Can you finance a used boat?

FAQ
Buying a used boat can be a great way to save money and land a great deal. However, there are generally a few extra steps required in order to obtain financing. What do banks require before backing you up on a used boat? Valuation A lender is obviously only going to fund you up to the estimated value of the boat. So how do they determine this value? The most common way is the NADA Guides which are a standard valuation tool for both cars and boats. While these values can vary with different boat manufacturers and are not exact, most lenders use Nada as a ballpark. When creating a Nada guide evaluation, be sure to add in options, trailer, etc to increase the chances of obtaining a larger loan…
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Can you get a mortgage for a boat?

Can you get a mortgage for a boat?

FAQ
The main option for obtaining a "mortgage" for a boat is by purchasing a house boat or a "floating home". A house boat, from a mortgage perspective, must be stationary so the idea of obtaining what most people would consider a mortgage is not going to happen. What about a moving Houseboat? Another common question. You are able to obtain normal boat financing for a house boat but it usually comes at a cost. House boats are typically expensive and resale takes longer than a normal power boat so bank rates are usually pretty high and large down payments are required. Since the Federal Housing Administration does not support floating homes in their program, you may be looking at a 20% or more down payment on your home. Writing off…
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How many years can you finance a boat?

How many years can you finance a boat?

FAQ
As with house mortgages, boat financing length varies from lender to lender but there are some constants within the market to consider. With any boat purchase, it is important to remember depreciation costs as well as your interest rate. Typical boat loan length: 7-10 years Wait! You might say...I know plenty of people with 15, 20, and even 30 year boat loans! Yes, these do exist but the smartest move you can make when purchasing a boat, especially new, is to go with a shorter loan so you stay above water on your vessel. You can generally find VERY competitive loan rates when shopping for shorter loans which will keep monthly payments down and have you owning that dream boat without breaking the bank. For a more in-depth guide to understanding boat…
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