What Do Lenders Look For In A Borrower
Making yourself a good candidate for lenders will go a long way in getting you low-cost financing for your big purchase.
- Steady source of income. You need to show you have enough regular income to afford monthly repayments after bills and debt obligations.
- Low debt-to-income ratio. Your current debts will also play a role. Lenders want to make sure you wont be overextending yourself and putting yourself at risk of default when you borrow a boat loan.
- Liquid assets. Lenders often want to see that you can still handle payments should your employment or income situation change drastically.
- Good to excellent credit. Lenders look for borrowers with good to excellent credit because it shows a history of paying your bills on time.
- Experienced boat owner. Experience with a boat isnt a must, but it may make a lender more confident. Having had a boat in the past means you likely know the ropes.
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.
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
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An Easy And Secure Application Process
You can complete your My Financing USA application in five minutes. Once you finish, our team will call you to discuss your expectations for the loan process and answer your questions, including which terms you may qualify for and how long the process may take. We submit your application to lenders one at a time to limit inquiries that may lower your credit score.
Purchase A New Or Used Boat Jet Ski Or Watercraft With Competitive Rates Starting At 219%
At Greater Texas Credit Union, our goal is to assist our boat-enthusiast members with everything they need to set out into open waters. We provide secured loans for all types of boats, including pontoons, jet skis, personal watercraft, and more.
Members get great perks and features with our boat loans:
- Competitive Rates: Rates as low as 2.19% are available for qualified borrowers
- Flexible Term Lengths: Enjoy loan terms ranging up to 120 months
- No Prepayment Fees: Pay off your boat even faster and with fewer surprise expenses
- Zero Upfront Fees: Save more, guaranteed!
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Best Unsecured Loan: Lightstream
Why We Chose It: We chose LightStream as our best unsecured boat loan because their loans require no collateral, they offer a Rate Beat program, and quick funding.
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No collateral needed for a boat loan
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Simple loan application
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No terms over 7 years
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Loans only go up to $100,000
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Some negative customer service reviews
LightStream is an online consumer lending division of SunTrust Bank, a part of Truist Bank. The company offers boat loans, banking products and services, home improvement loans, swimming pool loans, RV loans, and motorcycle loans. The company was founded in 2014 as a small startup company and has grown into an innovative online lending platform.
LightStream believes in rewarding borrowers with good credit with a simple loan application, seamless loan process, and rapid funding. It offers same-day approvals and can even fund some loans the same day, although others will be funded in a few days. It offers new and used boat loans nationwide as well as boat refinancing. Loan amounts range from $5,000$100,00 and terms are between two and seven years.
Rates start at 4.29% with an applied discount for autopay. There are no processing or prepayment fees and no appraisal fees. Their Rate Beat program offers a rate that is 0.10% lower than the rate offered for the same type of loan from a competitor.
Some customers love the quick application and funding process and the loan knowledge of the agents but others experienced confusion on published rates versus actual rates.
Does Elements Offer Loan Or Asset Protection Coverage
Yes. As your financial wellness providers, we want to make sure that youre covered, no matter what may happen. Thats why we provide loan and asset protection programs. Its just one more way that we look out for your best interests.
To protect your purchase, the following programs are available and can be wrapped into your monthly payments:
- Guaranteed Auto Protection is protection designed to eliminate your unpaid net loan or lease balance in the event your vehicle is stolen or damaged beyond repair. Learn more.
- Debt Protection protects your credit rating during uncertain and stressful times. Your loan payment will be cancelled or suspended for a period of time without penalty, added interest, or being reported as delinquent to the credit bureau when a covered event occurs. Covered events include death, disability, involuntary unemployment, family leave and hospitalization. Learn more.
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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
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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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.
All Types Of Boats And More
Savvy doesnt just finance the run of the mill pleasure craft, we finance all types of boats including yachts, dinghys, jet boats, powerboats, sail and motor cruisers! Have your eye on a jet-ski? We finance jet skis and all kinds of marine recreational vehicles. Better yet, you can buy new or used and from a dealer or private sale. The choice is yours with Savvy!
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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.
Other Boat Costs To Keep In Mind
Beyond the cost of purchasing a boat, here are several other expenses to keep in mind:
As you consider how much boat you can afford, be sure to think about how much a boat loan will cost you over time, too. This way, you can prepare for any added expenses. You can estimate how much youll pay for a loan using our personal loan calculator below.
