Most lenders will be looking for credit scores of about 700 or higher. You can get a boat loan with a lower credit score, but expect that you may have to pay a penalty in the form of a higher interest rate or a larger down-payment.
Likewise, people ask, can I get a boat loan with a 500 credit score?
You can get approved for a boat loan even with bad credit. … Although it is sometimes possible to qualify for a boat loan with FICO credit scores in the 500s, generally you will need 600+ along with a low debt to income ratio to qualify.
Furthermore, can I get a boat loan with a 670 credit score?
The best rates tend to go to expensive, new vessels — though you can still find a good deal if you have a credit score over 670 and can afford a down payment of at least 20%.
Can you finance a boat with no money down?
In today’s market, marine lenders offer financing with down payments typically in the 10%-20% range, but often there are programs available through various manufacturers that could allow you to qualify for less, or zero-down on new boat specials. … You can apply for a loan this morning and be boating this afternoon.
To finance a boat, you can go in one of three directions:
- Arrange financing through your boat dealer.
- Get a loan from your bank.
- Take out a loan with a lender specializing in marine financing.
While you can technically obtain a boat loan anywhere from 12 months to 20+ years depending on the lender…the average boat loan is between 2-15 years. Boat loans, unlike home loans, are typically going to be less than $100,000 which means the payoff period will be shorter than say a 30 year mortgage.
Standard down payment is 15% but depending on your boat age, loan amount, and loan term the required down payment can be between 10% – 30%. This is the total amount you have already paid toward your down payment. The total amount that you are given for any vessel that you trade-in as part of this purchase.
Buying a used boat typically means that you can take out a smaller loan as prices are lower and depreciation rates are steadier than when you buy new. … If you are purchasing a more expensive boat of $100,000 or more, you will likely be required to provide more information, such as your personal financial statements.
Is LightStream legit? LightStream is a reputable online lender that offers competitive interest rates and an easy application process. While it doesn’t disclose credit requirements, many employed borrowers with good credit scores have a chance of approval.
Many lenders prefer a debt-to-income ratio of around 40 or 45 percent, including payment on the boat loan for which you are applying. Lenders also will look at your net worth and liquidity.
A short loan term for boat financing is going to be anything under 60 months – that’s five years. An average loan term is going to range from eight to 12 years, and a long loan term is going to be 12 to 15 years.
Some lenders (including one from our list above) will offer used and refi loans on boats as old as 19 years. If the boat is of high value, you may even find lenders willing to finance a watercraft as old as 25 or 30 years.