yacht financing terms

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Finance your dream boat

Here’s what you need to know.

Working with leading marine lenders, our partners are able to offer competitive rates and terms to help you purchase a new boat or refinance your existing boat loan. We offer loans for powerboats, sailboats, multi-hull boats, pontoons, and even personal watercrafts.

Use our Boat Loan Calculator to determine a monthly payment that’s right for you, then fill out an Online Loan Application for our lending partner to underwrite.

• If you are applying for a loan for $25,000 or greater, click here to apply online .

Once your application is completed, a representative will evaluate the application to determine the next steps, in an effort to make the closing process as seamless as possible.

Calculate Payments with Our Boat Loans Calculator

Use our boat payment calculator to determine a monthly payment that you can afford when looking to finance a new or used boat.

Simply enter your desired amount, estimated interest rate, and the loan term over which you intend to pay back the loan. Once you've input the information, the calculator will generate your estimated monthly payment on your boat loan. Take this number and plug it into your current monthly budget.

Boat Loan Calculator

Monthly Payment

Total Loan Amount

Your Monthly Payment is:

Your Max Loan Amount is:

Helpful Terms and Phrases

Monthly Payment What you're paying out of pocket every month to repay your loan.

Number of Years How many years you're looking to pay back the loan (term of loan).

Interest Rate Interest rate accompanying this type loan.

Total Purchase Price This is the total cost of your boat purchase. Don't include sales tax in this amount.

Down Payment This is the total out-of-pocket amount you are paying toward your purchase. 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%.

Deposit This is the total amount you have already paid toward your down payment.

Trade Allowance The total amount that you are given for any vessel that you trade-in as part of this purchase.

Amount Owed On Trade Total loan balance outstanding on the trade-in.

To get started, you will need to complete the Online Loan Application. Our lending partner will do an initial review and credit inquiry and likely will request additional financial information such as tax returns or bank statements to help them make a decision. Once approved, the lender will list any additional items needed prior to closing (for example, a marine survey and executed sales contract). Next, our lending partner will collect information from the seller(s) to finalize the loan closing paperwork. Once readied, our lending partner will send closing documents to the buyer(s) and the seller(s) for completion. Lastly, our lending partner would send the loan proceeds to the seller(s) in accordance with the funding instructions.

Boat loans share some similarities with both vehicle and home mortgage financing. You will need to complete a loan application for our lending partner to underwrite. Similar to a home mortgage, the bank can ask for your personal federal tax returns, proof of assets, and may ask for additional financial information depending on each situation.

Similar to a vehicle loan, the lender has a loan‐to‐value guideline that is based on the book value for used boats and the contract price for new boats. All of the lender's underwriting criteria must be met to offer approval, and these guidelines tend to be more rigorous than vehicle financing. If approved, the lender would outline any additional items needed prior to closing and closing paperwork would be prepared once all of the necessary information has been collected.

You will need to provide basic demographic and employment information, complete a personal financial statement that lists all your assets and liabilities, and provide us with information on the boat you are interested in buying or refinancing. As part of the underwriting process, our lender will likely ask for tax returns and bank statements for non-retirement and retirement assets to verify your income and net worth, a copy of the sales contract, and a marine survey report (on most used boats). At the end of the application, you can securely upload these documents to help speed up the review of your application.

Most applicants can expect to have a decision on their application in 2-4 business days. Our lenders will often ask for financial information before making a decision. 

Typically, our lenders will require a boat to be documented with the United States Coast Guard if it meets the Coast Guard's net tonnage standard. If the boat you wish to purchase is eligible to be documented, our finance department or lender will prepare a First Preferred Ship Mortgage as part of the loan closing paperwork and file it with the Coast Guard as the instrument that secures the bank's lien on the vessel. If the boat is not large enough to be documented with the Coast Guard, a formal mortgage would not be prepared; however, the lender would still record its lien against a state title or equivalent document. In either event, the lien would be released once the loan has been repaid.

Our lenders do not issue pre-approvals that are similar to what you get when purchasing a house. You are able to apply without having a sales contract on a boat, and you aren't locked into buying the boat that you apply with, but you do need to list a boat on the application.

The rates and terms are highly dependent on the boat, so we recommend applying with a boat that is similar in age, length, and type to the one you are interested in purchasing, and use a realistic purchase price. 

Credit requirements vary by lender, but our lenders generally require applicants to have a credit score above 680 with no major credit issues such as a bankruptcy, foreclosure, settlement or charge-off within the past 3 – 5 years.

Generally, marine financing is subject to higher credit and other underwriting standards than that for vehicles or even home mortgages. Our lenders look for applicants with better credit, but there are other companies that will consider individuals with past credit issues.

Our lender will first review your credit score and history to determine if you meet their credit guidelines then review your financial information. When evaluating your application, our lender will look to see that you currently have the funds to make the down payment without depleting your assets, and verify your net worth and debt-to-income ratio (monthly debt payments divided by monthly income) meets their guidelines. They will also review the boat to ensure the purchase price is in line with the market value of the boat by using third-party valuation guides like NADA, BUC and ABOS.

The loan term available will largely depend on the boat you select. We work with banks that can offer terms up to 20 years, subject to the age and type of boat, as well as the loan amount available from the lender.

Once the lender collects all the required information from the buyer and seller, both parties will receive paperwork that they need to sign and notarize. Once the lender receives the paperwork back from both parties, they will disburse funds in 1-2 business days. The buyer and seller do not need to visit a bank or be in the same place to close the loan. If the boat is currently financed, our lender will disburse the funds directly to the lienholder to pay off the loan, otherwise, the funds will be paid to the seller by check or wire transfer.

BoatUS partners with leading marine lenders that consider various types of collateral, including larger, more expensive vessels. Some restrictions do apply — for example, we cannot accept applications for steel‐hull boats at this time.

Use our Online Loan Calculator to determine your monthly payment or enter the desired monthly payment to see the loan amount. to determine your monthly payment or enter the desired monthly payment to see the loan amount.

We recommend you access the NADA Guides Boat Value Online Tool , powered by J.D. Power.

• Loan amounts from $10,000 for boats model year 1998 and newer
• Multi Hull Boats
• Pontoon Boats

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Boat Loan Calculator: See Your Boat Payments

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If you need a boat loan to cover the purchase of a new or used boat, a loan calculator can help you determine what size or type of vessel you can afford.

Use this boat loan calculator to estimate the cost of a personal loan used to finance a boat. Enter your expected loan amount, desired repayment term and annual percentage rate to see estimated monthly payments, interest costs and total payments.

» COMPARE: Best boat loans

How to calculate boat loan payments

You can change your desired loan amount, term or APR to see different results and decide how boat loan payments fit into your budget.

Loan amount: This is the amount you expect to borrow. Amounts for unsecured loans can be as high as $100,000, while secured boat loans can be over $1 million.

Repayment term: This is how long you think you’ll need to repay the loan. Unsecured loans often have repayment terms of two to seven years; secured boat loan terms can be as long as 20 years. Longer repayment terms typically mean lower monthly payments, but you'll pay more in total interest.

