Boat loan for older boat. Brokers?

[JohnEasley]

Good morning all,

We're in search of a lender that will lend $100k on a 32 year old boat to someone with good credit, a good job, and little debt. Recommendations?

Thanks.

John

 

[smitty477]

Good morning all,

We're in search of a lender that will lend $100k on a 32 year old boat to someone with good credit, a good job, and little debt. Recommendations?

Thanks.

John

Never a typical bank , ever.
- credit union
- HELOC
- a specialized lender like Essex or Coastal (there are a few others as well)

 

[JLD]

John,

Hope you don't mind an add on question.

Are boat loans for a used boat usually a percentage of the appraised value?

Jim

 

[JohnEasley]

John,

Hope you don't mind an add on question.

Are boat loans for a used boat usually a percentage of the appraised value?

Jim

Hey Jim,

Having only had one other boat loan and it was a percentage of appraised value, I would say yes. This boat should appraise well and the loan would only be for about 60% of value. Shouldn't be an issue.

John

 

[Tom.B]

USBank gave us a pretty good rate and service but our new boat is 2000 model year. Our previous loan was with SunTrust. They were okay, but it was a high rate for our ‘86 trawler. Cold call a few brokers in your area and just ask for a reco for a lending institution they have seem people use for older boats.

 

[Comodave]

I had really good service with Cindy Lewis at Sterling. PM me for her phone number.

 

[boater3]

Start with Jen @ Yachtcloser.

 

[Madhatter53]

I had really good service with Cindy Lewis at Sterling. PM me for her phone number.

I'll second Cindy. She got me a great rate and terms and closed very quickly with zero snags on a 35YO 53 Hatteras my, they did the uscg doc as well. She also hooked me up with an insurance co. Tell her Steve sent you.



Cindy Lewis
Marine Finance Specialist
Sterling Associates- Mid Atlantic
Serving Clients Nationwide
410-903-6611
Fax 410-349-0102
cindy@recreationfinance.com
Recreation Finance – Cindy Lewis – Marine Finance Specialist
www.boatbanker.com

 

[Nopistn]

I'll second Cindy. She got me a great rate and terms and closed very quickly with zero snags on a 35YO 53 Hatteras my, they did the uscg doc as well. She also hooked me up with an insurance co. Tell her Steve sent you.



Cindy Lewis
Marine Finance Specialist
Sterling Associates- Mid Atlantic
Serving Clients Nationwide
410-903-6611
Fax 410-349-0102
cindy@recreationfinance.com
Recreation Finance – Cindy Lewis – Marine Finance Specialist
www.boatbanker.com

I just applied for one on a 31 year old boat (1988), she said over 30 years isn't possible.

 

[JohnEasley]

I just applied for one on a 31 year old boat (1988), she said over 30 years isn't possible.

Yeah, perhaps the rules have changed because she turned us down, too. A couple of other companies told us the same thing. We took it as a sign and withdrew our interest in that boat.

 

[Nopistn]

Yeah, perhaps the rules have changed because she turned us down, too. A couple of other companies told us the same thing. We took it as a sign and withdrew our interest in that boat.

Glad it wasn't just me!
She suggested that I look at a newer boat, but a lot of great boats were made 30+ years ago!

 

[timb]

i used a home equity line to buy my slip and 33 year old boat. if you have the option the APR is better also.

 

[boater3]

i used a home equity line to buy my slip and 33 year old boat. if you have the option the APR is better also.

Risking your home over a boat is generally not a good idea...

 

[Donsan]

I played a little what if game with YW to see how many diesel power boats 60' and under, were 30 years old or older and it came out to be almost 24%. That seems like a very high number of boats to exclude from financing if in fact no one will finance a boat over 30 years old.

 

[Ventana]

We just recently did one through Key Bank. They were the ONLY ones we found, out of more than 20 contacted, that would look at a boat over 30 years old. There may be others but not that we found.
The banker we used was incompetent so I wouldn't recommend him, but I think all the issues we had were because of him and not the bank.

 

[boater3]

I played a little what if game with YW to see how many diesel power boats 60' and under, were 30 years old or older and it came out to be almost 24%. That seems like a very high number of boats to exclude from financing if in fact no one will finance a boat over 30 years old.

There are many different types of loans that can be used to finance a boat... there are uncollateralized boat loans, personal loans, collateralized boat loans, etc.

