Originally Posted by damionin803
Any sense out there pertaining to lenders actually lending money for a sailboat? Credit scores are both 700+ and will have 10-20% down for a 50-70K boat. I fear that after years of planning and pulling off what many said couldn't be done, we will be high and dry this summer due to the credit crunch here in the US.
I can't comment specifically on your area, Damion (I take it you're in, or near, Columbia
, SC), but if you've accumulated $5-14k for a down payment, you can still go sailing if you're willing to lower your sights a bit. A smaller, less expensive vessel that you buy outright can provide a great deal of sailing satisfaction.
If your dream is to live aboard and cruise
, however, then you may have a problem. I don't know of any lenders willing to lend on a boat with only 10-20% down. And if your limited budget
forces you to opt for an older vessel of sufficient size and capability to live aboard and cruise
, then financing
it will be difficult to arrange due to the vessel's age, in any event.
Insuring it will be problematic, as well, even if it gets a clean survey
. And I would doubt that you could find a vessel like that for $5-14k that doesn't need a great deal of expensive refitting to bring it up to even minimum "cruise-worthy" standards.
Lenders will consider your stellar FICO scores, but those scores alone won't be sufficient to obtain a loan in the current
. A borrower may have a high FICO score, an unblemished credit history
, enough cash to meet a lender's minimum down payment, income
adequate for servicing a loan and a low debt-to-income ratio and still not get the financing
to acquire a boat. That is because lenders now have to look at every
potential loan they make as a failure ending in repossession.
Very few lenders will be eager to get into the marketing
of a repossessed boat.
By all means, don't give up - dreams easily obtained are seldom worth the effort, in my experience, but the ones that test one's perseverance often surpass one's greatest expectations. And anyway, as I stated, I'm not familiar with your area, so it's possible that you may find financing more readily than in some other area.
Best of luck to you in your quest for the right vessel at the right price