Financing Experiences & Suggestions

[Chuteman]

Been advised to line up financing before searching for a boat. Yacht loan brokers preferred vs going directly to a lender.
Wondering what your experiences have been, recommendations & any restrictions you may have run into for a boat that will sail in foreign waters vs home port (USA/CA.

[Weyalan]

I financed my yacht purchase by getting a re-valuation on my house and re-mortgaging...

[Charlie]

Chuteman:

Keep your mouth closed. Don't say that you plan on leaving the country. You want to be Joe Stable. Banks like Joe Stable. Correct ratios. Steady job. Once you have the loan then you can leave the country.

Refinancing house is probably easier.

[hellosailor]

Chuteman, you'll find each lender has different rules not just different rates, so it will pay to shop around. But if too many lenders do credit checks on you in a short time--that hurts your credit rating too! So, by all means ask them about their polciies and terms but don't ask for an actual pre-approval or credit check until you are gong to contract.

Contracts can be written as "subject to survey and finance approval" and brokers know that sometimes the financning won't happen, that's not unusual.

Among the differences, some lenders won't touch a boat more than 20 years old, or 30. Will require a survey, any survey, or a particular survey. Might have costs besides the obvious finance rate--ask if there are *any* other costs. Probably will require loss insurance, ask them how much of what kind. And they'll ask what or when you have owned a boat before, some won't do first-timers above a certain boat size/age/cost either.

[markpj23]

Not affiliated at all... (disclaimer)

The folks at Excel Credit were a joy to deal with. No garbage fees - very straightforward. I highly recommend them.

[Chuteman]

Gang:
Thanks for the ideas & advice..............will definitely help.

Hellosailor - good reminder about multiple credit checks as I've seen that happen before. Rules...........lenders love them along with fine print.

Thanks again to all...and will certainly accept more help.....

[Holding Pattern]

We did not want to go through financing and have to worry about making payments while cruising - especially considering the insurance requirements of some lenders.
So we had an estate sale, a house sale, a car sale. When we had nothing but the clothes on our backs and our cats, we bought HP and invested the rest wisely (hopefully wisely)
A bit unconventional but at 33 banks just laugh.

[Chuteman]

HP:
Thanks for your input. More than have a few people have followed your approach or used home equity financing.
The insurance challenge is definitely linked...........& potentially restrictive when tied to a bank.
What did You end up buying with all that cash You were able to gather up?
Invest wisely - would like to know how to do that too.

[Holding Pattern]

We bought a 1974 Challenger. Staysail ketch rigged. V turned into watertight bulkhead/chain locker/sail locker/holding tank... highly custimized. She had returned from a circumnavigation, previous owners had owned/lived-aboard for 20 years - their only home - so lovingly maintained. She is exactly what we were looking for... right place, right time.
My wife is legally blind so cockpit rigged was a must, smaller sail area... so her considerations were highly taken in.
IMHO investors are like sailors - very specific opinions and they cover the entire gambit... maybe it is that risk tolerance...