How to Finance an RV Park: 6 Ways to Fund a Park Purchase

Before the loan type matters, the deal has to pencil. Lenders finance an RV park as a business, not just land — they lend against the park's net operating income (NOI) and whether that income comfortably covers the loan payment. The loan type below just sets the terms, the down payment, and how fast. And one fact decides your options before anything else: is the park rural? That opens or closes the USDA door — the highest borrowing ceiling here.

The single number every lender checks first is the debt service coverage ratio (DSCR) — the park's annual net operating income divided by its annual loan payments. Most SBA and commercial lenders want a DSCR of roughly 1.20–1.35, meaning the park earns 20–35% more cash flow than it needs to cover the debt. If the DSCR is too thin, the lender either shrinks the loan or passes — no matter how much you want the deal. Knowing your DSCR before you apply tells you what you can actually borrow.

A government-guaranteed loan through a bank, built for small-business owners who don't have a long commercial track record yet.

• Loans up to $5 million
• Down payment often ~10% (as low as 5% with a seller note on standby)
• Up to 25 years on real estate, fully amortizing — no balloon
• Covers real estate, working capital, and improvements in one loan

A bank-plus-CDC structure built for deals where most of the purchase is land and improvements. Often the lowest long-term cost of capital.

• Long, fixed-rate terms on the real estate portion (20–25 years)
• Low down payment via the combined bank + CDC structure
• Higher ceilings than 7(a) on the eligible project size

The USDA Business & Industry program guarantees loans for businesses in rural areas — and RV parks, campgrounds, and glamping resorts qualify. It has the highest ceiling here and no aggregate cap.

• Up to $25 million per project — no aggregate cap, so you can borrow again and again
• Terms up to 30 years (five more than SBA), often at a slightly lower rate
• Requires a rural location, full real-estate collateral, and a feasibility study

Faster and simpler paperwork, but the bank takes all the risk — so it wants a bigger cushion.

• Typically 25%+ down
• Best rates go to experienced operators with strong financials
• Shorter terms and often a balloon, unlike SBA/USDA

It funds the deals banks reject — a fast closing, a value-add park that isn't stabilized yet, or a creative structure.

• Rates roughly 9–13%, interest-only, 12–24 month terms
• 60–75% loan-to-value; can close in 2–4 weeks
• Used to grab a deal now, then refinance into SBA/USDA once stabilized

The seller carries part (or all) of the price as a note you pay over time — often combined with another loan to shrink your cash-in. An SBA loan plus a seller second is a classic low-down structure.

• Little-to-no bank involvement on the carried portion
• Down payment and terms are negotiable directly with the seller
• Pairs with SBA (seller note on standby) to drop your injection to ~5%

Down payment is the question every first-time park buyer asks, and the honest answer is: it depends on the loan, and there are legitimate ways to get it very low.

• SBA 7(a): usually about 10% down — and as low as 5% when the seller holds a note on standby (see below).
• SBA 504: low down through the bank + CDC structure, often around 10–15%.
• USDA B&I: typically around 20–25% equity, in exchange for the highest ceiling and longest term.
• Conventional: the most cash-heavy, generally 25%+ down.
• Seller financing / creative: the down payment is whatever you and the seller agree to.

Can you buy an RV park with no money down? Truly zero-down is rare, but low-and-no-cash structures are real and used often. The most common: an SBA 7(a) loan paired with a seller-held second on standby, which can cut your out-of-pocket injection to roughly 5% — or, in the right deal, close to nothing when the seller carries a large enough note. Full seller financing can eliminate the bank entirely, with the down payment negotiated straight with the owner. And a bridge loan can cover a fast purchase you refinance later. None of these are gimmicks — they're standard capital-stack moves. The catch is they require either a motivated seller, a stabilized park, or strong personal credit to make a lender comfortable with less equity in the deal.