Our family’s best memories often involve boating and enjoying nature. We love getting out on the water, whether it’s for fishing, a vacation sailing trip or for some diving.
Boating, on the other hand, can be an expensive hobby. While boat rentals are appealing, owning a boat, whether for retirement or quality time with your children, maybe your dream. Boating can be made more accessible with the help of financing. In this blog post, we will go over where you can get financing for your boat, how long boat loans last, and what to expect during the application and underwriting process.
The majority of people go through their boat dealers because dealers have a lot of experience with boat loans. Furthermore, it is in the dealers’ best interests to ensure that the process runs smoothly, quickly, and painlessly. Others, however, will finance the boat with a home equity line of credit, a second mortgage, or a personal loan from their bank.
This can result in a lower interest rate, but the drawback is that it can add paperwork and make the transaction more complicated. However, it’s worth thinking about because structuring the deal this way could result in some tax benefits.
Working with a third-party lender who specializes in boat loans may also help you get the best deal. Members of the National Marine Lenders Association specialize in boat financing and can offer lower down payments, faster decisions, longer financing terms, or lower monthly payments in exchange.
Factors you must consider when applying for a traditional boat loan are the following:
When all of these considerations are taken into account, a company specializing in boat loans behaves similarly to a company specializing in new car loans. Take, for example, your credit score. It’s easy to check the box if it’s 700 or higher. You may still be able to get funding if it’s in the upper 600s, but you will be paying an extra on the interest rate.
If any of the listed factors above are causing problems for you financing your new boat purchase, rest assured that there are other options available. For example, a specialized boat financing company such as Private Yacht Finance can help you with their “Hard Money” boat financing. Typically, there are no credit checks, documentation, and income required to obtain the boat loan to fit your needs.
Even if you have the cash to buy a boat right away, you should consider your financing choices. Private Yacht Financing will help you keep your cash flow in check, but it can also help you get into a more luxurious “dreamboat” that would otherwise be out of reach..
Banks and credit unions, marine-specific lenders, and your boat broker or dealer are the three primary boat financing sources. Fortunately, Private Yacht Finance, a division of M & M Private Lending group licensed broker & servicing company in the State of Florida, can help you finance your boat.
We provide yacht loans for credit-challenged and other unique situations at Private Yacht Finance. We are designed for people who want to buy expensive, high-quality pleasure boats but can’t get a boat loan from a traditional bank.
Please call us at 305-899-2201 if you are a borrower or a potential yacht owner to address your loan request. During a 5-minute phone call, we will decide whether or not we can help you.
Loans are funded in days, not weeks!