 

[timb]

Risking your home over a boat is generally not a good idea...

i guess if things get that bad the boat will become my home.

 

[Seevee]

Risking your home over a boat is generally not a good idea...

I could argue that ANY loan on a boat, which is a toy, is generally not a good idea. Consumer debt of ANY kind is very high risk and the reason people run out of money and go broke.

BUT, if the boat is your home, one could justify a loan for it. Or, if they can get a load at a lower rate than their investments. And, in some cases, when a deal is just too good to be true, borrowing could be a good idea.

As for using home equity, it's often a much lower rate and better terms. And if free and clear better yet... but theres still risk.

Also, if one can figure out how to make the boat (or toy) revenue producing the banks may look more favorably.

Back in the years, I had a plane(s) that I used in charter, and the banks were very favorable back then to loan money. I could have easily financed the whole thing and it would have paid for itself. I was temped, but didn't. But could be a good way to pay for the boat.

 

[boater3]

I could argue that ANY loan on a boat, which is a toy, is generally not a good idea. Consumer debt of ANY kind is very high risk and the reason people run out of money and go broke.

BUT, if the boat is your home, one could justify a loan for it. Or, if they can get a load at a lower rate than their investments. And, in some cases, when a deal is just too good to be true, borrowing could be a good idea.

As for using home equity, it's often a much lower rate and better terms. And if free and clear better yet... but theres still risk.

Also, if one can figure out how to make the boat (or toy) revenue producing the banks may look more favorably.

Back in the years, I had a plane(s) that I used in charter, and the banks were very favorable back then to loan money. I could have easily financed the whole thing and it would have paid for itself. I was temped, but didn't. But could be a good way to pay for the boat.

History has proven that toys are first to go/payments stopped on. Stopping payment on a home equity line that was used to pay for a boat would put one's home in jeopardy instead of just a boat being repossessed it could be a home being foreclosed on.

Most lenders do not look favorably upon toys (boats) that are revenue generators (i.e. used for chartering, commercial purposes). They are higher risk. You will see higher interest payments as a result and fewer lenders willing to loan. Its not like a home that has a legal income producing apartment or extra unit which a mortgage lender would consider to be favorable.

 

[Flybull]

I've also found recently that even if you can get around the 30+ years on boat age, those lenders still interested won't loan on a boat over 28' LOA.

I'm assuming it's because any larger makes them too hard to REPO...???

 

[BruceK]

Risking your home over a boat is generally not a good idea...

Assuming default raises a personal liability as well as giving the lender the right to sell the secured boat,not sure it makes much difference. Eventually the lender gets a judgement and can execute against assets, incl your house. Unless of course US law quarantines the house from debt recovery.

 

[boater3]

Assuming default raises a personal liability as well as giving the lender the right to sell the secured boat,not sure it makes much difference. Eventually the lender gets a judgement and can execute against assets, incl your house. Unless of course US law quarantines the house from debt recovery.

In most states, primary homes (and some times secondary homes) are protected and a lender would not be able to go after one's home for defaulting on a boat loan.

 

[Seevee]

In most states, primary homes (and some times secondary homes) are protected and a lender would not be able to go after one's home for defaulting on a boat loan.

Not if you have a mortgage on them, like a heloc or equity loan. They will get the house. If one is so financial insecure to risk that, I could argue to just pay cash for the boat, which would be my first option.

 

[Seevee]

History has proven that toys are first to go/payments stopped on. Stopping payment on a home equity line that was used to pay for a boat would put one's home in jeopardy instead of just a boat being repossessed it could be a home being foreclosed on.

Most lenders do not look favorably upon toys (boats) that are revenue generators (i.e. used for chartering, commercial purposes). They are higher risk. You will see higher interest payments as a result and fewer lenders willing to loan. Its not like a home that has a legal income producing apartment or extra unit which a mortgage lender would consider to be favorable.

Well, yes, and no. You would need a proven history to be a favorable creditor. And a home has no more of a "legal" income than a boat.

However, the cheapest loans are SFH, owner occupied with a large down and a really high credit score. But, there IS money out there for good business loans.

Perhaps, I'm not the one to ask as I've had no use for a bank in year, except that the buyers of my homes I sell usually use them, and the notes I take "subject to" I have to deal with banks. But, that's fun.

