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ddsailor25 · 30-08-2011, 13:28

My wife and I have a 3 to 5 year plan of buying a liveaboard sailboat and we'll need to finance probably about 70% of the purchase. I have read that alot of banks don't like liveaboards. Is this true and why? Does anybody have a financial instatution that they used for a liveaboard and want to recomend them?

Thank you,
Dave

Missou · 30-08-2011, 14:59

I sure would like to know about this!

hellosailor · 30-08-2011, 15:05

dave, banks like folks who have roots in a community. Folks who won't and can't fly the coop. Folks who have local assets that can be seized.

Liveaboards? Are vagrants, and can easily move the mortgaged property out of town, state, and country.

So yes, lenders don't like liveaboards, and there's some validity to their point of view.

zeehag · 30-08-2011, 15:09

liveaboards become cruisers sometimes sans warning.....

ddsailor25 · 30-08-2011, 15:20

So what do you do if you want to liveaboard and need financing? Just don't tell them? Will they accept a mailing address of a marina or PO box? I can understand that they don't want someone to default on the loan and sail their boat away. Maybe a co signer would help ease their minds when the time comes.

Dave

ViribusUnitis · 30-08-2011, 15:22

Quote:

Originally Posted by ddsailor25

So what do you do if you want to liveaboard and need financing? Just don't tell them? Will they accept a mailing address of a marina or PO box? I can understand that they don't want someone to default on the loan and sail their boat away. Maybe a co signer would help ease their minds when the time comes.

Dave

No, just find a lender that is willing to deal with that, and OK it.

It'll likly cost you more to get the financing, but it's worth not having the loan be pulled up on you because you weren't fully truthfull.

spostamento nobile · 30-08-2011, 15:53

I'm, rather we're living like cockroaches & working 1.5 - 2 jobs each for the same amount of time so we can avoid the banks like VD.
Might I suggest starting Right Now living life like you are already on the water? Strip down your finances like a virgin on prom night and buy your new floating home outright. Take all that interest that you'll be paying those blood sucking bankers and sink it back into the goal. Just a thought.

Randyonr3 · 30-08-2011, 16:02

Another way to get your boat is to buy new and put into charter ,.. save your funds and in about 5 years, the boat is paid off and you've saved funds to go anywhere you want...........
A friend of mine has a 42 foot hunter in charter, it will be paid off in a couple years... not to bad having a five year old boat for free.. the only drawback is you normally dont get to chose what boat you want.. the charter company makes that choice.............

Randyonr3 · 30-08-2011, 16:04

Quote:

Originally Posted by hellosailor

Liveaboards? Are vagrants,

and I was just getting used to being called a Transiant.............

VirtualVagabond · 30-08-2011, 16:27

Quote:

Originally Posted by Randyonr3

and I was just getting used to being called a Transiant.............

well... how about a Transvagrant then

ddsailor25 · 30-08-2011, 16:30

We have cut down a lot of our living cost. No cable, no internet,no dinning out, no fun except for owning our currrent boat. We don't have a ton of money and we slightly upside down on our mortgage, but we're saving $700 a week towards this dream. After 3 to 5 years we should be good to go.

**boatman61** · 30-08-2011, 16:38

Quote:

Originally Posted by VirtualVagabond

well... how about a Transvagrant then

VV... is that you ready for a night out partying....

JRM · 30-08-2011, 16:45

Quote:

Originally Posted by hellosailor

dave, banks like folks who have roots in a community. Folks who won't and can't fly the coop. Folks who have local assets that can be seized.

Liveaboards? Are vagrants, and can easily move the mortgaged property out of town, state, and country.

So yes, lenders don't like liveaboards, and there's some validity to their point of view.

Right now lenders don't like anyone... I just had a pair of conversations with one this morning. I called yesterday and spoke briefly with her, but she was busy and wanted to call me back today. The first was literally, "Hi, you want to finance a boat that's more than 20 years old. I can't help you. Sorry. Goodbye."

The second was "Hi, I might not have seemed overly helpful when I called you this morning. Have you considered purchasing a newer boat since you can't finance the older one?" My response was, "No. I'm going to use someone else to finance the boat I want. You weren't the first person I called, and I've previously found two people who are willing to finance it. I called you because you came highly recommended from a friend. Thank you for your time."

So I'd recommend shopping around. I did a google search for "boat financing" and started making phone calls. I got much better responses from the phone than from trying the online contact forms or email. Eventually you'll find someone who's hungry enough to work with you.

JRM

Tori · 30-08-2011, 17:02

Quote:

Originally Posted by ddsailor25

We have cut down a lot of our living cost. No cable, no internet,no dinning out, no fun except for owning our currrent boat. We don't have a ton of money and we slightly upside down on our mortgage, but we're saving $700 a week towards this dream. After 3 to 5 years we should be good to go.

If you are able to save 700 a week I don't see how you cannot afford a liveaboard. You don't need a million dollar boat you can start small and work your way up. I don't know how many people living on sail boats have really expensive boats. Maybe I am wrong in that respect but all the local people I have met living aboard have average boats and very full lives. The people I see with the really expensive boats simply come visit their boats and vacation on them but aren't willing to give up their lifestyle on the land and all the other trappings of that life style.