Frequently Asked Questions

Yes, you can finance a used boat.  However, financing for boats 15-25 years old may be more limited then boats inside 15 years old.

New and used boats less than 10 years old often have the same interest rates, terms lengths and down payment options.

Generally speaking, the lowest interest rates will be offered to borrowers with credit scores over 800 and down payments exceeding 20%.  In some cases, shorter than normal term lengths may also be required.  The exact requirements for best rates will vary by lender.

Yes, you can get pre-approved for a loan.  The process is similar to the formal approval process.  A completed application is required, and a hypothetical boat and purchase scenario is required.

Down payment requirements can vary depending on a few factors… the purchase price, the age of the boat, the borrower’s credit score, to name a few.  But generally speaking, down payment requirements are as follows;

$15k to $50k… 10%

$50k to $150k… 15%

$150k to $2m… 20%

$2m+… 25% to 30%

20 years is the maximum term for a boat loan.  However, older boats and smaller loan amounts may have term restrictions.

Loans over $50k and boats less than 10 years old will usually qualify for a 20-year term.

Loans less than $50k and/or boats older than 10 years will typically have terms of 15 years or less.

Other common boat loan term lengths are 12, 10, and 7 years.

Yes, several lenders offer stated income or “no doc” loans for loan requests up to $150k.  Credit score and down payment minimums will apply to these programs.

Most loans under $150k can be decisioned in as little as 3 to 24 business hours.  Larger and more complex loans can take 1-3 business days.  Decision times can also be affected by the seasonality of the boating market and vary by lender.

It’s vary rare to see prepayment penalties tied to standard boat loans.  If there is a prepayment, it usually applies to variable rate loan programs or loans in excess of $1m.

Minimum credit score requirements will vary by several factors.  But generally speaking, loans over $100k will require a credit score over 700, while credit scores of 650+ could be considered for loan requests under $100k.

Most credit approvals on used boats require a full marine survey, especially approvals over $100k.  But there are lenders that only require a basic collateral inspection or do not require a survey/inspection at all for loan approvals less than 100k.

Yes, the lender or lienholder will require the borrower to maintain insurance on the boat as long as the loan is open.  Borrowers are typically required to have an agreed value policy and carry hull coverage or physical damage coverage in an amount equal to or greater than the loan amount.  Additional insurance requirements will apply.

This will vary based on several factors like your driving record, age of the boat, type or style of boat, and the boat’s location.  Assuming you are buying a newer boat, have clean driving record, and are not located in in high-risk geographical location, you can usually expect your annual premium to be about 1% of the insured value.  So, a boat insured for $100,000 might have a annual premium between $700 and $1300.

Unfortunately, we do not have the ability to finance liveaboard boats, or boats used as a primary dwelling.

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