Annual percentage rate: This is the interest rate you expect to get on the loan. Factors that determine your APR on a boat loan include whether it’s a secured or unsecured loan, your creditworthiness, income and existing debts.

Boat loan calculator

» Learn more about the best boat loans .

Secured vs. unsecured boat loans

Boat loans are either secured or unsecured. With a secured loan, the boat you’re purchasing is collateral for the loan, meaning the lender can take the boat if you stop making payments.

Secured boat loans may require or give you the option to make a down payment, so you’ll borrow less overall. They also tend to have lower APRs than unsecured boat loans and can be easier to qualify for if you have a low credit score.

Though unsecured loans may cost more in interest, they don’t require collateral or a down payment, and borrowers with good or excellent credit (690 FICO or higher) may qualify for a low rate.

Here are average estimated APRs on unsecured personal loans, based on FICO score ranges:

Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified in NerdWallet’s lender marketplace from Feb. 1, 2024, through Feb. 29, 2024. Rates are estimates only and not specific to any lender. The lowest credit scores — usually below 500 — are unlikely to qualify. Information in this table applies only to lenders with maximum APRs below 36%.

To determine which type of boat loan is best for you, compare the pros and cons.

Common questions about boat loans

Where can i get a boat loan.

You can get a boat loan from an online lender, bank or credit union. Banks and credit unions will be more likely to offer secured loans.

You can also get a boat loan through a marine lending specialist, who acts as a broker for the loan. These loans must be secured and typically require a down payment.

How long are boat loans?

Boat loan repayment terms depend on the type of loan and lender you choose. For unsecured loans, borrowers can expect terms ranging from two to seven years. For secured loans, terms can stretch up to 20 years.

How do I apply for a boat loan?

You can apply for a boat loan directly with the lender. Most lenders offer online applications, but you may need to visit a branch to close the loan.

When you apply for the loan , expect to give personal information (including your Social Security number), details on the craft if the loan is secured, and verification documents such as proof of identity, employment and income.

Approval and funding time vary. Online lenders can usually fund a loan quicker than banks and credit unions. They also let you pre-qualify and see estimated interest rates and potential loan terms without affecting your credit score.

NerdWallet recommends comparing loans to find the lowest rate and best features for you.

Other loan calculators

Personal loan calculator : Check estimated interest rates and payments for a personal loan, based on your credit score.

Credit score loan calculator : Find out what personal loan options may be available to you, based on your credit score.

Home equity loan calculator : See if you’re eligible for a home equity loan and how much you may be able to borrow.

Debt-to-income ratio calculator : Determine your debt-to-income ratio, which is your total monthly debt payments divided by your income.

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• Personal Finance

Best Boat Loans for March 2024

Our choice for the best boat loan lender is SoFi because it offers various loan amounts and terms, a competitive APR, and you can secure the loan with the boat as collateral or it may be unsecured if you qualify. We reviewed 70 personal loan lenders and evaluated them on 31 factors, including cost, loan terms, borrower requirements, and additional features. 

• Best Home Warranties
• Best Emergency Loans for Bad Credit
• Best Personal Loans for Bad Credit

Compare Personal Loan Rates with Our Partners at Fiona.com

• Our Top Picks
• Southeast Financial
• Trident Funding
• Patelco Credit Union
• See More (3)
• Compare Providers

The Bottom Line

• Guide to Choosing
• Alternatives

Comparing Boat Loans

• How to Apply

Why You Should Trust Us

• How We Pick

Guide to Personal Loans

Best overall : sofi.

• APR Range: 8.99% - 29.49%
• Loan Amount: $5,000 - $100,000
• Loan Terms: 24 months - 84 months

SoFi is our top overall choice for boat loans. It's great if you're looking for:

• Quick funding with disbursements as soon as you're approved
• Loan amounts up to $100,000
• Loan terms of up to seven years  

If you want an offshore fishing boat or cruiser yacht with a higher price tag, you'll need another lender. Borrowers had a weighted average credit score of 747 in 2022, so you may need a co-borrower if your score isn't high.

The company was founded in 2011 by Stanford business students to connect graduates looking for financing with alumni. Since launching, SoFi lent over $73 billion in loans to over 6.9 million borrowers.

No origination or late fees

Same-day funding available

Allows joint applications

Strong credit may be required

Relatively low maximum for boat loans

• You must be the age of majority in your state (18 in most states).
• You must be a U.S. citizen, permanent resident, or non-permanent resident alien (including those with Deferred Action for Childhood Arrivals status).
• You must be employed, have an offer of employment with a start date within the next 90 days, or have other sources of income.

SoFi does allow applicants to apply with a co-borrower, and adding a co-borrower to your application can improve your chances of qualifying for a loan and securing a lower rate. 

Best for Large Loans : Southeast Financial

• APR Range: 7.49% - 19.95%
• Loan Amount: $15,000 - $4,000,000
• Loan Terms: 84 months - 240 months

Southeast Financial is our choice for large boat loans. You can borrow as much as $4 million to finance the yacht of your dreams.  

Some of the benefits of borrowing with Southeast include:

• Financing new or used boats through dealerships or private sellers
• Lower credit score minimums than most lenders, approving borrowers with scores as low as 575
• Loan terms as high as 20 years to spread out the cost and reduce your payments  

Apply early because the Tennesee-based lender's approval and disbursement process can take several business days. It doesn't offer financing in Alaska or Hawaii and doesn't finance, houseboats, speed boats, or commercial boats.

High loan maximum

Longer loan terms

Low credit score minimum

Takes several days to process loans

Has limits on boat use

Not available in all states

• You must be a U.S. citizen. 
• You must be 18 or older. 
• You must have a credit score of 575 or higher. 
• Residents of Alaska or Hawaii are not eligible for a loan. 

Although some lenders like Southeast Financial offer loan terms as long as 20 years, a longer term may not be ideal. You'll pay more in interest and, because boats tend to depreciate significantly over time, you could end up owing more than the boat is worth.

Best for Fast Funding : Regions

• APR Range: 9.24% - 29.99%
• Loan Amount: $2,000 - $50,000
• Loan Terms: 36 months - 60 months

Regions Bank can give you a credit decision within one business day. If approved, you can receive your loan funds as a lump sum immediately at closing.  

There are two loan options with this lender:

• An unsecured personal loan
• A secured installment loan with up to $75,000 in financing and lower rates

The boat must be under 30 feet, including the motor and trailer. Even though you can apply over the phone, you must sign for your loan in person at a branch, which eliminates many borrowers as the bank only has. a presence in 16 states in the South, Midwest, and Texas.  

Quick loan processing

No origination fee

Up to 0.50% in interest rate discounts available

Boat size restrictions

Must visit a branch to close

• You must be the age of majority in your state. 
• You must have a valid Social Security number. 
• You must have a verifiable source of income.
• You must be able to close the loan at a Regions branch. Regions operates branches in the following states: Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, South Carolina, Tennessee, Texas, and Utah. 

Best for Bad Credit : Upgrade

• APR Range: 8.49% - 35.99%
• Loan Amount: $1,000 - $50,000

Upgrade approves borrowers with scores below 660. It also allows joint applications , so you can add a co-borrower to improve your chances of getting a loan and a lower rate. 

