BOAT LOAN FAQs
Our goal at Pleasure Craft Lending is to
keep our clients as informed as possible before making a large
monetary decision. Our most frequently asked questions are
If after your review you still have questions
that we did not cover, please feel free to contact us directly
by calling 1-877-885-3223.
- Does my credit score determine my interest
rate to secure a boat loan from a marine lender?
- Do I need to choose the boat, or get the
- How do I start the process of obtaining a
boat loan from a marine lender?
- Am I required to have marine insurance at
the time of my boat purchase?
- Will the application information I provide
be secure and private?
- What type of personal information will you
need to collect from me once approved?
- How long of a purchase term will I be offered?
- What type of loans do you offer?
- Will I be required to have a down payment?
- What if I want to refinance my existing
- Why finance instead of paying cash?
- What is U.S. Coast Guard Boat Documentation?
- Do I have to live inside the U.S. to get
a boat loan?
my credit score determine my interest rate to secure a boat
loan from a marine lender?
Your Fair Isaac credit score is part of
the interest rate determination when a lender reviews your
loan for approval. The higher your score of course, the better
your interest rate, and the more lending power you have in
terms of dollars. If you do not know your credit score, and
would like to review it to see what the lender will be looking
at when making your loan decision, please visit TRUE
CREDIT prior to applying.
2. Do I need to choose the boat,
or get the loan first?
You do not have to have the exact boat lined
up for purchase, however, in order to have an idea of how
much you will need to borrow you should shop around and get
a value on the boat you are interested in purchasing. You
can pre-qualify for a boat loan prior to choosing the boat
to give you upfront knowledge as to what you can be approved
3. How do I start the process of
obtaining a boat loan from a marine lender?
You simply complete an online application
or print out a copy of the downloadable application using
Adobe Acrobat and fax or mail it directly to the lender.
4. Am I required to have marine insurance
at the time of my boat purchase?
The boat must be covered for property and
liability prior to finalization of the loan stipulating the
marine lender as the lien holder. There are many riders available
to the insured, such as Hull Coverage, Protection & Indemnity,
Watercraft Liability, All Rick, Specified Perils, Navigation
Limits, Insured’s Deductible. Also available coverage
includes Medical Payments, Personal Effects, Uninsured Boater,
and Towing. For complete details on all of these Riders and
Options please contact your insurance agent. Be sure to check
out all available options and pricing prior to insurance activation.
5. Will the application information
I provide be secure and private?
Yes your application will be secure. Pleasure
Craft Lending and Boat Loan Locator use the most advanced
secure technology available on the market today. Your data
will remain confidential, safe and secure at all times. We
restrict access to your personal information on a need to
know basis to provide you the products and services available
in the course of securing your marine loan.
6. What type of personal information
will you need to collect from me once approved?
To expedite your marine loan application
you will need the following information available to you:
two years federal income tax returns and W-2’s, if self
employed, your most recent financial statement along with
proof of business ownership for 2 years via your corporate
federal income tax returns, a copy of the boat purchase agreement,
copy of any insurance binder, and anything else unique to
your personal situation.
7. How long of a purchase term will
I be offered?
The purchase term offered by the marine
lender depends on several factors. A) the age and mileage
driven on the boat B) the size of the loan C) your credit
history. Rates and terms are determined after review of all
critical information supplied by you and the seller of the
boat. Terms can go up to 20 years on a purchase of $100,000
or greater, and 15 years on a loan amount of $25,000 to $99,999.00
8. What type of loans do you offer?
Simple interest loans, wherein you are only
responsible for interest on the unpaid balance of the loan.
9. Will I be required to have a down
A marine lender generally finances up to
90% of the boat’s selling price, to and including sales
tax and extras. Larger down payments may help you a lower
interest rate on the balance of your loan.
10. What if I want to refinance
my existing marine loan?
Refinancing an existing loan is a great
way to reduce your monthly payments on your existing loan
and or reduce your current interest rate.
11. Why finance instead of paying
Paying cash liquidates assets whereas financing
increases your financial flexibility. Additionally, you may
qualify for IRS tax advantages on the interest paid.
12. What is U.S. Coast Guard Boat
A system administrated through the U.S.
Department of Transportation via the United States Coast Guard
wherein boats are registered and mortgaged. In order to qualify
for U.S. Coast Guard documentation, a vessel must be owned
and operated by a US citizen. The Documentation Office of
the US Coast Guard keeps an abstract of title on each documented
vessel. This documentation states the vessels financial history
and shows the chain of owners from time or original purchase.
This Certificate of Documentation serves as a Certificate
of Nationality and is also an authorization for the vessels
13. Do I have to live inside the
U.S. to get a boat loan?
Only loan application from customers that
are residence within the U.S. borders can qualify for a boat
loan. Our lenders do not do business outside U.S. boundaries.