Most boats over $25,000 are financed. Marine lending has its own rules. Here's how to get the best deal.
Marine loans are secured by the boat (like a mortgage on a house). Lower rates, longer terms (10-20 years), but require survey and insurance. Available for boats over $25,000 from marine lenders.
Personal loans are unsecured. Higher rates, shorter terms (3-7 years), but no survey required and faster closing. Better for boats under $25,000 or if you need speed.
Credit score: 700+ for the best rates. 680+ is workable. Below 680 is tough for marine lending.
Down payment: typically 10-20%. Some lenders offer 10% down for strong borrowers.
Debt-to-income ratio: your total monthly debt payments (including the boat) should be under 45% of gross income.
The boat itself: lenders prefer production boats from known builders. Custom boats, older boats (20+ years), and sailboats can be harder to finance.
Shop multiple lenders. Marine lending is competitive and rates vary significantly. Try: your existing bank, a marine-specific lender (Trident, Essex, BOATUS), and a credit union.
Get pre-approved before you shop. This tells sellers you're serious and gives you a clear budget.
Shorter terms = lower rates. A 10-year loan will have a lower rate than a 20-year loan, though the payments are higher.
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