Financing a liveaboard?

[odeapt]

I have just found out that banks don't give loans for liveaboard boats... why is this?

If i got the loan and then decided to live on it later, how would they know? any ways around this?

[Sidney777]

Many people say, don't say live aboard. 9 times out of 10 a person won't be approved for a boat loan. Maybe 9.5 times out of ten. You know that old saying that a bank will lend you money if you prove you don't need it. That applies to boat loans.

[odeapt]

So if I tell them i will use the boat for rec use and then start living on it in a month, is there anyway they can find out? or any repercussions?

[Sidney777]

Originally Posted by odeapt

So if I tell them i will use the boat for rec use and then start living on it in a month, is there anyway they can find out? or any repercussions?

Bank could say you got loan with false info on application and ask you to pay loan back Now. But, unlikely. They could send someone out to your home address on your application to see if you live there. Again, unlikely. But, if you don't pay the loan back a lot of things can happen. Banks don't like live aboard cause you can take boat anywhere and hide from paying loan.
....Heck, you could take it to another country.

[a64pilot]

I had a loan for a short time on my boat, I was never asked what I intended to do with it, I don't think they cared.
However I have been told by my insurance agent that this Summer we will begin an extended cruise of indeterminable length, we will not be live aboards, if we declare ourselves as such, he will have to find us different insurance.
I believe the term live aboard is to some the same as saying homeless, but cruising is acceptable.
I believe the difference is that to some a live aboard is a non seaworthy boat meant for the sole purpose of being a domicile, it is not navigable, many systems like propulsion may not work. It has reached a state of decay to where it is no longer financially viable to refit etc.

[TacomaSailor]

Essex Credit will finance a liveaboard - Rates on Dec 7, 2016

25% Down 4.69% for 10-years and 4.91% for 15-years

https://www.essexcredit.com/home/boat/rates/

[odeapt]

Originally Posted by TacomaSailor

Essex Credit will finance a liveaboard - Rates on Dec 7, 2016

25% Down 4.69% for 10-years and 4.91% for 15-years

https://www.essexcredit.com/home/boat/rates/

Excellent thanks!

[PNWorBust]

Insurers are much, more concerned about liveaboards than lenders are.
The 'homeless' and 'derelict' perceptions of liveaboards are somewhat justified for both of them, as well.
But the risks are higher for an insurer, since the boat owner runs a daily risk of burning, damaging, or sinking his home-boat.

[TacomaSailor]

??? "Insurers are much, more concerned about liveaboards than lenders are." ???

Boat/US has recently lowered the insurance premium on our 40' boat from $1200 to $650 after three years of full time liveaboard status. We neither own nor rent a shoreside residence and they know that.

[Formosa Scott]

Originally Posted by PNWorBust

Insurers are much, more concerned about liveaboards than lenders are.
The 'homeless' and 'derelict' perceptions of liveaboards are somewhat justified for both of them, as well.
But the risks are higher for an insurer, since the boat owner runs a daily risk of burning, damaging, or sinking his home-boat.

Yeah, what interest does a liveaboard have in protecting their home? Absent owners do a much better job of maintaining and looking after their boats

Just FYI liveaboards often make the marina's and absent boat owners aware of problems well before they would find them on their own. Truth be told insurance should be cheaper for liveaboards. Do you really think the derelict type liveaboard that lets his boat sink in the bay has insurance?

[leftbrainstuff]

Originally Posted by Formosa Scott

Yeah, what interest does a liveaboard have in protecting their home? Absent owners do a much better job of maintaining and looking after their boats

Just FYI liveaboards often make the marina's and absent boat owners aware of problems well before they would find them on their own. Truth be told insurance should be cheaper for liveaboards. Do you really think the derelict type liveaboard that lets his boat sink in the bay has insurance?

That is a perfectly logical argument. However the insurance industry evaluates risk in terms of dollars and probability.

If they don't understand something then its risk assessment is high.

They also consider assets that can be moved to be more risky than fixed objects.

sv Sedoza Sakona Liberty 458 hull 12

[Hudson Force]

Originally Posted by odeapt

I have just found out that banks don't give loans for liveaboard boats... .................

It's been a practice of many banks in the US not to give loans for liveaboards, but then there have always been other banks that do and some lenders even specialize in boat loans that include liveaboards.

You might do best to shop for a boat loan as a liveaboard in an area where many boat loans are made. In 1985 (sorry for the old example, but that's the last time I bought a boat) my purchase of a liveaboard boat was made in the Florida panhandle; however, I financed it through a lender in Fort Lauderdale that specialized in loans for boats, airplanes and race horses.

You'll likely need to do some shopping.