Boat Financing

boat loans

Sometime ago it was difficult to find a lender offering boat loans. But now the lending industry has revolutionized. Most boat buyers do not have the cash to buy boat. Lenders then got to see these are clients for boat loans.

A boat loan has then been included among offerings by lenders such as auto and real estate. Many of these lenders are members of the National Marine Lenders Association. There are several sources for a boat loan.

It is good to compare the various financing options you have including boat loan rates.

Types of Boat Financing

  1. Unsecured personal loans
  2. Installment loans

All these types of loans can be used for boat loans.

Unsecured personal loans are given without any collateral. This means the lender does not need any security against the loan before issuing money. You can get access to these loans even with a poor credit history.

Installment loans are expected to be repaid in agreed monthly installments. The interest rate may be fixed or variable within that period. These usually have a longer repayment period.

All these types of loans can be used for boat financing. Financer.com compares these types of loans and the various boat loan rates. Use the calculator above to compare 13 lenders offering online boat loan.

How Much Does a Boat Cost?

A boat may be more affordable than assumed. A brand new boat can cost $250 per month. Boat loan rates differ depending on various features of the boat. If the boat has a berth, galley and head, the rate may be deductible.

You can determine what size of online boat you need by looking at your monthly budget.

What is the application Process?

Applying for a boat loan has various requirements depending on the lender. Some lenders will accept written application. Others will require a phone application.

Income verification is also required. Other details include

  • Tax returns for the past two years
  • A personal and financial statements to show your assets and liabilities
  • The loan amount to be borrowed

The total cost of the online boat loan is inclusive of other details. These include the purchase price, any additional accessories and sales taxes. There are also documentation expenses.

The Boat Loan Underwriting Process

Your credit history will be reviewed. This is to review your past loan repayments. The boat will need to have a realistic market price tag. Your income is an important factor when looking for boat loans. Remember that the boat will often require maintenance.