The application is quick and easy and you can pre-qualify without affecting your credit score. The funds are available to you as soon as the next business day if you're approved

Although Upgrade can be useful if you have less-than-perfect credit, it's not for all borrowers. Its loan maximum of $50,000 may be too low for many boat shoppers, and it charges origination fees as high as 9.99%.  

Quick loan funding

Lower credit score requirements

Low loan maximum

Limited repayment terms

Potentially high origination fees

• You must be a U.S. citizen, permanent resident, or live in the U.S. on a valid visa. 
• You must be the age of majority in your state (18 in most states). 
• You must have a verifiable source of income. 
• You must have a valid bank account and email address. 

Adding a co-borrower to your applications can help you qualify for a loan, but not all lenders allow joint applicants. To find a lender that does, check out the best joint personal loans of 2023 .

Best for Repayment Options : Trident Funding

• Loan Amount: $25,000 - $2,000,000
• Loan Terms: 120 months - 240 months

Trident Funding is a leading boat loan origination company that works with 40 banks and financial institutions across the United States.

With Trident, you can:

• Finance up to $2 million for larger vessels like offshore fishing boats and cabin cruisers
• Get loan terms as long as 20 years, giving you affordable monthly payments
• Be approved with less-than-stellar credit (a low minimum credit score of 600)  

Some (but not all) of Trident's partner lenders charge prepayment penalties , which means paying off your loan can cost you.

Long repayment terms available

No short-term loan options

May charge prepayment penalties

No financing for houseboats

• You must have a credit score of 600 or higher. 
• You must make a 10% to 20% down payment. 
• You must provide recent tax returns and bank statements. 

Best Credit Union : Patelco Credit Union

• APR Range: 8.95% - 17.90%
• Loan Amount: $300 - $100,000
• Loan Terms: 6 months - 84 months

California-based Patelco Credit Union boasts lower rates than most lenders, and you can finance a boat worth up to $100,000. Along with high loan terms, Patelco loans:

• Don't have origination fees or prepayment penalties
• Have loan terms between one and 15 years
• May come with interest rate discounts through its LevelUp program if you make payments on time

Some of the downsides include higher rates on loans with terms of 61 months or longer. And you must become a member to get a loan. Details on joining are highlighted below.

No origination fees

Interest rate discounts available

Terms as long as 15 years

Relatively low loan maximum

Higher rates on terms over five years

Credit union membership required

• You must be a qualifying member of the credit union. 
• You live in an eligible county within California, such as San Francisco, San Mateo or Stanislaus.
• You're a current student or graduate of the University of California, Berkeley; San Francisco State University; or California State University, East Bay.
• You work for one of the credit union's sponsor companies. 
• You have a family member or household member who belongs to the credit union. 
• You are the surviving spouse or child of a deceased employee-member.
• You're a member of the Financial Fitness Association. You can join online; a one-year membership starts at $8.  

Compare the Best Boat Loans for March 2024

There are many financing options available regardless of the type of boat you want. Some lenders, such as SoFi and Upgrade fund loans quickly and allow you to take out unsecured personal loans to pay for your new boat. If you qualify, though, you could choose a secured loan with lower rates from lenders like Trident Funding and Patelco Credit Union.

Shop around to find the best rates and terms. Your credit, the amount you borrow, the age and size of your boat, and how quickly you need the cash will determine which lender you choose.

Guide to Choosing the Best Boat Loan

Where to get a boat loan.

Boat loans can come from several sources: 

• Dealerships : Boat dealerships work with banks and credit unions to offer their customers financing on new and used boats. Some boat manufacturers and dealers may have special financing offers with attractive rates, but you're limited to certain makes and models. 
• Banks : Traditional banks often offer unsecured personal loans and secured recreational vehicle loans that you can use to purchase a boat. If you're a current customer with that bank, you may qualify for a higher loan amount or lower rates. 
• Credit unions : Like banks, credit unions may offer both unsecured and secured loan options. Credit unions tend to have lower rates and fees than other options, but you need to qualify for membership to apply for a loan. 
• Online lenders : Some financial technology companies and online lenders offer secured or unsecured loan options. They usually have quick applications and loan processing times, but they rarely provide in-person customer service. Instead, you have to contact customer support via email or phone. 
• Loan marketplaces : A loan marketplace isn't a lender; instead, it connects borrowers to a network of partner lenders. These platforms can make it easy to shop around for a loan, but the terms, rates, and fees vary between lenders, so it's important to carefully read the loan agreement before committing to the loan. 

Should You Apply for a Boat Loan?

Financing a boat can make sense in some circumstances. A boat loan allows you to take advantage of a good deal and get on the water more quickly, but you have to do your homework to ensure it's a financially savvy decision. According to Investopedia’s 2023 Personal Loan Borrower survey , major purchases such as boats are among the top three most common reasons cited for getting a personal loan.

Many people prioritize a low APR when getting a loan, but there are other factors to consider as well.

Before applying for a boat loan, keep these factors in mind: 

• Purchase price : If you're new to boating, you may be surprised by how expensive boats can be. Even used boats can cost well into six figures. 
• Depreciation : Boats are quickly depreciating assets , so a new boat is worth significantly less just one year after its purchase; if you take out a loan, you risk being " upside down " on the loan or dealing with negative equity . If your boat is totaled in an accident or sold and you owe more than it's worth, you could end up still making loan payments even though you no longer own it. 
• Interest : With rising interest rates, boat loans can have high annual percentage rates (APRs) . Depending on your credit, the amount you're financing, and the lender you choose, boat loans can have double-digit APRs, and the accrued interest charges can cause you to pay much more than the boat's purchase price over time. 
• Fees : Fees vary by lender, but common boat loan fees include origination fees and late fees. Some lenders also charge prepayment penalties, so you'll have to pay an additional fee if you pay off your loan early. 
• Other boat costs : The purchase price of a boat is only the starting point of your total cost. Besides the purchase price, you also need to budget for a boat slip or storage space, maintenance, fuel, and insurance. 
• Other financial demands : A boat is a significant investment. If you take out a loan, you'll increase your debt-to-income ratio, which can make it difficult to qualify for other forms of credit. If you need to apply for a car loan or mortgage in the future, the existing boat loan may hurt your chances of qualifying for a loan. 

Use a loan calculator to find out how much you'll repay over the life of your loan based on the original loan amount, repayment term, and APR.

Alternatives to Boat Loans

Boat loans can have high interest rates and boats can depreciate significantly, so borrowing money to buy one may not be the best idea. Instead, consider these alternatives.

