Boat Money Yacht and Boat Financing
Non Conforming Yacht Loan ProgramAlternative Yacht Loan Financing Available

With a boat loan from Oak Hill Financial you can expect:

  • no points
  • no prepayment penalties
  • terms to 20 years
  • simple interest
  • fixed rates
  • Coast Guard documentation

and of course, personal service.

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.

TERMS
$75,000 Minimum Loan Amount
$125,000 Minimum Purchase Price
$500,000 Maximum Loan
17.99% Fixed
4 point origination charge
15 year initial amortization
5 year balloon feature
18.67 APR

Serving the boat financing needs of individuals that have been declined for the following reasons:

High Risk Boat Loan, Hard Money Yacht Financing
  • Low Credit Score
  • Inconsistent Income
  • Previous Delinquency
  • Unverifiable Income
  • Tax Liens
  • Recently Unemployed
  • Judgments
  • Foreign Ownership
  • Collection Accounts
  • High Performance
  • Bankruptcy
  • Charter Usage
  • Chargeoff
  • Live Aboard
  • Foreclosure
  • Divorce
  • 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:

Program Highlights
Minimum Credit Score: 500
Minimum Finance Amount: $75,000 US
Maximum Finance Amount: $500,000 US
Interest Rate: 17.99%
Default Rate of Interest: 21%
Origination Fee: 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
Maximum Advance: 60% of lesser of purchase price or survey
Maximum Term: 15 year scheduled amortization with balloon payment at 5 years
Prepayment Penalty: 3% for first 3 years of loan term
Survey Requirement: Required on all used boats. Surveyor fee payable by borrower.
Required Lien Recordation: US Coast Guard Ship Mortgage, if available, payable by borrower
Other Requirement: Title Insurance Policy, payable by borrower

Application Requirements:

  • 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

Case Studies

Bad Credit/Bankruptcy

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.

Unverifiable Income

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.

10/20/2014

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