Whether Youll Need A Marine Survey
When you apply for a secured boat loan, the boats value will be a factor in how much you can borrow.
If youre not getting a new boat, you should get a marine survey. During a marine survey, an inspector will examine the vessel, engine and trailer, detail the boats condition, note any repairs needed and determine whether its safe to take on the water.
Best Boat Loans In : Finance Your Boat
Boat loans can be unsecured or secured by the boat. Compare financing options from online lenders, banks and credit unions.
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Setting sail on your own boat is a priceless experience. But unless youve saved a lot of cash, youll need a boat loan to make your dreams a reality.
You can get a boat loan from a banks, credit union or online lender. The application process is typically fast, and approval is largely based on your credit score and ability to repay.
Before you jump in, consider that most financial experts don’t recommend personal loans for discretionary purposes, especially if you already carry credit card or other debt. If you take a personal loan, have a plan to pay it off.
Heres how to finance a boat with a personal loan; including unsecured and secured loan options where to find boat loans and factors to consider before applying.
Setting sail on your own boat is a priceless experience. But unless youve saved a lot of cash, youll need a boat loan to make your dreams a reality.
Can Borrowers Find Bad
Its possible to get a boat loan even if you have a credit score around 550, but youll likely owe a higher APR and need a significant down payment of 10% or more. Given that you may face higher lender charges, its even more important to shop around for your best loan. You can still use our boat loan calculator, but check out more on bad-credit boat loans.
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How Much Do Boat Loans Cost
The costs of boat loans vary based on several factors including the type of loan, the type and year of the boat, the loan term, the lender, and the borrower qualifications. Typically, the most expensive cost will be the interest you pay over the life of the loan. Boat loan interest rates usually start around 3.99% and go up to 20%. Some lenders charge processing fees while others dont charge any additional fees. Down payments are sometimes required, especially on more expensive vessels, and these may range from 10%30% of the cost of the boat.;
Some other fees to look out for when purchasing a boat include:
- Inspection fee
- Any necessary Coast Guard licenses and fees
- Title, tax, and registration fees
- Docking and storage fees
How Do I Apply
3 Easy Steps to Apply
I have used Elements for a mortgage, two auto loans, and now a boat loan. It’s great that I have been able to count on my credit union for all of my loan needs. They have great service!
– Tammy L. | Member since 1997
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View Complete List Of Disclosures
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Rates effective July 1, 2020
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Legal Disclosures and Additional Information
Your APR will be based on your credit score and the term of the loan. You will be informed of the APR for which you qualify before you become contractually liable for the account.Based on an APR of 3.99%, your monthly payment on a $10,000 loan amount and a 60-month term would be $184.42. Based on an APR of 4.09%, your monthly payment on a $20,000 loan amount and a 61-month term would be $363.72. Based on an APR of 4.19%, your monthly payment on a $60,000 loan amount and an 85-month term would be $818.41. Based on an APR of 4.29%, your monthly payment on a $75,000 loan amount and a 121-month term would be $765.94.
Based on an APR of 4.49%, your monthly payment on a $10,000 loan amount and a 60-month term would be $186.73. Based on an APR of 4.59%, your monthly payment on a $20,000 loan amount and a 61-month term would be $368.27. Based on an APR of 4.69%, your monthly payment on a $60,000 loan amount and an 85-month term would be $832.55. Based on an APR of 4.79%, your monthly payment on a $75,000 loan amount and a 121-month term would be $784.25
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For New Vehicles
Policies subject to change upon regulation change or Board of Directors approval.100% of the MSRP or 110% of the invoice price if MSRP is not available. Percentage is determined by credit worthiness.
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For Used Vehicles
Best Boat Loans For 2021
Editor’s Take
LightStream is part of SunTrust Bank and offers unsecured loans designed specifically for financing boat purchases. Youll need good credit to qualify and can borrow up to $100,000. Loan terms range between two and seven years and interest rates tend to range between 4.29% up to 10.84% when you sign up for AutoPay.
Once approved, you have the flexibility to choose your funding date, which can be as fast as the same day. LightStream also advertises it will beat any other qualifying rate.
