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Old 31-07-2015, 13:48   #1
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Boat financing help

I'm looking for a lender in the US that does financing for boats, and allows for living aboard.

I've been making some calls, and I've hit a few walls, i.e. won't finance if it will be your primary residence, or, (this one will make you laugh), they will do $350,000+ if it is a monohull, but it must be under $100,000 if it is a multihull.. REALLY?!?

We are looking at catamaran's, 2010 or newer, 40-45' range. And price wise, we want to keep it under $450,000.

Before I get flamed by the "anti-finance" people, I've done my research, and ran the numbers, and with the tax deductions for it being my primary residence, and the low interest rates on boat loans, it is financially advantageous to keep our money in investments where they are getting a higher rate of return.

That being said, has anyone financed, and can you recommend a lender?
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Old 31-07-2015, 14:44   #2
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Re: Boat financing help

Banks and insurance companies don't like losing money. If its too much risk for them, maybe you need to consider whether its too much risk for you.

A $450 000 mortgage on a boat? You know when the boat burns down you aren't left with any land, right?

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Old 31-07-2015, 15:34   #3
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Re: Boat financing help

LOL!
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Old 31-07-2015, 17:56   #4
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Re: Boat financing help

If it burns you might not be left with any land but insurance will pay it off if you insure it well and then you can start again

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Old 31-07-2015, 18:59   #5
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Re: Boat financing help

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Originally Posted by Rainh2o2 View Post
If it burns you might not be left with any land but insurance will pay it off if you insure it well and then you can start again

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So you will finance the op? Is it a good investment for you?

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Old 31-07-2015, 19:19   #6
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Re: Boat financing help

Can't the investments be put up as security?

Matt


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Old 31-07-2015, 20:55   #7
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Re: Boat financing help

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Originally Posted by scarlet View Post
... they will do $350,000+ if it is a monohull, but it must be under $100,000 if it is a multihull..
See? You already have your answer, you silly goose. Two hulls are one too many.
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Old 31-07-2015, 21:27   #8
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Re: Boat financing help

Essex
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Old 01-08-2015, 01:17   #9
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Re: Boat financing help

"If it burns you might not be left with any land but insurance will pay it off if you insure it well and then you can start again"

FWIW if our boat burned, we would likely collect around $120,000 on what is a very good policy. To replace her with a boat of comparable size and comfort and as outfitted for moderate style cruising? Double that, plus, admittedly after 10 years owning a boat that is now 13 years afloat.

OP tells us s/he has run the numbers - that's a bit hard to do without an actual loan on offer, no? Remember that +10% returns, well known in recent times, do some years become -10% returns. Loans for depreciating assets? Not so much.

And, piling on, I assume the OP plans to stay stateside vs. cruising to foreign lands, at least during the loan term?


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Old 01-08-2015, 10:06   #10
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Re: Boat financing help

I really appreciate how passionate people are about their opinion of financing.

Thank you to dearmst for providing an answer to my question. If anyone else has an answer, and doesn't want to be pulled into the debate... feel free to pm me...
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Old 01-08-2015, 17:24   #11
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Re: Boat financing help

If you want to do this you need to buy the boat as a second home for now. You can change your mind later about living aboard. Don't tell the bank you are going to live aboard. They will think your crazy, quiting your job and running away.

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Old 01-08-2015, 17:34   #12
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Re: Boat financing help

Us lenders won't finance live aboard. Had a friend rent a apt for 3 months for the address once he got the loan moved on the boat Don't tell them. Once you have the loan they don't care.

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Old 01-08-2015, 18:31   #13
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Re: Boat financing help

Quote:
Originally Posted by scuba0_1 View Post
Us lenders won't finance live aboard. Had a friend rent a apt for 3 months for the address once he got the loan moved on the boat Don't tell them. Once you have the loan they don't care.

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Essex Credit rate tables have live aboard rates. I've also spoken to local banks who would consider my position given I have the right down payment.
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Old 01-08-2015, 18:41   #14
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Re: Boat financing help

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Essex Credit rate tables have live aboard rates. I've also spoken to local banks who would consider my position given I have the right down payment.
I've looked on their page and couldn't find rates for live aboards.

I'm not going to lie to the lenders, or hide informatiom from them. That is not right to do that.
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Old 01-08-2015, 18:43   #15
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Re: Boat financing help

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Originally Posted by scarlet View Post
I've looked on their page and couldn't find rates for live aboards.

I'm not going to lie to the lenders, or hide informatiom from them. That is not right to do that.
The link I supplied goes straight to the rate table for live aboard loans.
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