Financing options for an older boat

[Nomad Willy]

Finances ugh.......

Thought the part about the boat having babies could be interesting though.

 

[wyoboater]

Well, good luck! Hope the survey goes well! And, as all else in this forum, with no pics, it didn't happen!

 

[Wayfarer]

Finances ugh.......

Thought the part about the boat having babies could be interesting though.

Well, good luck! Hope the survey goes well! And, as all else in this forum, with no pics, it didn't happen!

Trust me, you guys will be the first to know! Thanks for indulging all of my incoherent babbling, lol.

 

[Comodave]

Yes, I do hope it works out for you.

 

[ranger58sb]

Apparently she's looking into a 'ship mortgage' as opposed to a regular old boat loan. From what I can tell, it's basically just a secured loan. The boat itself will be collateral, and if I default, they can repossess it, sell it, and come after me for whatever I owe that the sale didn't cover.

Does anyone here have any experience with a 'ship mortgage?' Apparently anything over 26 feet and 5 gross tons qualifies.

I think that's sorta why boat loan folks often insist on USCG documentation....

Our original loan -- mandatory USCG doc, ship's mortgage -- was with a boat-specific finance company. Got a 1098 every year for interest deduction in taxes, etc.

The bank they used was eventually acquired by another bank, that bank was acquired by yet another bank... 1098s disappeared... and I can tell you the IRS audit process can turn that up in a heartbeat. Fixed with letter to IRS, for 3 years in a row... but a pain in the neck to have to jump through that hoop. Finally my complaints to the recent bank caused them to reevaluate, discover that the loan was secured by collateral so not just a personal loan (duh!), and they started issuing 1098s again.

-Chris

 

[Andiamo2018]

USAA They financed our 36 year old boat less than a year ago.

 

[tn6437]

boat loan

hi, I was in the exact same situation earlier this year. I found financing through general electric credit union. they were happy to do it.my boat is a 1987 model, 35 foot trawler.

 

[divert00]

Just Financed a 32 year old Hatteras

A wonderful experience...

Cindy Lewis
Marine Finance Specialist , Sterling Associates
Mobile (410) 903-6611
Email cindy@recreationfinance.com

 

[Comodave]

Cindy Lewis is who we worked with on our current boat. She was really great.

 

[FoxtrotCharlie]

"Does anyone here have any experience with a 'ship mortgage?' Apparently anything over 26 feet and 5 gross tons qualifies."

In my former life as a commercial/investment banker I placed many 'ship mortgages' with institutional buyers, such as insurance companies. There are normal 'non-gov gty' mortgages, and there is a government guaranty program for American built ships and shipyards - last count I remember was about $145 Mil in mortgages/bonds I placed under the Gov plan - investors loved those:thumb. Make sure the loan she is talking about is not Gov Gty'd one that only covers new construction. And good luck with the purchase - we found ours a couple of years earlier than planned also - pulled the trigger anyway, with no regrets.

 

[Wayfarer]

Thanks everyone for all the tips and connections. I really appreciate it. I was a little nervous when I first heard the term 'ship's mortgage' being bandied about, but it seems legit.

I sat down with my local bank today to get pre-approval. I also talked to Cindy Lewis, and she said she needed to take a look at the ad to see if it's something they're willing to take on. If they both approve, it looks like Sterling has a better rate, and more knowledge on the subject, so I'd likely go with them.

Fingers crossed, and I should know more in the next couple of days.

I sure am excited.

 

[Wayfarer]

...And good luck with the purchase - we found ours a couple of years earlier than planned also - pulled the trigger anyway, with no regrets.

Thanks for that. Yeah, this one really sneaked up on me. Things are gettin' real 'round here right quick, lol

 

[jfwier]

Keybank

In Oct 2018 financed a 1988 model with Keybank in Cleveland, OH. I have also previously financed older boats with them. They required a minimum 20% down, buyer contracted survey and their own valuation process.

 

[Pack Mule]

I hope it all works out for you Dave. That’s a good looking boat and you’ve been very patient waiting for the right boat at the right time. I’m really pulling for you.

 

[Bigal6030]

Sorry I can’t take your photo anymore

 

[KapnKarl]

Bought a 32 year young 42' documented boat in August 2017. Seacoast bank in Florida holds the paper.

 

[Wayfarer]

I hope it all works out for you Dave. That’s a good looking boat and you’ve been very patient waiting for the right boat at the right time. I’m really pulling for you.

Thanks Marty! I'm excited and terrified. It'll be the biggest change I've made since I went off to college. I hope I don't hate it! lol. If it works out, you and Mrs. Mule are welcome aboard any time.

 

[Wayfarer]

Sorry I can’t take your photo anymore

Yeah, I have that effect on a lot of people. I was once told by a guy running a load rig at work: 'Well, you're not much to look at, but you're easy to work with.' lol.

Hopefully I'll be changing my avatar soon! In the mean time, it's googly eyes.

 

[Wayfarer]

In Oct 2018 financed a 1988 model with Keybank in Cleveland, OH. I have also previously financed older boats with them. They required a minimum 20% down, buyer contracted survey and their own valuation process.

Bought a 32 year young 42' documented boat in August 2017. Seacoast bank in Florida holds the paper.

Thanks for the tips. If the two irons I have in the fire crap out, those might come in handy.

 

[Comodave]

Good luck, hope it works out.

 

[EYS]

I'm a boat broker.. Key Bank is diving into the older boat loan sector no limit on the age. I'd suggest giving them a call...

 

[Jimm22n]

Banks for old boat loans

Hi,

Wondering if there are banks that make loans for the older trawlers.

Thanks,
Jim

 

[Wayfarer]

Howdy, and welcome to the forum!

I just started this thread last week, asking the same question. There are some good tips in there.

I haven't completely followed through with the process yet, but I'm having good luck with Sterling so far. Key bank is another worth investigating.

 

[JadePanama]

Another that will do it is Seattle Credit Union. They did ours at 30 but told us they had no restrictions for boats older than 30.

 

[toocoys]

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.

 

[Wayfarer]

Financing...

...


... Approved.

Special thanks to CommoDave and Divert00 for recommending Cindy at Sterling. I'm officially adding myself to her list of satisfied customers.

Tomorrow morning, I'll make my offer. If that goes well, It's on to the survey, sea trial, mechanical survey, insurance, a survey, de-flagging and re-flagging, a small cornucopia of other miscellany, and maybe another survey for good measure.

Guys... I think I'm buying a boat.

Where's the emoji for 'crapping pants?'

 

[klee wyck]

I am so stoked about this that you would think I was buying a boat.....

 

[Comodave]

Glad that it is working out for you. Cindy was very nice to deal with when we bought our boat.

 

[f508]

I want to marry it and have it's babies.

I hope it all works out for you, but remember, it's never really your boat, it's just your turn.

 

[Wayfarer]

I am so stoked about this that you would think I was buying a boat.....