Important Things To Know Before Applying For A Boat Loan
In addition to credit score, here are a few items lenders will want to know before approving an application:
- Employment history Generally, having a strong work history will improve your chances of receiving a loan with fair credit.
- Unsecured vs Secured loan If you want to lower your interest rate, choosing a secured loan which, if unpaid, will allow the lender to take ownership of the boat, might be a better option than unsecured.
- Debt-to-Income ratio Ideally, youll want a debt-to-income ratio below 40% to be approved for a boat loan.
- Down Payment Amount A majority of boat lenders will require at least 10% to 20% down payment before approving your application.
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How To Apply For A Boat Loan
As you get ready to apply for a boat loan, expect the process to be a little more difficult and lengthier than applying for a car loan. Lenders see a boat as a luxury item, said Mann. You need a car, you need a house, but chances are you dont need a boat. Lenders have tougher underwriting standards for boat loans because they realize if someone has financial trouble, chances are they will stop making payments on their boat loan before other obligations.
Mann described the underwriting process as more closely resembling a mortgage than an auto loan, even though boats are typically closer in value to cars.
Lenders may ask to see your bank statements and tax returns to verify your financial information. They could take several business days to go over your documents, especially if you are taking out a secured loan and they need to appraise the boat.
Mann acknowledges the type and size of your boat loan make a difference for the underwriting process. If youre buying a small, $15,000 boat the process can be pretty quick. It starts to get more difficult when youre borrowing $50,000 or more.
What if you have bad credit?
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Are There Any Zero Down Loans For Boats
Zero-down lending is possible but will take a special lender and an exceptional borrower profile, and it will definitely translate to higher monthly payments. Most boat loans are for 15 or 20 years and often there is no penalty for pre-payment. Longer terms mean lower payments but also more total interest paid.
Your Current Financial Status And Long
Before you take out a used boat loan, get prequalified. By doing so, youll know exactly how much youll get approved for and have a good idea of the types of used boats you can buy. When you apply, the lender will evaluate your credit score, debt-to-income ratio and net worth. How stable you are in your job and homeownership will play a role in whether you are approved for a used boat loan.
In addition to evaluating your current financial status, youll want to think about your long-term goals before investing in a boat. For example, buying a used boat today may mean you have to work an extra year or two before retiring.
Best For Bad Credit: Southeast Financial
For borrowers with bad credit, Southwest Financial is a good choice for a boat loan. This lender has no minimum credit score requirements, and loans are available even for borrowers with past bankruptcies.
No minimum credit score requirement
Discharged bankruptcies okay
Rates starting at 4.49% APR
Not available in Alaska or Hawaii
$20,000 minimum loan
High debt ratios may be a limiting factor
With a history dating back to 1936, Southeast Financial has been providing loans and other financial products to customers across the country for over 80 years. When it comes to boat loans, though, Southeast Financial excels at connecting borrowers with poor credit to lenders willing to finance their purchase.
Through Southeast Financial, subprime borrowers can access boat loans ranging from $20,000 all the way up to $4 million, with no published credit score minimum. Borrowers with low credit scores or high debt ratios may not qualify for the best possible rates, but loans are available even to those with past bankruptcies.
New and used boat loans are not available in Alaska or Hawaii, and borrowers are only allowed to finance their purchase if the boat is intended for recreational useno full-timers or liveaboards allowed. Repayment terms may vary according to the loan amount but are available all the way up to 15 years.
Highlights Of Us Bank Boat Financing
No down payment needed While other boat loans may require a down payment for about 10-20% of the purchase, with U.S. Bank, you can borrow up to the entire value of a boat.
Discount for checking account customers If you set up automatic payments on your boat loan from a U.S, Bank checking account, youll receive a 0.5% discount on the APR.
Short and long-term boat loans Boat loans range from as short as 1 year to 12 years.
A quick, simple and free application It takes roughly five minutes to complete the U.S. Bank online application. Youll receive a same-day decision with no fee to apply.