 

[boater3]

Not if you have a mortgage on them, like a heloc or equity loan. They will get the house. If one is so financial insecure to risk that, I could argue to just pay cash for the boat, which would be my first option.

does not matter if there is a mortgage (or not) on the house if you default on a boat loan that is collateralized by the boat in a state that protects your primary house that you are living in. now lets say you have a loan secured by your home that is for your boat and you default on that. now, your house is at risk.

 

[boater3]

Well, yes, and no. You would need a proven history to be a favorable creditor. And a home has no more of a "legal" income than a boat.

However, the cheapest loans are SFH, owner occupied with a large down and a really high credit score. But, there IS money out there for good business loans.

Perhaps, I'm not the one to ask as I've had no use for a bank in year, except that the buyers of my homes I sell usually use them, and the notes I take "subject to" I have to deal with banks. But, that's fun.

thats a blanket statement. i will counter and say there are many loans with tiny to zero down payment where individuals with moderate credit scores can get access to some of the lowest rates. (some federal and state programs, some with income limits, some without, some for houses in certain zones, some without that restriction)

an investor loan on a house is typically 1%+ higher than something owner occupied. same with boat loans, you say you are going to use the boat for charter or commercial purposes, expect a higher rate. banks view it as higher risk. if you live in a home and owner occupy it is less risk. if you have a legal apartment or second unit with income and owner occupy it is even lower risk.

the history i was talking about was 2008. history showed that people started defaulting on auto loans, loans on toys, and then finally houses. there is actually something going on in the past year indicating auto loan defaults are rising.

 

[Seevee]

thats a blanket statement. i will counter and say there are many loans with tiny to zero down payment where individuals with moderate credit scores can get access to some of the lowest rates. (some federal and state programs, some with income limits, some without, some for houses in certain zones, some without that restriction)

an investor loan on a house is some times 1% higher than something owner occupied. same with boat loans, you say you are going to use the boat for charter or commercial purposes, expect a higher rate. banks view it as higher risk. if you live in a home and owner occupy it is less risk. if you have a legal apartment or second unit with income and owner occupy it is even lower risk.

the history i was talking about was 2008. history showed that people started defaulting on auto loans, loans on toys, and then finally houses. there is actually something going on in the past year indicating auto loan defaults are rising.

Mystery,

Probably true, but I'll stand by my comment. In 2008 there was a crises. Banks were hard to deal with , but I got several of my buyers to get loans on SFHs. The risks are what they are. A solid credit history, with a home, the rates are the best. So, if you want the cheapest money, borrow on your home for the boat. And timing changes dramatically. The lenders seem to go thru the same mistakes every several years. They never learn. So, if you borrow, get them when they are down and get the best rates.

Personally, that's not my thing. I would never borrow on toys, as to me it makes no sense, with the exceptions I listed above. And, toys typically have the worst terms and suspect the highest default rate.

As for "legal" there's no such thing as a "legal" apartment, or second unit.

 

[tiltrider1]

I have seen the OP’s question come up several times on this forum. To date I have yet to see anyone say they actually got a loan on a boat older than 30 years. I am under the opinion that there is no source of money willing to accept a 30+ year old boat as collateral.

I know I had a conversation with Peoples Bank that has a marine loan division. Their comment to me was, “ we can get you the money, we just won’t use the boat as collateral “. They don’t do boat loans on boats over 30 years old.

 

[kthoennes]

We used our local credit union, but then it's an exceptionally good one with great customer service. They didn't really have a lending category for a boat as big as ours so they categorized the loan as an RV. Yes most boats are toys, but when you see what banks so easily lend on giant RV'S - which are often also toys - I don't understand why so many lenders makes boats so much more difficult. We got a good rate but then we were lucky and only had to finance about 50% of the current value, for a relatively short time. 18 year old boat at the time. 20 would have been their limit for RVs.

(I know the topic of loans for toys has been debated 1001 times on the forum so I won't rehash it, but now that we have kids I have a very different perspective. Sure, it's financially wiser to defer my gratification and pay cash years from now but they won't be with us forever. Family memories...)

 

[Gmarr]

there is actually something going on in the past year indicating auto loan defaults are rising.

Someone suggested to me that a ton of loans for vehicles bought under some whims of being a full time Uber driver or making them assume that their uber driving would pay for the car are going under