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Old 30-09-2014, 12:04   #1
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New Information about Liveaboard & primary Residence Loan

I started the following thread which generated a lot of heat, confusion, and comment:

September 15 I am being told that Liveaboard Boats loans are now impossible

In summary - many banks and brokers told me that it was not possible to make a marine loan on a boat that is the primary and sole residence when there is no shore side residence.

Since that post the same information was confirmed by marine underwriters at USAA, Suntrust, US Bank.

NOW - everything has dramatically changed!

I just talked with a higher lever manager in Essex Credit:
- live aboard loans as primary residence are easily done at Essex
- a live aboard loan carries about a 1/2% premium over the same used boat loan amount that is not a primary residence
- a 25% down payment will be required

- full & detailed information must be provided
> 2 years of 1040s
> insurance quote for new boat
> slip rental fees for new boat
> copies of account statements for all assets

The Essex manager was very helpful, friendly, and easy to work with.

Now - which boat do we want?
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Old 30-09-2014, 12:14   #2
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Re: New Information about Liveaboard & primary Residence Loan

Congratulations with your success. It seems good things can come with those that persevere! Keep us posted with the boat search.
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Old 30-09-2014, 12:38   #3
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Re: New Information about Liveaboard & primary Residence Loan

This is a standard loan. Both my bank and credit union do this - as a boat loan. Liveaboard before or after is not an issue. They both loan at 80% of NADA or surveyor value, whichever is lower. Boat must be insurable, and insured during loan period. Interest on those loans can be itemized since the boat is both security and residence.

Bank has highest rates. Credit union is lower. Essex, even lower.

When the lifestyle is not usual, it saves time to deal with the decision makers, the managers, when talking about loansl.
Now get the production boat.
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Old 01-10-2014, 16:25   #4
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Re: New Information about Liveaboard & primary Residence Loan

So as someone myself looking into financing a boat eventually for liveaboard, would you all recommend Essex?
I don't want to get screwed over, but a nice low rate is nice too.
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Old 01-10-2014, 16:56   #5
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Re: New Information about Liveaboard & primary Residence Loan

I have not completed the transaction so I can not really offer an opinion.

However none of the following lenders that I have dealt with in the past or or mortgage brokers I talked to during the last month were willing to make a live aboard loan where we had no shore side property:

- BofA (no boat loans at all)
- Key Bank (no boat loans at all)
- USAA
- Boat/US
- our credit union
- Sterling Associates
- SunTrust
- a local private mortgage broker

so I guess Essex is a great company
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Old 15-10-2014, 06:30   #6
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Re: New Information about Liveaboard & primary Residence Loan

I have read some bad things about essex. mainly sounds like they take a while to approve and such. Also some notes on lack of communication.

Being a patient man, i can deal with all that if the deal is right. But will they also give you a loan on a boat older then 10 years as now I'm hearing most lenders wont.
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Old 15-10-2014, 13:52   #7
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Re: New Information about Liveaboard & primary Residence Loan

The answers you get will depend on the questions you ask.

Ask for a specific type of loan, and you could get a 'no' even though that institution could offer you some other type of loan.

Tell them a summery of your situation, the boat you're interested in buying, what you plan to do with it, and them ask how a loan with them would work, and you get the information you need to make a loan happen.

Loans are possible for older production fiberglass boats. I haven't talked with Essex. If you want a loan from Essex, ask what they require and what they'll do.
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Old 31-12-2014, 09:58   #8
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Re: New Information about Liveaboard & primary Residence Loan

we close jan 5th with Essex. No problem with communication. Just keep in mind the age of the boat. will no finance 30 years or older. If 25 or older 30% is required.
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Old 31-12-2014, 10:23   #9
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Re: New Information about Liveaboard & primary Residence Loan

Are you currently living aboard and buying a different boat?
If not, then why not just get a boat loan. (non-liveaboard) There isn't anything saying you cant change your lifestyle and live aboard right?
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Old 17-11-2015, 11:36   #10
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Re: New Information about Liveaboard & primary Residence Loan

I just applied with essex... hopefully it all works out
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Old 25-10-2017, 23:45   #11
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Re: New Information about Liveaboard & primary Residence Loan

What is the interest rate, loan duration etc (with Essex) typically available?
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Old 26-10-2017, 09:18   #12
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Re: New Information about Liveaboard & primary Residence Loan

our interest rate is 3.5% for 15 years. We also had to put 30% down
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