• Pay cash : While paying cash may not seem realistic, it can be a good idea to put off buying a boat—or looking for a more modest model—until you can cover the cost out of your savings. You'll avoid interest charges, lowering the overall cost. 
• Use a boat share app : There are boat share apps, such as BoatSetter and Get My Boat , that function like Airbnb for fishing and water sport enthusiasts. Through these apps, you can use a boat for a day, a week, or longer—with or without a captain on board—when it fits your schedule. You can enjoy the boat without having to take on the cost or responsibility for maintenance. 
• Participate in a fishing charter : If you want to go offshore fishing, joining a fishing charter can be a good idea. You can participate in a charter for a morning, a full day, or even a week-long vacation. Charters usually include groups of fishermen, so the cost is lower than privately renting a boat. 
• Join a boat club : If you plan on regularly using a boat, but aren't ready to purchase one yourself, a boat club can be a useful alternative. Boat club memberships give you access to the club's fleet of boats, and the membership fee may also include educational classes, member events, and insurance. Boat clubs typically involve an upfront fee, and then charge ongoing membership dues. Fees vary by location, club, and the type of boats available, but can range from $1,000 to $10,000 in upfront fees, and monthly membership dues can be hundreds. 

Buying a boat should be like buying a car or truck, which means you should take similar steps before you take it home. Make sure you inspect any boat that you intend to buy and try to do a test run if you can. It also helps if the boat is certified—especially if it's a used boat. Most boats must meet minimum standards and are certified by the National Marine Manufacturers Association.

When comparing lenders, pay attention to the following factors: 

• Collateral : Boat loans can be unsecured—issued solely based on your creditworthiness —or secured, with your boat serving as collateral. Secured loans tend to have lower rates, but the application process can take longer, and the lender may restrict the type and age of boat you can purchase. 
• Credit requirements : In general, you'll need good to excellent credit to qualify for a boat loan. There are some lenders, such as Southeast Financial, that will work with borrowers with lower credit scores, but they tend to have much higher rates. 
• Co-signer or co-borrower options : If your credit is less-than-perfect, some lenders will allow you to add a co-signer or co-borrower to your application. Adding a relative or friend with excellent credit can boost your chances of qualifying for a loan. However, a co-signer is responsible for the payments if you fall behind, and a co-borrower shares ownership of the loan, so it's a big favor to ask someone.  
• Restrictions on loan use : With some lenders, particularly those who issue secured boat loans, there are strict requirements for how the loan funds can be used. For example, the lender may only offer loans for certain types of boats, boats of a certain length, and boats younger than 10 years. 
• Rates : Rates and fees vary significantly between lenders, so it's wise to shop around to find the best options. 

How to Qualify for and Apply for a Boat Loan

Lenders want applicants to meet certain eligibility requirements before they apply for a loan. The following is a list of some of the most common factors that lenders consider. Keep in mind that some weigh certain factors heavier than others.

• Your age:  Lenders cannot discriminate based on age. However, some states require that borrowers meet minimum age requirements before they can enter a legal financial contract with a financial lender.
• Legal residency:  Just like age, lenders can't turn you down because of your national origin. They may ask you about your residency status to determine whether you can pay back the loan. Keep in mind that non-residents and non-citizens may still qualify, but it may be tougher to be approved.
• Income:  Almost all lenders ask you for your income and employment information. This is to ensure that your source of income is enough to repay the loan. Some companies may have an income threshold before you can borrow.
• Debt-to-income (DTI) ratio :  This ratio represents how much of your income goes to pay off your debts every month. As such, it helps lenders see how much of a risk you are if they approve you for a loan.
• Credit history and score:  The majority of lenders use your credit history and credit score to qualify you for a loan. Although these factors don't make or break the decision, they may also influence your loan terms, amount, and interest rate.

To qualify for and apply for a boat loan, follow these steps: 

• Decide on a budget . Sit down and review your expenses, income, and other financial goals. Calculate how much of your monthly cash flow you have left over that you can allocate towards the purchase and maintenance of a boat. Be sure to account for ongoing expenses—such as repairs, fuel, and marina fees—and not just the purchase price.
• Choose a boat type . Think about what you'd like to do with the boat. If you'd love to have leisurely afternoons with family and friends at a nearby lake, a pontoon boat could be an excellent choice. Or if you have your heart set on shark fishing, a larger and more expensive center console offshore fishing boat will be needed. 
• Consider new or used . Boats can depreciate a great deal, so a used boat may be a better choice than a new boat. However, new boats have the latest features and are often backed by warranties, so some people will feel greater peace of mind buying new. What makes the most sense depends on your budget and your comfort level with the different purchase prices. 
• Save for a down payment . If you are planning on taking out a secured boat loan, you'll likely need a down payment. Down payment requirements vary, but they can range from about 10% to 30% of the boat's purchase price. However, if you're buying a less expensive boat—such as one that costs less than $100,000—you may be eligible for an unsecured loan with no down payment requirement. 
• Shop around . Request quotes from several lenders to find the best rates and repayment options for your budget. Many lenders allow you to view your loan options with a soft credit check , which doesn't affect your credit. 
• Complete a loan application . To apply for a loan, you’ll need to provide information about yourself and the boat you want to buy, including your name, address, and Social Security number.

Depending on the type of loan you're applying for and the lender, you could receive a decision within minutes. With unsecured loans, the funds are disbursed directly to your bank account, and you can purchase a boat from a dealership or private seller. With secured loans, the lender typically pays the dealership on your behalf. 

Investopedia collected and analyzed hundreds of key data points from over 70 companies across three months to identify the most important factors for readers choosing a fair loan lending company. We used this data to review each company for fees, repayment terms, income requirements, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their needs. Investopedia launched in 1999, and has been helping readers find the best loans for those with fair credit since 2020.

Frequently Asked Questions

How much does a boat cost.

That depends on the type of boat you want to buy. Factors that affect the price include the type and size of the vessel, the brand name, and the features. On average, a new fishing boat can start around $18,000 while the starting price for a pontoon boat can be in the range of $15,000. Larger boats can start at about $100,000. Keep in mind that these costs are for new boats, so buying a used one can save you some money. And don't forget to factor in other costs, like storage fees and maintenance—all of which come after you make your purchase.

What Credit Score Do You Need for a Boat Loan?

Some lenders will work with borrowers with poor to fair credit . But, you'll have more options and qualify for better rates if your credit score is in the good to excellent range, meaning a FICO score between 670 and 850.

What Is a Good Interest Rate for a Boat Loan?

The best boat loans have rates under 10%. But depending on the type of loan, your credit, and the amount you need to borrow, boat loans with double-digit rates are common.

What Are the Typical Terms for a Boat Loan?

Typical boat loan terms vary by loan type. With unsecured personal loans, you typically have between two and seven years to repay the loan. Secured loans usually have much longer term options; you could qualify for a loan with a term as long as 20 years, giving you a more manageable monthly payment.

What Type of Loan Should I Get for a Boat?

Boat loans can be secured or unsecured. When deciding which type of loan to use for your next boat purchase, consider the following: 

• Speed : Unsecured loans are typically faster than secured loans. They're issued solely based on your creditworthiness, and you can get approved and receive the loan funds as soon as the same day you apply. Secured loans take longer because the lender needs to take the boat's condition and value into consideration, which requires additional review. 
• Limitations : If you want to purchase an older boat, you may need to use an unsecured loan. Unsecured loans have few restrictions on how they're used, while secured loan lenders often have age and size restrictions. 
• Loan maximums : For higher-priced boats, you'll likely need a secured loan. Unsecured loans are generally for $100,000 or less, while you can borrow up to $4 million with a secured loan. 
• Rates : Because secured loans are backed by the boat as collateral, they tend to have lower rates than unsecured loans. If you're looking for the lowest rate, taking the time to borrow a secured loan may be a good idea. 

