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Old 05-01-2019, 14:55   #16
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Join Date: Jan 2018
Location: Currently sailing western Caribbean
Boat: Moody 425
Posts: 6
Re: Marine Mortgage for Liveaboard

Hi Zengirl, I saw your post about financing. Who did you find a loan with? Was it in the U.S.? I am researching lending companies for financing a new boat.

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Old 05-01-2019, 15:17   #17
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Re: Marine Mortgage for Liveaboard

From a previous cruiser forum post on the same subject.

Then select the liveaboard tab for their schedule of present rates.

All the best and happy of new year.

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Old 05-01-2019, 16:15   #18

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Re: Marine Mortgage for Liveaboard

In the US a lot of these things will vary by state law. For instance, Bacchus really should be aware, as a Florida resident, that Florida is one of the few states where you can go bankrupt and have everything you own seized--except your residence. So if you have a $50 million dollar home, you can stiff all the creditors for everything you were worth, but they still can't touch your home. Now, what happens if your home is on a boat? Right, no lender in their mind is going to want to touch that.

In most (all?) other states, they can seize it. If you happen to stay locked below, hey, that's your problem, they can still seize the boat.

Now complicate things with the banking reforms (Sarbanes Oxley, etc.) after the 2008 crash. Lenders are not allowed to engage in risky business. They can't give you a mortgage unless they can show a reasonable expectation that they can repossess and sell that "home" in a pretty quick manner, at a fairly reliable market price, etc. and none of that says "boat" let alone "used liveaboard boat".

I suspect the same tightness in lending markets, lenders willing to take fewer risks in uncertain times, regardless of whether they are being specifically required to.

And depending on the written terms of a loan, selling off your existing residency and moving aboard full time MIGHT give the lender grounds to declare the loan payable in full immediately. One never knows what will be hidden in there. It certainly could change your cruising grounds, which could require changing your insurance, and if you let the insurance lapse...they notify the loss payee (the lender) and there goes the whole "now due in full" thing.

Be careful about paperwork dances. No matter what the parties tell you--read the papers to make sure it is so. If you're at a closing and someone drops twenty pages of fine print on you, don't be afraid to tell them "You might want to make some coffee, this is going to take me a while to read through." TFB if they don't like it, they could have sent you an advanced copy.

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