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Old 26-09-2013, 17:24   #1
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Boat Loans

My husband and I are seriously considering liveaboard. Now we will need to sell our home in order to purchase a boat. We are looking at Carver and Silverton, as well as Hatteras' to liveaboard. Pricing around 100K-150K. We will have to sell our home and yes finance the boat. Here is the kicker: My husband contacted a company today that was recommended by a broker we have been dealing with. This company deals strictly in boat loans. When my husband mentioned that we would be selling the house and using the boat as permanent residence she responded that the finance company would not give out a loan to anyone wanting to have permanent residence aboard that all boat loans are strictly considered for recreational boats.

Has anyone ever run into this problem with obtaining a loan to live aboard when having sold their permanent residence?

Thank you
Saltwater's Wife
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Old 26-09-2013, 17:29   #2
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Re: Boat Loans

No as a matter of policy I've never heard of that. Perhaps less information for the finance rep?

I had good luck with Sterling Acceptance, there are others. Boat can't be too old (mine was a 22 year old Pacific Seacraft though) and they will want very good credit and some liquidity. None of their business how much time I spend in my second home. The interest is tax deductible, fyi.
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Old 26-09-2013, 17:54   #3
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Re: Boat Loans

Thank you Cheoah. I thought the same thing. I was just reading up on marine bankers and they were saying that the loan can be tax deductable if the boat has a gallery, head, and berthing.
We are learning and so nice to know we have a place to post questions and get lots of results
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Old 26-09-2013, 22:28   #4
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Re: Boat Loans

When sourcing a marine loan, I'd have to agree that sticking to the basics information wise is better. Some lenders require a higher down payment for liveaboards, as well as require an escrow account for the insurance. Others will automatically decline the loan if you mention liveaboard- yet it's OK if you move onboard after the loan is funded. When we purchased our boat in November, we went with a lender that doesn't like liveaboards- and I never found anything in the loan docs about liveaboards.

The bottom line is that lienholders generally don't care, as long as the note is paid in a timely manner.
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Old 27-09-2013, 04:43   #5
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Re: Boat Loans

Thank you Pau Hana
We are learning - less is more
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Old 27-09-2013, 10:13   #6
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Re: Boat Loans

Just out of curiousity, when applying for a boat loan is there a check box on the form that says "We will not be living on this boat"? Or is there another way they make you affirm that?

If you get a loan and then decide to live on the boat, and there is some type of accident, would insurance deny your claim because you never said you were going to be living aboard?
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Old 28-09-2013, 01:35   #7
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Re: Boat Loans

Best plan IMO is to forget the loan and cut the size to fit the $.
Loans do not = freedom.
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Old 28-09-2013, 03:51   #8
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Re: Boat Loans

Well said DumnMad. However, I applied for a 30.000 Euro loan for a boat just over a year ago and it was declined
A month later I applied for a 200.000 Euro loan for a house and that was approved.
Now, I'm selling the house for a nice profit and will buy the boat CASH
I suppose you can't buy a house and disappear with it lol
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