Can You Refinance a Boat Loan?

If you have an existing boat loan, several lenders offer refinancing options . You could refinance your loan to get a lower rate or adjust your loan term to lower your payments, and you could save money over the life of your loan. 

Can I Use a Boat Loan to Buy a Used Boat?

Some lenders do allow you to use a boat loan to buy a used boat. For instance, you can purchase a new or used boat from a dealership or a private seller if you borrow with Southeast Financial.

Companies We Reviewed

We researched and reviewed more than 70 institutions to find the best six lenders you see above on this list. While we write individual reviews for most companies we research, we do not always write reviews for companies we would not recommend. These are the companies we researched, along with links to individual company reviews, to help you learn more before making a decision: 

Achieve , Affinity Federal Credit Union , Alliant Credit Union , American Express , Avant , Axos Bank , Bankers Healthcare Group, Best Egg , Bethpage Federal Credit Union , Blue Federal Credit Union , Boatloan.com, Boeing Employees' Credit Union , CapexMD, Citibank , Connexus Credit Union , Discover , Dividend Finance, ENT Credit Union , Fig Loans, First Tech Federal Credit Union , Future Family, GoodLeap, Greenstate Credit Union , Happy Money , Hiway Credit Union , Lake Michigan Credit Union , Laurel Road , LendingClub , LendingPoint , LendingUSA , Liberty Federal Credit Union , LightStream , Lyon Financial, Mariner, Money Key, Mountain America Credit Union , NASA Federal Credit Union , Navy Federal Credit Union , Netcredit , Old National Bank , OneMain Financial , OppLoans , Patelco Credit Union , PenFed , Personify Financial , PNC Bank , Prosper , Reach Financial , Regions , Reprise , Rocket Loans , Santander , Service Federal Credit Union , SoFi , Southeast Financial, Summit Credit Union , SunPower, TD Bank , Teachers Federal Credit Union , Trident Funding, Truist , U.S. Bank , Universal Credit , Upgrade , Upstart , USAA , Vantage Recreational Finance, Wells Fargo .

How We Pick the Best Boat Loans

To evaluate and rank personal loan providers we collected hundreds of data points across 70 lenders, including traditional banks, credit unions, fintechs, and special interest finance companies. We researched and evaluated APRs, loan amounts and terms, fees, customer experience, and much more.

To rank the lenders in our database and to generate star ratings, we weighted the data we collected, based in part on what consumers told us were the most important features of a personal loan and lender in a survey we conducted . We grouped those factors into four broad areas:

• Loan costs (advertised APR, fees, and six other factors): 29.25%
• Loan terms (loan amount, repayment term, and three other factors): 22.25%
• Borrowing requirements (credit score, membership requirement, and six other factors): 28.5%
• Additional features (online application, pre-qualification, and eight other factors): 20%

Learn more about how we evaluated personal loans in our complete methodology .

Learn more about personal loans:

• What is a personal loan?
• How do personal loans work?
• When are personal loans a good idea?
• How to get a personal loan
• How to apply for a personal loan
• How to use a personal loan
• Where to get a personal loan
• Personal loans vs credit cards
• Alternatives to personal loans
• Personal loan calculator
• Personal loans methodology  

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SoFi. “ Personal Loans .”

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Southeast Financial. " Boat Loans and Financing ."

Southeast Financial. “ Loan FAQs .”

Regions. “ Key Facts .”

Regions. " Secured Installment Loan for Recreational Vehicles ."

United States Securities and Exchange Commission. " 2022 Annual Report-10-K ."

Upgrade. “ Upgrade Inc. ”

Upgrade. “ Personal Loans .”

Trident Funding. “ Boat Loans .”

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Patelco Credit Union. “ Personal Loans .”

NMMA. " Benefits of NMMA Certification ."

NBOA. " BOAT COST EXPLAINED: WHY DIFFERENT TYPES OF BOATS HAVE SUBSTANTIAL PRICE RANGES ."

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How Long Can You Finance a Boat?

Boat financing is not terribly different from financing a car, a home, or other major purchases, but people often wonder just how long you can finance a boat for. There are different variables (like the size of your down payment and the interest rate), that will affect just how much your monthly payment boils down to, in addition to the length of the term.

So, these other factors also need to be considered when you sit down with a pencil and paper to determine how long you should get the loan for.

Boat Loan Terms

Historically, lenders made boat loans for shorter periods of time than they might for other major purchases. This is because truth be told, 50 or more years ago boats simply weren’t built as well as they are today. After 10 years or more many boats were in need of an overhaul, so lenders wanted to make sure their collateral wasn’t devaluing faster than they were getting paid. But as boats and the engines that propel them have become better and begun lasting far longer, they’ve begun to retain more and more resale value. Net result? Lenders have become willing to finance them over much longer periods of time.

So yes, you may have heard that boat loans are short in duration. It’s true that once upon a time getting a boat loan for 10 years was a stretch and loan periods longer than that were rare—but those times are long past.

Today, many lenders will finance a boat for 20 years. Obviously, that can bring down your monthly payments quite a bit; you can use our Boat Loan Calculator to figure out exactly how the monthly payments would differ between a 10-year term and a 20-year boat loan.

Use our Boat Loan Calculator

Factors that Effect Boat Financing Terms

You need to be aware, however, that how long you finance a boat can also impact those other variables we mentioned earlier. If you double the term of a loan, for example, a lender is likely to want a slightly higher interest rate, or perhaps a down payment that’s a higher percentage of the boat’s value. There are also some other factors a lender may take into consideration when determining just how long a loan term they’ll be willing to consider. These commonly include:

• The size of the loan
• The type of boat
• The age of the boat, if it’s used

Boat Loan Size

Loan size has an important impact on how long a lender will be willing to stretch the loan. As a general rule of thumb, the larger the loan is the longer it can be financed. Many lenders will have minimum loan amounts for different specific term periods.

Type of Boat

Most modern powerboats can be lumped together, but there are some outliers that financers will treat differently.

• Boats with wood hulls, for example, or high performance boats , may be treated differently.
• Some lenders differentiate between sailboats and powerboats in general, and some consider multi-hull boats or pontoon boats differently.
• One big issue that arises from time to time is with liveaboards . Because of the laws regarding residences, home ownership, and home ownership escrow accounts, loans for liveaboards are treated very differently than common boat loans and some lenders won’t make them at all.

Explore All Boat Types

Used Boat Age

The age of a boat has a big impact on the term length that’s acceptable to a lender. In almost all cases the newer a boat is, the longer a boat loan you can get. Many lenders put a cap on how old a boat can be to even consider when making a loan, and some others deal purely with new boats.

When buying used you also have to expect that other loan requirements may also change; some lenders have higher minimum loan amounts or different finance rates for boats built prior to a specific model year.

Ready to Secure Boat Financing?

