Free Calculator
Enter your purchase price and park income. Get monthly payments, DSCR, and cash-on-cash returns for all three loan types simultaneously — so you can see which financing actually works before you call a lender.
Adjust any field — results update instantly.
Side-by-side comparison — all three financing options
| SBA 7(a) 10% down • 25-year term • fully amortizing | Conventional 25% down • 20-year amort • 10-year balloon | Seller Financing 20% down • custom term • balloon payment | |
|---|---|---|---|
| Down PaymentCash required at closing | — | — | — |
| Loan AmountFinanced portion | — | — | — |
| Monthly PaymentPrincipal + interest | — | — | — |
| Annual Debt ServiceTotal P&I per year | — | — | — |
| DSCRNOI ÷ Annual debt service — lenders require 1.25x+ | — | — | — |
| Annual Cash RemainingNOI minus debt service | — | — | — |
| Cash-on-Cash ReturnAnnual cash remaining ÷ down payment | — | — | — |
| Balloon PaymentRemaining balance due at end of term | None — fully amortizing | — | — |
Each bar shows how much of your annual payment goes to principal (amber) vs. interest (grey). Select a loan type.
Understanding Your Options
The calculator above shows you the math. Here's the context that makes the numbers meaningful — what each loan type requires, who qualifies, and when each one makes sense in an RV park acquisition.
Government-backed
SBA 7(a)
Lowest down payment, longest term, highest rate
Best for: First-time RV park buyers who want to preserve capital with a low down payment. The 25-year term maximizes monthly cash flow but the variable rate creates some payment uncertainty. SBA loans require the borrower to owner-operate or actively manage the park — passive investment structures don't qualify. Expect 60 to 90 days to close and significant documentation requirements.
Bank or credit union
Conventional
Lower rate, higher down, balloon at 10 years
Best for: Experienced buyers with strong balance sheets who prefer a lower rate and don't want the SBA's documentation burden or owner-operator requirements. The balloon payment requires a refinancing event at year 5 or 10 — which creates rate risk if market rates are higher at that point. Community banks with RV park experience are often the best conventional lenders for this asset class.
Owner-financed
Seller Financing
Most flexible, fastest close, negotiated terms
Best for: Buyers who want speed and flexibility, or who can't meet conventional bank requirements. Sellers who carry paper often get a better after-tax outcome through installment sale treatment — which is why motivated sellers sometimes prefer this structure. The risk for the buyer is the balloon: if you can't refinance at the end of the seller note term, you may lose the property. Always plan your exit from a seller note before you sign one.
Why DSCR Is the Most Important Number
DSCR stands for Debt Service Coverage Ratio. It measures how well your park's income covers its loan payments. The formula is simple: NOI divided by annual debt service. A DSCR of 1.0 means the park earns exactly enough to pay the debt. A DSCR of 1.25 means it earns 25% more than the payment — which is the minimum cushion most lenders require.
Why 1.25x? Lenders need a margin of safety. Occupancy fluctuates. Unexpected expenses happen. A 25% cushion means the park can take a modest revenue hit without missing a payment. Some lenders require 1.35x or higher for seasonal parks or markets they consider higher risk.
The DSCR requirement is the single most common reason RV park loans get declined. Not because the buyer has bad credit or the park is in bad shape — but because the purchase price relative to the NOI simply doesn't pencil at the proposed loan terms. The calculator above shows you DSCR in real time as you adjust your inputs. If you see red, the deal as structured won't get bank financing — and you need to either renegotiate the price, increase your down payment, or find a seller willing to carry some of the financing.
✓ PASSES — Lendable
✗ FAILS — Lender will decline
Understanding how buyers underwrite loans helps sellers understand why buyers price the way they do. If you're thinking about selling, we can walk through what a buyer's financing structure would look like on your specific park.