rlj676

Credit unions do. They "don't know any better" and will treat them like any other boat, you just have find the CU that will do the terms you want, approve you etc, but they're out there.

rlj676

Trust me, I have plenty of blame for all the clowns that bought stuff that they couldn't make the payment on, or didn't have fixed interest knowing they were on the edge, etc, but the damn banks THEN didn't care, but suddenly now those of us who are responsible have to beg and jump through hoops for 8+% loans on a boat!

It can be done, but it shouldn't be that rough for someone with A+ credit, or business owners, etc who have no indication they can't make the payments.

WMF

The problem is credit unions will only do 7 years on boat loans, on a 60K boat that is a large monthly payment!!

rlj676

Not really, keep looking.

Plenty will do 15, and some even 20. I found a few that would do 20 years amortization with 7 yr balloon, etc. It takes some legwork on the internet to find 'em, but they are there. Some with rates as low as 5.75 for 15, but they still are pretty strict on who they'll approve, and you have to be able to join them too of course.

If you were in MI I have a list of them I found.

cwhitehurst

Its just not like it was. I realize times have changed and there are a whole new set of rules. I wouldn't want to be a lender right now for sure. I also wouldn't want to be someone who needs money in a bad way.
I know I have to make adjustments. I'm more than willing to wait till my bonds come due and I can then buy the whole thing in cash should I find one.

BLee

The reason these types of loans aren't as common anymore, is the same reason everyone is mad at the banks for loaning to people they shouldn't have.

The depreciation on a performance boat after 20 years is totally lopsided in comparison to the interest on these loans, and that's if the boat is still in even average condition. The original buyer rarely is the one that owns the boat for the full 20 years, and in many cases can't sell it for the remaining balance on the loan. Those that are ONLY concerned with if they can make the monthly payment, usually end up having to write a check for the balance, which isn't always possible. Throw in a serious mechanical problem, and the hole gets deeper.

Baja_man

I agree, I am going through this process now, granted my loan is alot less, $37,000, but I found a 15 yr, 6.75%, no money down loan. I had to go to a few to find but they are out there. The loan officer said if it was only $35K he could approve it himself anything over that had to go the next step higher but still am approved. I tried Essex and they said they would only give me 60% of what I wanted due to "High Performance" boat. I also called e-loans and he would shop it around but required 10% down and would end up between 8-10% interest. All this is based on a high 700 score like 780 or so, verifiable income and less than 15% debt to income ratio. Some banks/credit unions are all over the place no one is the same and you just have to be patiented and shop around the only unfortunately thing is some deals may fall through do to the time it takes to get the whole process approved. Mine has been ongoing for about 1 1/2 weeks now and still haven't closed. I have also lost out on two other boats due to not getting financing in time.

Baja_man

When shopping around I also gave Key Bank a try and they approved the $37K, $0 down but had interest rates at 8.75%. They did not even verify income either.

Biggus

Interesting, I was under the impression that Key Bank has pulled out of marine lending altogether.

cigrocket

That was my understanding. Key bank was doing 0 boat loans as of the 1st of the year.