The bottom line? If you’re buying a new boat—which we’d certainly encourage as opposed to buying used , since new boat-buyers report a much higher level of satisfaction—and your credit score and debt-to-income ratio are up to snuff, you should have no problem financing a boat that meets a lender’s minimum loan amounts for up to 20 years.

Use our Boat Buyer’s Guide to help work through all the other factors that should be taken into account when making a purchase of this nature, and you’ll have years of fun on the water to look forward to.

Read Next: How to Get a Boat Loan

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Yacht Dreaming

Understanding Boat Financing Terms

What is boat financing?

Boat financing refers to the process of obtaining funds to purchase a boat. It is a common practice for many boat enthusiasts who may not have enough money to buy a boat outright. Boat financing is similar to other types of financing, such as car financing or home financing.

Types of Boat Financing

There are several types of boat financing available, and it is important to understand the differences between them before choosing the right one for you.

Here are some of the most common types of boat financing:

Secured loans: This type of financing is often preferred by lenders as it is secured by the boat itself, meaning that if the borrower defaults on payments, the lender can seize the boat. This type of financing often has lower interest rates and longer repayment terms.

Unsecured loans: This type of financing is not secured by any collateral, meaning that if the borrower defaults on payments, there is no asset for the lender to seize. Due to the increased risk to the lender, unsecured loans often have higher interest rates and shorter repayment terms.

Personal loans: Personal loans can be used for a variety of purposes, including boat financing. These loans are often unsecured and can have higher interest rates than other types of financing.

Leasing: Boat leasing allows the borrower to use a boat for a specific period of time, usually a few years, and then return it to the lender. This type of financing can be beneficial for those who wish to use a boat for a short period of time without the commitment of ownership.

When choosing a boat financing option, it is important to understand the terms associated with it. Here are some of the most common boat financing terms:

Principal: The amount of money borrowed to purchase the boat.

Interest rate: The percentage of the principal that the borrower must pay in interest.

Repayment term: The length of time over which the borrower must make payments on the loan.

Down payment: The amount of money paid upfront by the borrower at the time of purchase.

Collateral: Any asset used to secure a loan, such as the boat itself.

Credit score: A numerical representation of a borrower’s creditworthiness, based on their credit history and other financial factors.

Factors That Affect Boat Financing Terms

Several factors can affect the terms of boat financing, including:

Credit score: Borrowers with a higher credit score may qualify for lower interest rates and better terms.

Down payment: A larger down payment may result in better financing terms.

Age and condition of the boat: Lenders may offer better terms for newer boats or those in good condition.

Loan amount: Larger loans may come with higher interest rates and shorter repayment terms.

Advantages and Disadvantages of Boat Financing

While boat financing can be a great way to purchase a boat, it is important to weigh the advantages and disadvantages before making a decision.

Advantages of Boat Financing

Access to a higher quality or more expensive boat than would be possible to purchase outright.

The ability to spread out the cost of the boat over a longer period of time, making it more affordable.

Lower upfront costs, as a down payment may be less than the full cost of the boat.

Disadvantages of Boat Financing

Interest rates and fees associated with boat financing can significantly increase the total cost of the boat.

Longer loan terms may result in paying more in interest over time.

Defaulting on payments can result in the lender seizing the boat as collateral.

Understanding boat financing terms is essential for anyone looking to purchase a boat. By understanding the different types of financing available, the associated terms, and the advantages and disadvantages of each option, borrowers can make informed decisions about the best way to finance their boat purchase. When considering boat financing, it is important to choose a reputable lender and carefully read and understand all loan documents before signing.

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• Boat Loan Calculator

Ready to buy a boat? Use our easy boat loan calculator to check your monthly payments or calculate your total loan amount.

Adjust the loan term, down payment amount and interest rate to see results based on the numbers you provide - and how any changes to those numbers may affect your payment.

Ready for the next step?

Ready to buy a boat? Check out these boats for sale on Boat Trader!

Already started a loan application with us?  Log in to continue.

How Trident Funding Boat Loans Work

It’s as easy as 1-2-3, 1. calculate your payment.

Whether you’re an avid boater or new to the boating world, this loved pastime is available to everyone. If you’re buying a new or used boat, you can use Trident’s boat loan calculator to understand your financing options. Simply enter your desired monthly payment to get the loan amount you can afford or provide your total boat loan amount and loan terms to return your estimated monthly payments. 

2. Apply for a Loan

Now that you have an idea of your estimated boat loan monthly payment or total loan amount, you can submit your loan application. It only takes a few minutes! We’ll ask you to tell us about the type of boat you’re looking for and a few details about your financial situation so we can match you to the marine lender that’s right for you.

3. Get on the Water!

Once you submit your boat loan application, our dedicated team of loan officers gets to work! We usually have a response from a marine lender in 24-48 hours. If we need additional documentation, we’ll reach out. All you have to do is dream about getting on the water. We’ll help you find the  interest rate  and boat loan lender that fit your budget and lifestyle.

Already started a loan application with us?  Log in  to continue.

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What is a boat loan calculator.

A boat loan calculator is an online tool that helps potential boat buyers estimate the cost of financing a boat purchase. This tool takes into account several factors such as the boat’s price, down payment, interest rate, and loan term, which are used to calculate monthly payments and the total cost of the loan. You can adjust the loan term, down payment amount, sales tax, and  interest rate to see boat loan payments based on the numbers you provide – and how any changes to those numbers may affect your payment.

Using a boat loan calculator helps potential borrowers determine how much they can afford to borrow, how much their monthly payments will be, and how much interest they will pay over the life of the loan. This information can help borrowers make an informed decision about their boat purchase and ensure they stay within their budget.

How To Calculate A Boat Loan Payment

• Determine your loan amount: This is the total amount of money you will be borrowing for the boat purchase. It is typically the price of the boat minus any down payment or trade-in value.
• Determine your loan term: This is the length of time over which the loan will be repaid, usually in months. For example, a 20-year loan would be shown as 240 months. 
• Check your interest rate: This is the annual percentage rate (APR) you will be charged on the loan. Rates are impacted by your credit score, the size of the loan, and the length of the loan term. 
• Use a boat loan calculator: There are many boat payment calculators available online that can help you estimate your monthly loan payments. Simply enter your loan amount, loan term, and interest rate, and the calculator will provide an estimate of your monthly payments. Alternatively, you can enter your desired monthly payment, loan term, and interest rate and see a total loan amount so you can start boat shopping.

It’s important to note that the monthly payment estimate provided by the calculator is based on a fixed interest rate and assumes that you will make all payments on time. Actual monthly payments may vary depending on your credit score, the lender you choose, and other factors.

Also, keep in mind that the boat loan payment may not be the only expense associated with boat ownership . You’ll need to consider additional costs such as insurance, maintenance, docking fees, and fuel.

Frequently Asked Questions

How long is a typical boat loan for.

Typically, the maximum term for a  boat loan  is 20 years, however the maximum or standard term for a boat loan can be affected by the age of the boat and the size of the loan request. The next most common terms are 15 and 10 years.

How much yacht can I afford?

