What You Need To Know Before You Buy
There are several key considerations before buying a boat or RV. These are important steps that you need to think about before you let someone pull your credit report.
Valuation of the boat or RV: Its one thing if your credit is in great shape, but is your potential purchase worth the loan amount? Vehicle or vessel valuation is a big factor in a lenders decision. If the valuation doesnt meet the loan amount, then a lender will have no choice but to decline your request or not give you what you require to complete the purchase. How do you determine the boat or RV valuation? Give us a call and well be happy to help.There are no obligations or pressure to act.
Solid Liquidity Position: Do you have accessible funds? In other words, cash in the bank. This could even mean investments, IRAs, 401Ks and or other forms of liquidity. Especially on large loans over $100,000.00, a lender will want to see a solid financial position in order to lend money. Even though youre financing the boat or RV, you want to have financial backing to help the lender see that you are able to keep up with the payments.
Chesapeake Financial will take special care to ensure that your credit score isnt tarnished needlessly. We go to great lengths to ensure that valuation and your financial position are in place prior to running your credit. Please call us with any questions you may have about these suggestions. Wed be happy to chat.
Can I Get A Loan For A Used Boat
You can get a loan for a used boat but there are some limitations. The boat lender usually requires that the boat be no older than a certain age. Most lenders wont finance a boat that was built before 1999 or 2000. However, some lenders will finance boats of any age and price range, but you may end up paying a higher rate and putting down a larger down payment.
Different lenders have varying requirements when it comes to financing used boats. Some lenders will require an inspection and an appraisal and others will only finance up to 85% LTV and will expect a down payment.
Financing a used boat is usually more affordable than financing a new boat, but its important to know the condition of the boat so you dont end up with unexpected repair costs.
How Long Does It Take To Get Approved For A Boat Loan
New Boat loans can be processed and closed in a week, which is much faster and easier than real estate loans. Financing for pre-owned vessels takes longer. However, Boat Loan Specialists, working with Lenders who know the marine industry, can process paperwork faster, provide guidelines of all the things that are needed for a Boat purchase, and refer needed resources. They are, more knowledgeable, faster and easier to work with than a personal banker.
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Use A Boat Loan Calculator
The LendingTree boat loan calculator helps you determine your monthly payment using the loan amount, interest rate and loan term. Additionally, the calculator breaks down monthly payments by year, helping you plan ahead. Should you find that your estimated payment is a bit tight for your budget, the tool allows you to adjust the loan amount and/or boat loan term to find what best fits your needs. When its time to buy, you may fill out a single LendingTree form and receive up to five possible boat loan offers from lenders based on your creditworthiness.
Getting A Loan For A Used Boat Is Easy Fast And Secure
Our entire process takes place online, giving you the convenience you desire. You can do everything from filling out your application to signing your closing documents without making appointments or traveling to an office. Our customers appreciate the ease of completing the process on smartphones. We use Norton VeriSign Secured, the most trusted name in online security, to protect your information.
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Best Marine Lending Specialist: Trident Funding
Why We Chose It: Our choice for the best marine lending specialist is Trident Funding because they offer competitive rates, specialize in custom marine financing, and have been in business since 1996.
Dont finance boats more than 25 years old
Dont finance live-aboard vessels
You usually need a down payment
Trident Funding was founded by boat enthusiasts for boat enthusiasts with the goal of connecting borrowers to lenders so they can finance their passion. It is the U.S.s largest independently owned boat and yacht loan origination company. Trident also finances RVs and provides marine resources and tips on its website.
The company understands the boating business so can help educate you if this is your first boat. It has worked with over 40 banks and lenders so can rate shop to offer the most competitive rates and terms which vary based on the type of vessel, down payment amount, loan type, and borrower qualifications.
They offer fixed and variable rates starting at 4% and both short and long term boat loans up to 25 years. Typically, they approve loans within 48 hours and a down payment of 1020% is standard. They finance new and used boats that are no older than 25 years and only used for recreational purposes.
Trident Funding has positive customer service reviews and a solid industry reputation. Customers raved about the excellent service, timely responses, and marine industry knowledge.
The Southeast Financial Difference
Efficient: When looking for a boat loan through a dealership, youll play the game of shifting rates and terms, down payment and cost of the vessel. By securing your loan through Southeast Financial, you take greater control of the negotiating process and can secure the best loan to ensure the greatest value when purchasing your new boat.