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Boat Financing With A 650 Credit Score
Financing for a boat can occur through traditional banks, credit unions, marine finance companies and boat dealers.
This way you increase the chances of loan approval and will likely secure a smaller interest rate.
You can do this by paying down debt, keeping credit utilization low and saving for a larger down payment.
How To Find The Best Boat Loan Rates
Editorial Note: The content of this article is based on the authors opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.
When youre shopping for a boat, your focus might be on the size, year and model of your new watercraft. But before you start seeing whats out there, consider figuring out your boat loan first. While financing is available, qualifying for decent terms can take some research and preparation.
Whether youre buying your very first boat or are an experienced sailor, this guide will help you find your best rates for your upcoming loan. Weve analyzed the different options available and asked for tips from experts at the National Marine Lending Association and the Boat Owners Association of the United States , a national advocacy group for recreational boaters that also offers services such as boat loans, insurance and towing for boats stuck on the water.
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How To Apply For A Bank Of America Boat Loan
Your next boat loan has never been easier than with our online process. Heres how it works: Complete and submit your application online. Many applications will receive a decision within 60 seconds. If your decision is not ready within 60 seconds, you will be notified via email when your decision is ready.
You may not lose the boat if you default on an unsecured loan, but youll still face consequences, including a damaged credit score and wage garnishment if the lender takes you to court. Online lenders typically offer unsecured boat loans only. These lenders may be able to approve and fund loans more quickly than other lenders.
How Long Is A Boat Loan Term
Boat loan terms can stretch for as long as 20 years, due to loan amounts that can reach into the millions. But just because you can finance a boat for that long doesnt mean you should. Its possible to finance even large amounts for relatively short terms that said, it might be difficult to find terms for less than two years, even for inexpensive boats. Heres more on how long you can finance a boat.
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Banks Credit Unions And Brokers
Banks and credit unions differ widely in the amount they are willing to lend, the interest rate and the loan length.
- Suntrust Bank provides boat loans through two different divisions. offers secured loans to buy or refinance recreational boats that are 25 feet or longer. The loans can range from $25,000 up to $4 million and have terms up to 20 years. Those with good or excellent credit can borrow up to $100,000 without having to put up any collateral through its division Lightstream.
- J.J. Best Banc and Co. provides loans and insurance for new, used and classic powerboats and sailboats and advertises that it can accommodate people with less than perfect credit as long as they have not been late on their mortgage or car payments recently.
- US Bank provides loans up to $150,000 for purchase of new or used boats. These loans have repayment times of up to four years.
- Bank of the West, which has offices on the West Coast, the Southwest, the Midwest, and the Rocky Mountain states, offers loans to enable you to buy your boat. It also offers a cash recapture program which allows you to obtain a loan within 60 days of buying your boat with cash.
Examples of credit unions that lend money for boats are:
Online brokers can help match borrowers with lenders. One example is Lending Tree.
My Story With Lendingtree
So, in January, I decided to let the banks compete and submitted my inquiry for a refinance on our house at LendingTree.com. It was a pretty easy process and it didn’t take a lot of time. I answered some pretty basic questions about the loan I was seeking, terms, personal information and hit the submit button.
In minutes, I was flooded with emails from lenders. Then, a few phone calls from real people started trickling in. I didn’t answer.
I was a bit freaked out. But, I should have known this was going to happen, right? I figured that I’d get some inquiries here and there but instantaneous? It was like these folks were just waiting by the phone and computers just ready to pounce. On me.
One of the first inquiries was from Discover Home Loans. I have a credit card with them and have written about how you can use your . Discover was really my first credit card and while I’ve given them my share of stupid tax over the years, I have generally appreciated how they conduct themselves . So, I responded to them, getting the representative on the phone who had initially contacted me. He was polite and helpful got some initial information from me so he could start the process of my refinance. There was a little more immediacy to his pitch than I would have liked but the guy is trying to a close a deal so I wrote it off as such.