Key Features
- Loan amount: $5,000 to $100,000
- No collateral required
- 0.05% rate deduction with AutoPay
- Fixed rate
Editor’s Take
Essex Credit offers competitive interest rates on loans financing a range of boats, from houseboats to pontoon boats and everything in between. You can apply online to get a rate quote and browse monthly payment amounts using their boat loan calculator.
Key Features
- Financing for boats 1999 and newer
- Loan amount: $10,000 to $5,000,000
- Loan term: 4 to 20 years
Details
- Available in all 50 states and Puerto Rico
- Minimum FICO credit score: 690
- No pre-approvals offered
Editor’s Take
BoatUS offers financing options for a range of water vehicles, including powerboats, sailboats, multi hull boats, and pontoon boats. You can borrow anywhere between $15,000 and $350,000 with BoatUS, and sometimes even more. The required down payment depends on things like the age of the boat and the loan amount.
Key Features
Details
User Reviews
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Navy Federal Credit Union
Navy Federal Credit Union offers loans for new and used boats and personal watercraft, with terms of up to 180 months. Military members with direct deposit may qualify for a rate discount. Service members in all branches of the armed forces, along with their families and household members, are eligible for credit union membership.
Like A Bank Only Better
Better Rates. Fewer Fees.
Because were a credit union, we return profits to members in the form of reduced fees, higher savings rates and lower loan rates.
Trusted Advice. Fresh Approach.
We pride ourselves in being a trusted source for financial education. Your financial wellness expert will come to your workplace to answer questions and provide you with 1-on-1 assistance as you navigate the changes that come with each of life’s stages.
Respected Locally. Accessed Globally.
Headquartered in Indianapolis since 1930, we rank among the top 3% of credit unions nationally1. We serve members in all 50 states and 50+ countries. Youll have access to 5,000+ shared branches nationwide and 78,000+ surcharge-free ATMs globally.
High Tech. Human Touch.
Our technology makes banking with Elements easy. From quick digital applications to online and mobile banking, well be by your side wherever you go. Were here for you with member service available 24/7 and live chat during the workday.
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What Are The Fees
There are no prepayment penalties or an annual fee associated with a Boat Loan.
Elements boat loans include a low $140 processing fee. Refinancing of an existing Elements boat loan has an additional $200 fee.
For boats over 25 feet, there is a standard Coast Guard Recorded Mortgage requirement. This includes a fee of $500 to $750 that is paid to a third party.
Compare Multiple Offers Before Setting Sail On A Boat Loan
Be sure to compare as many lenders as possible when shopping around for a boat loan. Also consider any manufacturer or dealer financing available to you. This way, you can decide what best suits your needs.
Tip:
With Credible, you can compare your prequalified rates from several lenders that offer personal loans for boats in just two minutes.
Ready to find your personal loan?Credible makes it easy to find the right loan for you.
- Free to use, no hidden fees
- One simple form, easy to fill out and your info is protected
- More options, pick the loan option that best fits your personal needs
- Here for you. Our team is here to help you reach your financial goals
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Are Boat Loans Hard To Get
Youll typically need good to excellent credit and verifiable income to qualify for a boat loan. If you have poor or fair credit and can wait to take out a loan, it could be a good idea to build your credit before applying.
Tip:
Keep in mind that with secured boat loans, the people applying for the loan typically need to be listed on the vessel title. This means that if you apply with a cosigner, theyll most likely need to be on the boat title.
Some manufacturers and dealers also offer their own in-house financing, which might be easier to qualify for. Be sure to consider all of your options to choose what works best for you.
Learn More: Bad Credit Loans
Guide To Boat Financing
Unless we are talking about a kayak, boat ownership is not exactly known for its affordability. If you dream of owning a superyacht, or even just a modest sailboat or pontoon boat, how much is it going to cost youand how expensive a boat can you afford?
You will probably need to get a boat loan unless you are planning on paying the full price of a boat out of pocket. Financing a boat is a process similar to getting any other type of loan, and can be broken down by answering a few simple questions.
