is variable — typically tied to the Prime Rate plus a lender-negotiated spread. That means your payment can change over time. Buyers who close during low-rate environments and hold long-term have generally done well. Buyers who need rate certainty often prefer the SBA 504 instead.

SBA loans come with a personal guarantee requirement and a restriction on "passive" ownership — you need to be actively involved in operating the park, or have a qualified operator in place. Pure passive investors don't qualify.

Advantages

  • ✓Lowest down payment of any institutional loan
  • ✓25-year amortization keeps payments manageable
  • ✓Available for parks with septic and well systems
  • ✓Can include working capital in the loan

Drawbacks

  • ✗Variable rate — payment can increase over time
  • ✗Slower to close than conventional (60–90 days typical)
  • ✗Personal guarantee required
  • ✗$5M cap limits use for larger acquisitions

Option 2

SBA 504 — fixed rate, larger loans, two-lender structure

The SBA 504 program structures the loan as two pieces: a conventional first mortgage from a bank covering 50% of the purchase price, and a fixed-rate CDC (Certified Development Company) loan covering 40%. The buyer brings 10% down. The CDC portion carries a fixed rate set at the time of closing, which is the main advantage over the 7(a).

SBA 504 Loan — Key Terms

Fixed rate option
10%Minimum down payment
20–25 yrCDC loan term
$14M+Total project ceiling
Fixed (CDC)Rate structure

For parks priced above $2M where rate certainty matters, the 504 is worth the additional complexity. The fixed-rate CDC portion gives you predictability on 40% of the debt. The bank portion still floats, but having nearly half your debt at a locked rate changes the risk profile meaningfully.

The 504 requires job creation or other community economic development goals — in practice, most park acquisitions satisfy this through existing employment, but your CDC will walk you through the specific requirements for your deal.

Advantages

  • ✓Fixed rate on 40% of the loan through CDC
  • ✓Higher loan limits than 7(a)
  • ✓Good for larger stabilized park acquisitions

Drawbacks

  • ✗More complex — two lenders, two approvals
  • ✗Longer closing timeline than 7(a)
  • ✗Job creation requirement adds documentation

Option 3

Conventional commercial — more down, faster close, fewer restrictions

Conventional commercial loans require significantly more equity — typically 25 to 35% down — but offer advantages that SBA loans don't: faster closings, fewer restrictions on ownership structure, no personal guarantee requirement in some cases, and the ability to close with terms a motivated seller needs.

Conventional Commercial Loan — Key Terms

Faster close
25–35%Typical down payment
20–25 yrTypical amortization
30–45 daysTypical close timeline
Fixed or ARMRate options

Investors with strong balance sheets, prior commercial real estate experience, or significant liquidity often prefer conventional financing because the speed and flexibility outweigh the higher down payment. In a competitive off-market deal where a seller wants a 30-day close, being pre-approved for conventional financing is a real advantage over an SBA borrower who needs 90 days.

Conventional lenders also tend to be more flexible on park types and conditions. A park with a well and septic system that would make an SBA underwriter nervous may sail through a community bank that knows the local market and has done similar deals before.

Advantages

  • ✓Closes in 30 to 45 days — competitive advantage
  • ✓No SBA eligibility requirements or passive ownership restrictions
  • ✓Community banks often more flexible on park condition

Drawbacks

  • ✗25 to 35% down ties up significantly more capital
  • ✗Shorter balloon terms (5 to 10 years) mean refinance risk
  • ✗Fewer lenders specialize in RV parks
Find a lender who knows the asset class. A community bank that has never financed an RV park will take longer, ask more questions, and potentially decline a perfectly solid deal because it doesn't fit their standard underwriting template. Seek out lenders with prior RV park or campground experience — they understand septic systems, seasonal revenue, and HCD compliance better than generalists.