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Chase Boat Loan Rates: Used & New
There are a few factors that you should consider before buying a boat. It is important that you identify the boat that you want and its price and then look at financing options. You must decide what type of loan you will go with if you choose to finance the boat through a loan. A secured loan means that you have to provide an asset as collateral whereas with an unsecured loan you do not have to do that. Choosing the rate is also important. You can choose the appropriate one for you depending on the stability of your income. A variable rate rises and fluctuates depending on the state of the market while a fixed rate means that you will pay a fixed amount in monthly installments. A fixed rate is better if your income is consistent because you can gauge how much you will pay cumulatively and then commit to it every month. It is nearly impossible to predict the adjustable rates. The market might perform well, and you might find yourself paying more.
You can choose to go through a lengthy process or the short and easy way today. Applying for credit online is as easy as filling out an application form. It is advisable that you look around and engage different lenders before you decide to get the loan from a particular lender. This is because there are many offers that you will be presented with but not all will be appropriate for you. Banks are ready to hear you if you do not meet all their requirements. You might get the loan if you pay off your debts consistently.
Top Ten Reviews Verdict
LendingTree covers personal loans, auto loans, mortgage refinances, business loans, student refinances, credit cards and more. It’s easy to use, effective, and will likely save you money.
LendingTree is the ideal one-stop-shop for all your lending needs. Regardless of whether you want to access the best refinance mortgage companies to compare quotes, arrange a personal loan, or take out a home equity loan, LendingTree can provide a rundown of the best rates off the back of completing just one application.
Auto loans, business loans, student refinances and credit cards are all available through LendingTree too, and as an impartial broker, you can feel secure that the products made available to you will be the best that the loan marketplace can offer. As providers will be competing for your business, the cost to you of borrowing should be driven down.
A straightforward and stripped back app makes shopping around with LendingTree quick and easy, or alternatively, you might just want to get an idea how much you can borrow and at what price. Free credit card checks are a plus, while numerous calculators are on hand to help you work out what you can afford.
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Refinance And Consolidation Loans
If you have a lot of different student loans, you might look into refinancing or consolidating them. This allows you to streamline your debt into one easily managed monthly payment.
Consolidation takes all your applicable debt and makes it into one loan, generally at a weighted average interest rate. You can consolidate your federal student loans, for example.
Refinancing loans replaces one or more loans with a new one, often with a lower interest rate, a longer repayment term, or both. If youre struggling to pay high-interest student loans, credit card debt or your mortgage, you might consider refinancing those loans.
Securing A 650 Credit Score Boat Loan May Prove To Be Difficult For Many Borrowers So What Options Are Available For Those With Fair/average Credit
A 650 credit score boat loan will undoubtedly find choppy waters with lenders.
A minimal credit score for boat loans is typically above the 680 range which is considered good credit.
Not only that, but youll be required to carry boat insurance if you take out a loan. Marinas may require insurance as well. Theyll want to ensure that if damage occurs on the boat, theyll receive payment as the lien holder.
So finding a boat loan with a 650 credit score may be difficult, yet, options are available. Lets dive in!
- to view a list of lenders that may assist with boat financing, or
- to view a list of lending-matching networks that may better connect you with a lender.
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What Kind Of Loan Can I Get For A Sailboat
Working with leading marine lenders, BoatUS is able to offer competitive rates and terms to help you purchase a new boat or refinance your existing boat loan. We offer loans for powerboats, sailboats, multi-hull boats, pontoons, and even personal watercrafts.
1. Fill out application Submit a loan application by applying online, calling 1-866-269-2327, TTY 1-800-659-5495 or visiting a branch. 2. Application Processing 3. Finish loan paperwork What might prevent me from getting a loan? Loans are subject to credit and application approval. Credit scores of 690 or higher are preferred.
How Do I Get Started
After youve double-checked youre eligible, follow these steps to compare your loan options:
What do I need to apply?
After you submit your information to LendingTrees site, lenders will contact you with potential loan offers. According to LendingTrees website, your lender will likely ask for your:
- Social Security number
- Information about the type of car youre financing
- Legal documentation of residency
The lender will review your information and approve or deny your request for an auto loan within several days to two weeks.