Non Conforming Yacht Loan Program
Providing alternative yacht loan financing for credit-challenged and other unique situations. Designed for individuals that are purchasing expensive, high-quality pleasure craft and are having difficulty obtaining a boat loan commitment from traditional banks and/or loan origination companies.
Call us today to receive the assistance you deserve! 207-929-8100.
|$75,000 Minimum Loan Amount
|$125,000 Minimum Purchase Price
|$500,000 Maximum Loan
|4 point origination charge
|15 year initial amortization
|5 year balloon feature
Serving the boat financing needs of individuals that have been declined for the following reasons:
- Low Credit Score
- Inconsistent Income
- Previous Delinquency
- Unverifiable Income
- Tax Liens
- Recently Unemployed
- Foreign Ownership
- Collection Accounts
- High Performance
- Charter Usage
- Live Aboard
- High debt ratio
- Non-traditional use of collateral
Individuals that are having difficulty obtaining a boat loan from traditional banks and/or loan origination companies are encouraged to apply. Prior to applying for this particular loan program, we recommend that applicants apply to traditional lenders, in order to determine if lower-cost financing is available to them.
Non Conforming Yacht Loan Program Parameters
This program is designed for persons that require non-conventional yacht financing because they do not qualify for a traditional loan. This program is specifically designed for borrowers that fall into, although not limited to, the following categories:
- Previous credit problems including charge-offs, foreclosure and/or bankruptcy
- Difficulty in verifying income or significant fluctuations in income from year to year
- Non-U.S. Citizens
- High debt ratio
- Older collateral
- Non-traditional usage
Due to the fact that higher than market interest rates, it is recommended that loan candidates apply to at least one traditional lender before exploring this alternative.
Highlights of the program are as follows:
|Minimum Credit Score:
|Minimum Finance Amount:
|Maximum Finance Amount:
|Default Rate of Interest:
||Greater of $3,000 or 3% of finance amount. Payable upon loan approval
|Minimum Down Payment:
||35% of purchase price, excluding applicable sales tax and registration fees
||60% of lesser of purchase price or survey
||15 year scheduled amortization with balloon payment at 5 years
||3% for first 3 years of loan term
||Required on all used boats. Surveyor fee payable by borrower.
|Required Lien Recordation:
||US Coast Guard Ship Mortgage, if available, payable by borrower
||Title Insurance Policy, payable by borrower
- Completed and signed credit application for each applicant
- Completed personal financial statement with detailed asset information
- Year end business financial statements (or federal tax returns) for self-employed applicants
- Last two years of personal tax returns and w-2's
- Verification of liquidity and source of cash down payment for collateral
Borrower was having difficulty obtaining a traditional loan approval as a result of a previous business failure which forced borrower into bankruptcy. Subsequent to the bankruptcy filing, borrower began working as an executive at a nationally-recognized Fortune 500 company, reestablished his credit and accumulated significant savings. As a result of borrowers’ reasonable explanation for the bankruptcy, paired with a significant cash down payment, alternative lender advanced $250,000 against a brand new power boat with a purchase price of $400,000.
Borrower was having difficulty obtaining a traditional loan approval as a result of his inability to verify enough taxable income to substantiate the loan advance. The borrower had a decent credit score and had accumulated a significant amount of cash. As a result of these factors, alternative lender advanced $100,000 against a late-model sailboat with a purchase price of $160,000.
Non US Citizen/Foreign Owner
Borrower was having difficulty obtaining a traditional loan approval because he was not a US citizen, which precluded him from delivering a first-preferred ship mortgage to a lender. Borrower had resided in the United States for many years, having owned a home and a restaurant here. As a result of Borrowers’ long-term presence in this country, alternative lender advanced $400,000 against a late-model sportfishing boat with a purchase price of $600,000.
Non-Traditional Boat Use
Borrower was having difficulty obtaining a traditional loan approval because he intended to utilize the boat as a vacation captained-charter vessel in the Bahamas. Borrower had excellent credit and liquidity. As a result of these factors, alternative lender advanced $200,000 against a purchase price of $300,000.