Fast: If buying a used boat from a second party, time is of the essence. Once youve agreed on a price, the seller will want payment quickly. This is where our online efficiencies come in. Once youve gone through our approval process, securing the loan and getting your check is processed without delay, helping you get on the water and having fun in record time.
Flexible: Because we specialize in all types of waterborne vehicle financing, we dont need to play games with our rates or terms. We can finance your watercraft for as little as $15,000 with repayment terms of up to 15 years for our larger boat loans, which helps in lowering your monthly payment. And for larger boats, we can finance up to $4 million, ensuring we can get you in the exact boat you need without having to hassle with a bank or dealership.
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The Bottom Line On Boat Loan Terms
If youre financing the purchase of a boat, keep in mind that your options vary along with your financial picture. As with any other loan, those who come bearing good credit and a decent chunk of disposable income will find more favorable boat loan terms than those with less-than-perfect credit and a tighter budget. In general, financing a luxury item like a boat may be subject to higher underwriting standards than a car or home.
A few things to be aware of:
- Simply getting approved for a loan and being able to make a down payment does not necessarily mean that you will be able to keep up with the obligation long term. Make sure you consult your budget and be realistic.
- When shopping for a loan, be sure to check your credit, pay down other debt and get prequalified so that you know the exact amount for which youll get approved.
- Dont get in over your head. Its tempting to buy a boat, but the better option is to make sure that you can afford the payments before giving into that temptation.
Boat Loans: Options Interest Rates And Lenders
If it sounds simple, well, thats because it is. Most new boats are purchased with a loan, so well-established procedures are in place. As for who to take out the loan from, youll have three basic options to choose from:
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Ready To Secure Boat Financing
The bottom line? If youre buying a new boatwhich wed certainly encourage as opposed to buying used, since new boat-buyers report a much higher level of satisfactionand your credit score and debt-to-income ratio are up to snuff, you should have no problem financing a boat that meets a lenders minimum loan amounts for up to 20 years.
Use our Boat Buyers Guide to help work through all the other factors that should be taken into account when making a purchase of this nature, and youll have years of fun on the water to look forward to.
What Do Lenders Look For In A Potential Boat Buyer
Obviously, a high net worth appeals to lenders, and they will want to know that youre not already overextended with other loans. Lenders want to see that you have managed loans of a similar size before. Lenders also look for liquid assets that will cover 12 to 16 months of payments. Steady employment and a primary residence are factored together by a lender as part of the candidate evaluation process.
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Interest Rates Tend To Level Out
Unless youâre opting for a short loan term â five years or less â youâre going to get pretty much the same interest rate on your loan. When buyers find out an eight-year boat loan term is going to have the same interest rate as a 10- or 12-year loan term, they usually opt for the longer term.
Why? Because it gives buyers a lower monthly payment without adding to the total cost of their loan. This can make boat buying much more realistic for buyers with a tighter budget, and it provides buyers the opportunity to make additional payments toward their principle.
If It Floats We Finance It
With repayment terms of up to 15 years for a larger boat, we have leveraged the high volume of financing we do to deliver the perfect watercraft loan for you. Our network of banks and lenders specialize in financing a variety of waterborne vehicles.
We can secure an online boat loan for virtually any type of personal-use vessel that sits in the water. This includes:
- Bass Boats
- Wakeboard boats
- High-end Yachts
And our expertise doesnt end with boat financing. We can provide extended warranties as well as in-depth advice to effectively insure your marine vehicle. Add all this to our remarkable customer service and online efficiencies, and youve just bought yourself peace of mind and security to last the life of your boat.
Getting started is just a click of the Apply Now button away. Start exploring your options today to see just how efficient we can be.
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Boat Loan Calculator: See Your Boat Payments
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If you need a boat loan to cover the purchase of a new or used boat, a loan calculator can help you determine what size or type of vessel you can afford.
Use this boat loan calculator to estimate the cost of a personal loan used to finance a boat. Enter your expected loan amount, desired repayment term and annual percentage rate to see estimated monthly payments, interest costs and total payments.
You can change your desired loan amount, term or APR to see different results and decide how boat loan payments fit into your budget.