Check out a  yacht loan calculator , to see how much yacht you can afford. Affordability will be based on things like your income, credit score, debt-to-income ratio, purchase price of the boat, loan term, and interest rate. When you see the estimated yacht loan monthly payment, remember that it doesn’t include insurance, marina fees, docking or storage fees, maintenance, repairs, fuel, license, or crew costs. So, make sure there is room in your budget to allow for these extra expenses.

Is it smart to finance a boat for 15 years?

Financing a boat over a 15 or 20 year term is very common. Banks tend to offer longer terms on boat loans because the depreciation schedule of a boat is typically longer than other assets like automobiles.

Can I get a 20-year loan on a used boat?

Yes, you can get a 20-year term on a used boat. However, the boat usually needs to be less than 15 years old, and most lenders will also have a minimum loan requirement in order to qualify for a 20-year boat loan term.

Can I get a boat loan with a 600 credit score?

You can get a boat loan with a 600 credit score, but most lenders prefer credit scores of 700 or higher. With a lower credit score, you should expect a larger down payment or a higher boat loan interest rate. Use our boat loan calculator to estimate your monthly interest rate and then  apply for your boat loan  today.

Can I purchase a boat with bad credit?

You can purchase a boat with bad credit, but you probably won’t qualify for boat loans if you have bad credit. If your credit score is below 600, you may need to pay cash for the boat, work out an owner financing arrangement with the seller, or put down a large down payment. Other options may include taking out a personal loan, getting a loan from your credit union, or using boat dealer financing. Some boat loans may allow a qualified cosigner but the cosigner would have to meet the lender’s criteria and agree to be responsible for the loan.

Keep in mind that some lenders won’t work with you at all if your credit score is below 600, so it may be advantageous to raise your credit score first and then apply for a boat loan. The best interest rates and terms are reserved for the most credit-worthy borrowers. So, having a higher credit score will save you money over the term of the loan.

Can a high credit score save me money when financing a boat?

Having a high credit score to finance a boat will save you money in a few different ways. Firstly, you will get access to the best rates, terms, discounts, and the lowest-fee boat loans. You may also be able to choose your loan term, and your down payment requirements may be lower. 

For example, if you can afford the higher monthly payment of a 10-year loan term, instead of a 20-year loan term, you can potentially save thousands of dollars in interest because you will be paying off the loan over a shorter period of time. 

However, the main way that you save money on a boat loan is with a lower interest rate. Assuming that you have a high credit score, and get a 6.25% rate on a $200,000 boat loan, with a term of 20 years, you will have paid a total of $350,845.54 for the boat over the 20-year term. This only includes principal and interest and is only applicable if you have a fixed rate loan. 

Now, let’s assume your credit score isn’t great, and you get a 9.0% interest rate on the same $200,000 loan. You will have paid a total of $431,868.46. That means that a borrower with a higher credit score will have spent $81,022.92 less than the borrower with the lower credit score. That’s a huge amount of money that could be invested or even used to buy another boat!  

What are the best boat loan terms?

Boat loan terms vary in length, anywhere from seven to 20 years, and occasionally 25 years. There isn’t really a ‘best’ when it comes to boat loan terms. It’s all relative to your financial situation, the year of the boat, and the loan amount. If you have the extra money budgeted for larger monthly payments, and don’t want to pay additional interest, then a shorter-term boat loan may be better for you. 

Conversely, if you’re buying an expensive boat, and want the cheapest monthly payments available, then a 20-year boat loan term may be more suitable for you. When you  apply with Trident Funding , they will go over different boat loan terms,  interest rates , and monthly payment options with you.

What is the minimum credit score for a boat loan?

There is no definitive minimum credit score required, but there are some banks that will consider applicants with scores in the 600 or 640 range. You will typically need a credit score of at least 600 to get approved for a  boat loan . The higher your credit score, the lower your interest rate will be, which will save you money over the term of the loan. Additional credit limitations and requirements will typically be required for scores under 700. Use our boat loan calculator above to determine your estimated monthly payment based on your FICO credit score.

Some tips to raise your credit score include

• Make on-time payments to your creditors
• Ask for credit limit increases on your credit cards but don’t use the additional credit
• Pay down your credit card balances so they’re 25% or lower
• Regularly check your credit report and dispute any errors

How much boat can I afford?

The amount of boat that you can afford depends on a number of factors. It will depend on your income, your credit score, and your liabilities. You may qualify for a million dollar boat solely based on your income, but when you factor in your monthly expenses, that number may change drastically.

The lender will take a look at your overall financial profile including your debt-to-income ratio to ensure that you can afford to purchase the boat and keep up with the monthly payments. You can check out a  boat loan calculator  to get an idea of how much boat you can afford. The calculator is a great place to start when you’re boat shopping, but don’t forget about additional expenses such as boat insurance, marina fees, and ongoing maintenance costs.

Can you get a 30 year mortgage on a yacht?

Yacht loan terms typically go up to 20 years, but you may find one for 25 years if you and the boat meet certain qualifications. A  yacht loan  is different from a mortgage, it’s more comparable to an auto loan, just with a longer loan term.

The yacht serves as the collateral and you typically use your own funds for a downpayment and finance the remainder of the purchase price. You will pay monthly payments throughout the life of the loan. Like auto loans, yacht loans require insurance and each lender will have their own qualifications that need to be met in order to be approved for the loan.

What credit score do I need to qualify for a boat loan?

A good  credit score  to finance a boat is typically 700 or higher. Most marine lenders only work with creditworthy borrowers who have what is considered great or excellent credit. Sure, you may qualify for a loan with a lower credit score, but the maximum loan amount may be lower, the monthly payment may be higher, your loan application may take longer for credit approval, and you may be required to put down a larger down payment than a borrower who has a higher credit score. 

If you’re not sure what your credit score is, or you want to know if you will get approved for a boat loan or not,  apply with Trident Funding  online in just a few minutes. The initial application only requires a soft-pull on your credit score, and you will quickly find out if a boat loan is in your near future, or if you need to raise your credit score first.

What are typical terms for boat financing?

The length of the loan is referred to as a  loan term . Loan terms vary depending on the loan product, the type of boat, the age of the boat, the loan amount, and your financial standing. However, most boat loans range from 10- to 20-year terms. A 20-year term is usually the maximum term for a boat loan, however, sometimes a lender will consider a 25-year loan term. The next most common boat loan terms are 15 and 10 years. Typically loan amounts over $50,000 can go to 15 to 20 years and loan amounts under $50,000 can go to 12 to 15 years.

What is the typical down payment on a boat loan?

The amount of the down payment on a boat loan varies. It’s usually anywhere from 10% to more than 30%. It depends on the borrower’s credit score, income, and overall financial profile. It also depends on the loan amount and the loan term. Generally, borrowers with lower credit scores will be required to put down a larger down payment. This is to mitigate some of the lender’s risk and it shows ‘more skin in the game’ because the borrower has more to lose if they default on the loan. 

If you like to know the numbers and want specifics, here goes. The average cost of a new boat is around $70,000. If you have excellent credit, expect to put down at least $7,000. If your credit is less than excellent, you may need to put down anywhere from $14,000 to more than $21,000. This is just the amount needed for the downpayment and doesn’t include closing costs or insurance etc.

What is the average boat payment?

