How to buy a boat in the Med while being in the US?

[serpa4]

I have a couple boats I'm considering in the Med for about $350k USD. I have been pre-approved, have great credit 800+, have $150k down payment also. However, my loan person who works with several banks, says the boat has to be brought back to the US within 30 days.
I would like to purchase the boat say next 2-6 months and leave it on the hard in the Med. Remain in the US to sell my house, cars, work for some refit money ($30k??) and then fly back to the Med and depart for years to come.
Looks like maybe the boat has to be purchased in the Med, brought home for registration, and make the bank happy, then leave for the next 5 years. Once finance is secured, can they force you to keep it in the US, even if insured for world travel?
Any recommended finance companies to check vice the one telling me no right now?

[Montanan]

Originally Posted by serpa4

I have a couple boats I'm considering in the Med for about $350k USD. I have been pre-approved, have great credit 800+, have $150k down payment also. However, my loan person who works with several banks, says the boat has to be brought back to the US within 30 days.
I would like to purchase the boat say next 2-6 months and leave it on the hard in the Med. Remain in the US to sell my house, cars, work for some refit money ($30k??) and then fly back to the Med and depart for years to come.
Looks like maybe the boat has to be purchased in the Med, brought home for registration, and make the bank happy, then leave for the next 5 years. Once finance is secured, can they force you to keep it in the US, even if insured for world travel?
Any recommended finance companies to check vice the one telling me no right now?

A lender can establish the terms of their loan, including as to where the collateral assets are located, utilized and encumbered. A financing company desires to have their collateral in a jurisdiction of their choosing.
Not dissimilar as to insurance coverage being underwritten with restrictions, e.g. not covering beyond a certain distance from shore, limited to specific country waters, seasonality as to not covering areas where tropical storms commonly arise. US automobile insurance coverage often is limited as to geographical scope of coverage, ditto for medical insurance.

Pursue financing and insurance with firms that specialize in yachts that are blue water cruisers. Ask that upfront don't waste time with lenders that are constrained in the geographical scope. By way of example, regional banks often do not lend on collateral located outside their registered corporate business region, a California bank generally will not lend on a house in Montana.

[letsgetsailing3]

Why not sell the house first, and get the boat when you arrive in the Med? You can still pre-arrange the financing if you choose to go that route.

There will never be a shortage of boats for sale, and you'd avoid a lot of travel, hassle, and carrying costs (including the financing).

I get the temptation of wanting the boat now, but I've also experienced the hassle/expenses of owning a boat remotely.

[serpa4]

Originally Posted by letsgetsailing3

Why not sell the house first, and get the boat when you arrive in the Med? You can still pre-arrange the financing if you choose to go that route.

There will never be a shortage of boats for sale, and you'd avoid a lot of travel, hassle, and carrying costs (including the financing).

I get the temptation of wanting the boat now, but I've also experienced the hassle/expenses of owning a boat remotely.

Lenders also want the person to have a home address....so you are less likely to sail off with their assets. I was told I was less likely to get a loan without a home address and home ownership.

[Sand crab]

Purchase the boat in or near the US. Use it more. The sail to the Med.

[serpa4]

Let me change the topic.
Any recommended finance companies that will finance a boat to a US citizen living in the US while the boat remains in the Mediterranean?

[jmschmidt]

Buy it through a reputable brokerage company in the US like the Moorings (Jim Adams).

[eddy52257]

Originally Posted by serpa4

Let me change the topic.
Any recommended finance companies that will finance a boat to a US citizen living in the US while the boat remains in the Mediterranean?

You can get financing, but it will be expensive as they will have to go to the investment banking market to get the loan. US lenders don't have the appetite for lending on an expensive asset that is not attached to the ground. Too easy for it to disappear. I just went through this and decided to pay cash instead as the rates were about 6%. If you have a brokerage account set up for margin trading you might be able to get a loan from that at a reasonable rate. You could also look into a line of credit on your home - we are reserving ours for if we need cash for some reason but that rate is currently around 4%.

[serpa4]

Originally Posted by eddy52257

If you have a brokerage account set up for margin trading you might be able to get a loan from that at a reasonable rate. Y

Thanks, I'm looking into that option today.