Loan amount: This is the amount you expect to borrow. Amounts for unsecured loans can be as high as $100,000, while secured boat loans can be over $1 million.
Repayment term: This is how long you think youll need to repay the loan. Unsecured loans often have repayment terms of two to seven years secured boat loan terms can be as long as 20 years. Longer repayment terms typically mean lower monthly payments, but you’ll pay more in total interest.
Here’s what average estimated APRs are on unsecured personal loans, based on FICO score ranges:
Bank Of The West Boat Loans
Types of boats financed: Boats must be model year 2001 or newer to be eligible. Bank of the West specifically says that it finances standard or custom power or sailboats, multi-hull boats, pontoon boats, and electric boats. The lender also offers loans for high-performance boats, houseboats, and wood hull boats. However, it does not finance boats that can exceed 99 miles per hour.
4.29% to 9.99% for both new and used purchases, and 3.59% to 3.94% for live-aboard boats
Loan amounts available: $10,000 and up for new and used boats, $25,000 and up for live-aboard boats. Loans over $2 million are available.
Watch out for: Credit score requirements. Bank of the West states on its site that it lends only to people with credit scores of 700 or higher.
Boat loans through Bank of the West and its lending division, Essex Credit, are a good option for people planning to get a boat loan of $50,000 or above.
A $10,000 boat loan with Bank of the West would have a starting interest rate of 8.89%, a $15,000 boat loan would start at 8.39%, and a $50,000 loan starts at 4.29%. While their rates for loan amounts over $50,000 are competitive, anyone looking for a smaller loan may find a better rate with LightStream.
It’s worth noting that this lender does have a loan processing fee that could add to your total cost of borrowing. A 10% down payment is also required for loans between $10,000 and $200,000, and percentages increase for higher loan amounts.
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Other Lenders We Considered
- US Bank: This lender’s loan interest rates weren’t the most competitive, starting at 5.24% for a new boat. The bank states that rates may be higher for private party boat purchases, loans under $25,000, and used boats. Ultimately, lower rates may be available elsewhere.
- USAA: USAA is only available to people with military affiliations, limiting the number of people who can access these loans. However, even those eligible could get a better rate from one of our top picks interest rates start at 5.25% with USAA, about a percentage point higher than a LightStream loan.
- Navy Federal Credit Union: Like USAA, membership with this credit union is only available to certain people. However, a starting interest rate of 5.95% for new boats and 7.45% for used boat loans mean there are better deals to be found elsewhere.
- Boat US: This online boat loan marketplace didn’t beat interest rates offered by other lenders. A high minimum loan amount of $25,000 also may be more than many borrowers need.
How Long Is The Typical Boat Loan
Most Boat loans are for 15 or 20 years. Longer terms mean Lower Payments, but also more total interest paid. Because Marine Lenders extend longer terms on Boat loans than local Banks and Credit Unions, your monthly payments are likely to be much lower than you expected. Our representatives know what kind of loans lenders are looking for and can match your needs with the lenders most likely to give the lowest rate and most attractive terms.
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The Best Boat Loans Of September 2021
|Check rates > >
*With auto-pay discount
The best boat loan depends on your budget, the type of boat you’re purchasing, and the age of the boat. From financing for small ski boats to full-size yachts, there’s a loan out there for most things that float. But they’re not all the same.
Once you’ve narrowed down the type of boat you’re interested in buying and what model year you’re looking for, you can start shopping for a boat loan. Many lenders will only finance certain types of boats, or require a boat to be newer than a certain model year. To make sure you make the most of your shopping, know this going into it.
There aren’t as many lenders offering boat loans as there are auto loans. But there are still a few to choose from.
Here are Insider’s top picks for boat loans in September 2021.
Types of boats financed: LightStream doesn’t list any specific requirements
4.29% to 10.39% APR, with auto pay discount
Loan amounts available: $5,000 to $100,000
Watch out for: High credit score requirements. LightStream only works with borrowers with good or better credit, so anyone with a low credit score may not qualify.
LightStream boat loans are a strong option for most borrowers looking for an inexpensive boat and fast funding.
LightStream is an online lender backed by Truist . With a completely online experience, same-day funding available, and many loan types offered, LightStream is one of our picks for the best RV loans and best personal loans.