Enter your loan information to calculate how much you could pay
Check Out: Average Personal Loan Interest Rates
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How Does A Boat Loan Work
We will loan you the money for a new or used boat, and you will pay it back with interest over a specified period of time.
Its good to plan ahead by getting preapproved for your Boat Loan. That way you can have a better idea of what price range you should be shopping for. Being preapproved also gives you good negotiating power with the seller.
Elements can finance up to 90% of your boats value, including tax and license. Its a good idea, though, to put down at least 20% of the purchase price. Of course, the more you pay up front, the lower your monthly payment will be.
Whether you’re interested in purchasing a boat or other recreational water vehicle or would like to change your lifestyle, Elements can help you start your adventure.
Boat Loans And Personal Watercraft
Low Boat Loan Rates as low as 3.24% APR*, new or used. Rates as low as 7.04% APR* for personal watercraft . See all rates.
Purchase or RefinanceHave a passion for boating? Maybe youre looking to cruise around leisurely? Are you hooked on fishing or is sailing more your style? Or perhaps speed is your thingyoure looking for a personal watercraft .
If youre looking to hit the water in the perfect boat for you and your family, Tower has the loan for younew or used. Or refinance your current boat loan to a lower rate, with terms to meet your needs. We specialize in boat financingwell make your powerboat and sailboat dreams come true!
There are multiple loan options to choose from, depending on the size and cost of your boat. Loan amounts are available up to $100,000 with terms up to 144 months. Just tell us what you want and well show you how much boat you can afford.Its that easy.
- Up to 100% financing with little to no money down*
- Flexible terms up to 144 months
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Fill Out An Application With My Financing Usa Today
Our secure application process requires minimal effort. You could get your financing within 48 to 72 hours and get out on the water. We serve people across the 48 contiguous states, and we want to work with you. Fill out an application right now to get started. Do you have questions? You can contact us to learn more.
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
Also Check: Illinois Boating Certification
Best Commercial Loan: Coastal Financial
Coastal Financial
Why We Chose It: Coastal Financial is our top choice for the best commercial boat loan because the company specializes in charter boat financing and will also take care of setting up charter management and boat insurance for you.
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Offers boat insurance and charter management
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No upfront rates
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No published loan fees
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You have to contact the company for borrower requirements
Coastal Financial offers a quick application process and fast funding. It finances new and used boats, charter boats, refinances, and RV purchases. It offers boat loans from $5,000 $5 million and approvals take less than 24 hours. You can apply online or over the phone.
In addition to boat loans, Coastal Financial also offers U.S. Coast Guard documentation, boat insurance, and a boat charter management program. Coastal Financial offers commercial loans for yachts, fishing boats, catamarans, and sailboats. Youll need to contact the company for loan fees and specific loan requirements and terms as they are not available on the website.
Once the borrower and vessel are approved for a charter loan, you put the boat in your companys LLC and you can enter it into a charter program. You can choose how often you want the boat chartered, and when you want to use it, and the company will handle the rest.
Coastal Financial has mostly positive customer reviews with customers appreciating the marine industry knowledge, easy application process, and fast funding times.
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.
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What Is A Personal Loan And Should You Get One
A personal loan is an amount of money loaned to an individual typically without any collateral. Though some lenders do require collateral depending on your credit situation. Though they used to be seen as a solution for people in dire financial straits, today the options and terms are better than ever and more and more everyday people are taking out personal loans.
A personal loan can be a great idea if you have outstanding credit debt and a less than stellar credit score. If you use the personal loan to pay off the credit card, you can improve your credit score by making on time payments of your personal loan.
Even if you dont have credit debt, taking out a personal loan and repaying it is a good way to establish positive credit, which will help you down the road when you apply for a car or house loan.
If you have multiple outstanding debts – or just one – at a high interest rate thats taking a real bite out of your paycheck each month, then a personal loan could really help out. Find a lender that can give you a personal loan with a friendlier interest rate, and then use that to pay off the other debts.
A personal loan can help you pay for home renovations, which can significantly improve the value of your home. This can really pay off if youre looking to sell the house in the near future, or if youd like to increase the value of your home in order to borrow against the equity.
