Yacht Loans FAQ
What kind of boat can be financed?
We specialize in boat loans for sail and powerboats used for pleasure purposes, but we do have lending sources for houseboats and limited chartering.
What is the current interest rate?
Rates vary depending on loan amount boat age and value. Our rates are always competitive within the industry.
How much of a down payment do I need?
A 15-20% down payment generally offers the lowest interest rates. We may be able to offer 10% down for strong borrowers with an excellent credit history.
How long will the application take to process?
With a completed application and appropriate income verification, we can usually respond with a credit decision the in a day or so of when we receive your loan package.
What is the least and most amount that you will finance?
Our minimum loan amount is $25,000. There is no maximum.
Can I pay off the loan at anytime without a prepayment penalty?
Yes. Our loans do not carry a prepayment penalty.
Is this a “simple interest loan”?
Yes, every loan we write is simple interest.
Are there application fees and closing costs?
We do not charge any application fees. The closing costs vary according to value added services provided. Minimum charges start at around $200 and increase subject to services provided. Vessels requiring US Coast Guard Documentation generally incur charges of about $800. We will handle all the post closing titling, registration and Coast Guard Documentation needed in order to satisfy the loan contingencies.
What is Coast Guard Documentation and does my boat need it?
If the boat you are buying is Coast Guard Documentable i.e., 26 feet or larger, Coast Guard Documentation is usually required. If requested, in some title states, we may be able to state title in lieu of Coast Guard Documentation. Coast Guard documentation is the process of registering a boat with the United States Coast Guard so that the lender can file a First Preferred Ships Mortgage to record our lien on a federal level. Some lenders do require Coast Guard Documentation to satisfy loan requirements.
How do I get my money?
Once your loan has been approved and you have signed all the necessary loan documents and Coast Guard Bills of Sale have been secured, we will issue a check payable to the seller. The check can generally be sent either directly to the seller or to you for presentation to the seller.We can also arrange for wire transfer of funds.
Can I obtain cash against the equity of my boat?
No, we cannot provide “cash out” refinancing, except in our non conforming loan program.
If I own my boat free and clear, can I get “cash out”?
Yes, we may also be able to provide “cash out” to be used to improve the vessel for qualified buyers.
What else should I know about buying a boat?
There’s a lot to boat ownership that makes it different than purchasing other types of vehicles. See our boat ownership articles for tips on financing a new boat, maintaining your vessel, boating safety, and more.
Fill out our boat loan application to get started with the financing process today or contact us with any other questions you have about buying a boat.