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Water Or Land: What’s Your Pleasure
Whether youre in the market for a new or used boat or large recreational vehicle,;or want to refinance a higher-rate boat or RV loan from another financial institution, LOC offers competitive financing to help keep your budget intact. We offer some of the best boat and RV loan interest rates around.
Our boat and RV loans offer:
- Low fixed rates on new and used boats and RVs
- Up to 115% financing
- Ability to lock your loan rate in for up to 90 days
- Flexible boat and RV loan terms, up to 180 months based on amount financed
- The ability to leverage any equity in your boat or RV to pay off higher-rate debt elsewhere
If you are unsure how much your budget can afford, check with us before you start shopping. Apply online today and well provide you with a pre-approval so you know how much you can afford to spend.
Understand The Costs Of Owning A Boat
Boat loan down payments typically range from 10% to 30%, so make sure you have enough money saved up to cover the cost of the down payment before you apply for a loan. Once you own a boat, youll also have to cover maintenance and related costs. Some of the expenses youll need to cover as a boat owner include:
- Trailer to transport and store your boat: If you dont plan on storing your boat near the water, youll need a trailer to transport it from your home.
- Boat insurance: Boat insurance can protect you in the case of an accident or if anything happens to your boat.
- If you dock your boat at a marina, youll typically have to pay monthly fees for the privilege.
- Registration: Just like a car, many states require boat owners to register their boat. Costs vary widely from state to state.
- Winter storage: If you live in an area where weather conditions arent suitable for boating year-round, youll need to store your boat in the winter.
- Maintenance: Routine maintenance costs include painting, cleaning, and replacing small parts.
- Gas: If your boat is powered by gas, youll need to fill it up regularly.
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How Do I Apply For A Boat Loan
While every lender will have its own unique application process, in most cases, youll need to provide the same information when applying for a boat loan.
Once you have financing, you can start to shop for a boat that suits your needs just dont let a salesperson talk you into buying more than you can afford.
Will I need to know what boat I want before I apply?
It depends on the lender. Some might ask for a model and make, while others might allow you to apply for a ballpark amount, based on your budget. If youre unsure, ask your lender whats required ahead of time.
Fallen In Love With A Boat Compared With Auto Loans Financing A Boat Can Be A Much Heftier Investment
Boats can be more expensive than a car, which means loan amounts can be higher and terms can be much longer.
Just how much you pay to finance a boat depends on a number of factors, including the type of boat loan you choose, the loan terms, your down payment and your credit.
Lets take a look at the different types of boat loans, your financing options and how to apply for a boat loan.
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Calculate Payments With Our Boat Loans Calculator
Use our boat payment calculator to determine a monthly payment that you can afford when looking to finance a new or used boat.
Simply enter your desired amount, estimated;interest rate, and the loan term over which you intend to pay back the loan. Once you’ve input the information, the calculator will generate your estimated monthly payment on your boat loan. Take this number and plug it into your current monthly budget.
Where To Get A Boat Loan
Online loans
Online lenders typically offer unsecured boat loans only. These lenders may be able to approve and fund loans more quickly than other lenders. Online lenders also offer pre-qualification, which shows you what loan amount and rate you could get without affecting your credit.
Some tailor their loan products to borrowers with good or excellent credit , while others accept lower credit scores and focus more on factors like your monthly cash flow, education and where you work.
Bank loans
Youre more likely to find secured loans from banks. Banks may sometimes offer perks to existing customers, like discounts and favorable loan terms. If your bank offers boat loans, it may be a good place to start.
Navy Federal and First Tech both offer boat loans with 15-year repayment terms with rates starting below 10%.
loans from marine lending specialists
Boat loans from marine lenders have similar rates and repayment terms to personal loans. One advantage might be the ability to work with a specialist who understands the boating business, according to the National Marine Lenders Association.
These loans must be secured by the boat and require down payments from 10% to 20% of the purchase price. A bank may require a down payment or make it optional.
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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.;
Best Marine Lending Specialist: Trident Funding
;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.
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Dont finance boats more than 25 years old
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Dont finance live-aboard vessels
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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.
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