Expect to pay 15-20 percent down payment on most monohull cruisers. The size of the down payment required will depend on the age, price, and type of vessel as well as on the overall borrower credit profile. Current Lending Climate Interest rates bottomed out around 2014 but they are still low by historical standards and borrowers can expect 5-6 percent rates. Whether you're buying a house, a car or a boat, lenders look for stability and consistency in your employment history, income, and assets.
Lenders know that experienced boaters understand the requirements of marine lending, as well as the ongoing costs of boat ownership and, are less likely to overcommit when choosing a vessel. Having gone through the boat buying process before is a plus.However, even scores in the 600s may be acceptable today so long as other criteria look good. Credit scores in the 700 and 800s are ideal.Having other high value assets helps too as they are potential secondary sources of repayment. Steady employment, a history in the current profession, and a primary residence are factored together by a lender as part of the candidate evaluation process. Lenders look for liquid assets that will cover 12-16 months of payments if an employment situation should change. Just getting into the loan shouldn’t eat up all the borrower’s resources. Lenders want to see that the borrower has managed loans of a similar size before and therefore won’t be overwhelmed by the current transaction.The lender wants to know that you’re not already overextended with other loans. Also, your debt/equity ratio will be important. Financial institutions are also looking to cross-sell their products and high net worth individuals represent opportunities for other kinds of financing including primary residence, second home, auto, RV and even a business. Not surprisingly, a high net worth appeals to banks.
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How to Get a Boat Loan Becoming an attractive borrower today is multi-faceted. At, we'll make it easy with our boat loans and yacht financing tools at Trident Funding. Boaters can expect a rough standard 20/20/5 loan (20 year loan with a 20 percent down payment at 5 percent interest) to be processed quickly and relatively hassle-free.īoat loans can be confusing. You can get assistance and marine lending tools at Trident Funding. With nearly 30 years in the marine lending industry, Trident Funding is preferred boat financing partner. Fear not, there are many experts to guide the borrower and make the process less foreign and daunting. Lenders are doing their due diligence and with today’s access to online resources, it’s easy to do background and reference checks and income verifications, so the process has grown somewhat more complex. But it’s not a world of stated income anymore. Boat Loan Calculator Approximately half of all boats are financed and that percentage gets higher with purchases of new boats. It may be time to dive in and get that dream boat. That said, smaller loans are also getting attention since national and local banks, financial services firms and credit unions have returned to marine lending after the recession.
The average new boat loan today is over $200,000, so there’s been an uptick in larger loans. These days, borrowing is increasingly necessary too as boats have grown bigger and more expensive. Cheap fuel, low interest rates, tons of new boat models and lots of lenders add up to this being just about the perfect time to buy (and finance) a boat.
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