Financing options for an older boat

Great news! Well financed too! Keep us posted.

toocoys said:

MAke sure you can get insurance before you buy!! I’m having a hell of a time finding affordable rates on a 1996 model. I’m having to prove at least 5 years of boat ownership and all kinds of other red tape through a company called Americans modern or something. No one is wanting to insure older boats as Liveaboard’s or anything less than $150k is what my agent is telling me.

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Who is your agent?

I may be able to help...

Don’t know if you have key bank on the east coast. The branch in Anacortes Washington told me they will loan on any boat regardless of age. Up to 90% of the survey value.

I just wanted to congratulate wayfarer on the pending purchase and I appreciate you posting this thread. Lots of good info and contacts by everyone who added in. This info will surely come in handy for many including myself. Cheers.

stiggy said:

I just wanted to congratulate wayfarer on the pending purchase and I appreciate you posting this thread. Lots of good info and contacts by everyone who added in. This info will surely come in handy for many including myself. Cheers.

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Thanks Stiggy! I had to put a hold on things to go back to work for the month, but I should be signing the dotted line when I get back. I hope the thread is useful, and best of luck with your hunt!

Cantsitstill said:

Don’t know if you have key bank on the east coast. The branch in Anacortes Washington told me they will loan on any boat regardless of age. Up to 90% of the survey value.

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This may have changed, their website indicates 60' max length and 10 year max age. The age limit could be aimed at smaller vessels, don't know.

People’s Bank just upped their limit to 35 years from 30. However, they won’t touch a liveaboard boat and there are some brands they won’t do past 10 years. A little bit of a case by case situation. I don’t believe they do wood boats but I am not certain. People’s Bank is a small bank located only in the PNW.

FYI, last two posts have replied to a two year old thread thus the changes with bank loans.

A couple updates for some options that some might find helpful, if you are in the (U.S.) Puget Sound market:

Peoples Bank Maritime Lending Department will finance fiberglass 35 years old or younger, some flexibility on the edge of that for a boat in excellent condition. Didn’t ask about wood or steel or aluminum. For a loan amount over $100k they will go out to 30 years depending on the boat. For loan amount under 100k they will go fifteen years. The boat is preferred to be based in Washington State but must be based on the West US coast or Alaska (didn’t ask about moorage in B.C.)

SaviBank based in Skagit County has no hard age or hull type cutoff, but instead each is evaluated individually on the merits. They didn’t blink an eye at a hypothetical mid 1980’s trawler from a known manufacturer. But, the borrower must be a resident of Washington and the boat must also be based in Washington. They seem to have relaxed their former requirements that it be based in Whatcom, Skagit or Island counties. Terms to 15 or 20 years depending on the boat and borrower.

As of late 2021, Trident Funding (Washington) had no lenders that would finance a typical recreational boat older than twenty-five years, and I didn’t get into further details with them.

Hope this helps.

Thanks AF for the update. I do know Peoples had no problem with Steel Hull as well when we worked with them about a year ago. It was 22 years old and didn’t seem to be a big deal to them at all as long as survey came back good. Jennifer there was awesome to work with. Also good to hear about SaviBank. I had never heard of them before but certainly a good option

Another we have used that would to 30 yr old was Seattle Credit Union. Pretty easy to work with but their rates tended to be a bit higher than others.

I’m curious. What’s a boat interest rate compared to a mortgage, same buyer and maturity? Is it similar to just a personal guarantee rate? Margin rate?

Peoples and Savibank are offering between 4 and 4.5% depending on credit score, loan term and loan amount. Not much out there under 4%. Better than a line of credit. Not as good as a HELOC of course.

A couple other US options for going with an older boat.

-Home Equity Line of Credit(HELOC) This works if you have a house with enough equity. One of the local credit unions in Puget Sound is BECU and they have a variable rate loan at 3.59%. They don't care if you use the money on a boat because they stake a claim in your house. I think the only stipulation is that you use the money for something legal. I called them about a boat loan and they steered me to a HELOC. I think you can lock in a fixed rate around 4%.

-Pledge Asset Line with Charles Schwab, if you have a nest egg with Schwab they will loan against it similar to a margin loan. Depending on your nest egg you can get under 3% however this will change as rates go up. If the fed raises rates by 2% you'd be looking at a 5%(3% now + 2% increase) https://www.schwab.com/pledged-asset-line Since rates are going up this would probably only pencil out for a shorter term loan. Locking in a rate off a HELOC may be a better longer term play.

Finding money may be easier than finding the insurance on an older boat.

Yes, I think under almost any scenario, locking in a rate now, asap, would be a smart move.

This topic made me think what the options look like in a country with a negative interest rate. Does anyone no what that means to the boat buyer in one of those countries? Is it the unicorn of all loans where the loan pays for the boat