Every borrower is different and their credit score and income will affect the boat payment. The  interest rate , the boat term, and the purchase price of the boat will also affect the amount of the monthly payment. If you want to roughly estimate what your boat payment will be, calculate 1 to 1.5% of the value of the boat. For example, if you  buy a boat  worth $100,000, expect to pay between $1,000 and $1,500 per month. Keep in mind, this is just a rough estimate, and you can get a better idea of your monthly payment, by using a  boat loan calculator .

3 Actual rate, loan amount and term can vary depending on the lender, FICO score, credit history, lender assets/liquidity requirements, down payment, debit and payment to income ratios, collateral type, age of collateral, loan to value, vehicle registration (LLC), loan type (Purchase versus Refinance), state of residency and other criteria. Loan is for recreational pleasure use only. Rates and terms are subject to change without notice based on market conditions and borrower eligibility. Other rates and loan terms are available. † Max loan term may vary. Rates may not apply to customers residing in states or Puerto Rico.

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• Yacht Financing

Assets America ® offers luxury yacht financing for yachts, super yachts and mega yachts starting at $10 million and beyond! Yachts are watercraft used for sports, commercial use (chartering) or pleasure (including fishing) with a minimum length of 50 feet.  Super-yachts are large, expensive, professionally-crewed yachts, informally sized at 79 feet or greater, although the dividing line is somewhat subjective. Finally, mega-yachts are the biggest and most expensive yachts, starting from 164 feet and beyond.

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Yacht Valuation

Yachts are configured as sailing or power vessels, although many sailing yachts have motors as a backup. While yachts can be quite large, however, they are dwarfed by commercial maritime vessels like oil tankers, ocean cruise liners, and cargo ships. Yachts can yield income through chartering, which can figure into the process of obtaining yacht loans. Super-yacht and mega-yacht designs also reflect the personal tastes of their owners. These specializations affect the yacht’s value for financing purposes.

Many factors figure into the evaluation of a luxury yacht, for example:

• Purpose of the vessel
• Number of engines
• Sleeping accommodations
• Crew size (if any)
• Chartering income (if applicable)
• Suitability for different sea conditions
• Fuel consumption
• New versus used
• Legal jurisdiction of the lender, the borrower, and the yacht itself

Take note that international considerations can complicate the process. In other words, financing must account for different laws and cross-border tax implications.

Yacht Financing from Assets America ®

If you want to purchase a yacht, or build your own newbuild, or lease a yacht, check out our yacht finance packages. We can arrange yacht loans that will meet your requirements, even if you are somewhat credit challenged. Our yacht loans start at $10 million. Don’t postpone purchasing the yacht you deserve. Rather, call our offices today at (206) 622-3000 , or simply fill out the below form for a prompt response!

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Yacht Survey

For yacht financing and insurance purposes, a yacht, superyacht or megayacht must undergo a survey, a procedure similar to a home inspection. The three types of yacht surveys are:

• Insurance survey: This type of survey is for renewal of insurance policies, not for acquisition. It is a light inspection that tries to identify outstanding issues.
• In-shore and coastal survey: This is the most common survey and is a good choice for many yacht purchases. It includes a full equipment listing, a confirmation of the hull number (much like a car’s VIN), complete system testing, and an out-of-water check of running gear, hull, and bottom paint.
• Offshore survey: This is the most time-consuming and comprehensive survey, appropriate for ocean-going yachts. It includes the in-shore and coastal survey, but also ultrasonic tests, hull moisture tests, heat-sensing scans, engine manifold tests, and more.

Yacht-Building Contracts

The individual nature of luxury yachts means that yacht-building contracts are not standardized the way that oil tanker contracts are standardized. The yacht building yard will enumerate all the luxury yacht buyer’s individual requirements in the contract, which will probably go through several drafts before finalization.

The contract structure reflects the obligations of the builder and the buyer. It will also include warranties, tax provisions, and often, confidentiality clauses, as the owner of a mega yacht often wants to keep a low profile. Ideally, the shipyard delivers to the buyer the yacht exactly as specified, and the buyer receives a clean title upon payment of the purchase price.

Yacht Registration

Yachts must be registered in a country, but not necessarily in the country of the seller or the buyer. Registration is fairly easy as long as the yacht meets certain criteria, such as technical standards and age. This holds especially true in “open registry” countries like Liberia, Panama, Cyprus, and the Bahamas. “Offshore registry” countries are usually colonies or dependencies. For example, there are the Netherland Antilles, Cayman Islands and the Isle of Mann. If the owner is a U.S. citizen, yachts weighing 5 tons or more can be registered at the National Vessel Documentation Center of the U.S. Coast Guard. Coast Guard documentation also offers access to a preferred mortgage that gives the lender certain benefits. However, most U.S. yacht lenders require that financed yachts are documented.

Financing a Yacht

When purchasing an existing yacht, borrowers usually take out yacht mortgages on vessels. However, arrangements differ between yacht building contracts and chartered yachts. Other influencing factors include the current and proposed registration jurisdictions, the tax treatment of the yacht, and the owner’s tax status. In conclusion, yacht financing protects the lender from the borrower’s other creditor claims.

Yacht Loans

Private commercial lenders like Assets America ® can arrange yacht financing, as well as banks, credit unions, boat brokers and yacht manufacturers. Typically, the loan agreement takes on a basic asset-financing structure, collateralized by the fully amortizing yacht mortgage and a lien on the yacht, as well as insurances signed over to the lender. In addition, the loan agreement may give the lender a lien on any revenues generated by chartering the yacht. Finally, the lender will most probably require a personal guarantee and/or debenture from the borrower. This gives the lender a lien on the borrower’s other assets as well.

Yacht-Building Loans

For yacht-building contracts, the loan agreement will provide for cash advances to pay for pre-delivery construction milestones. Payments start with a pre-build deposit by the buyer. Installment payments follow as construction progresses through succeeding stages, evidenced by Stage Certificates. Pre-delivery requirements also include assignment of the yacht-building contract. In the case of default, the contract gives the lender the right to have the builder finish construction. Then the lender takes possession of the vessel and sells it. Accordingly, the yacht financing lender releases funds to the yacht builder upon receipt of each Stage Certificate. These must include the counter-signature of an independent surveyor. The yacht-building contract usually contains clauses that specify what happens if default occurs either by the builder or the buyer.

All loan agreements contain language relevant to warranties, insurances, and registration. The lender might also require covenants that preclude certain uses of the yacht, such as chartering. Finally, the borrower’s surveyor will have inspection rights to protect the borrower’s interests.

Yacht Leases

Some people choose to lease their yachts rather than purchase them. In this case, the lessor gains title to the yacht and leases the yacht back to the lessee for an agreed term. These leases are usually “demise charters” that provide the lessee exclusive use of the yacht. In other words, the lessee is the operational “owner,” while the lessor maintains the title.

Glossary of Marine Lending Terms

Yacht financing – faqs, how is the current market for yachts and superyachts.

Across the world, the boating market—whether monohull sailboats, catamarans, yachts, or superyachts—is a buyer’s market and should remain that way for the foreseeable future. Because fiberglass and other light, super-durable hybrid materials last so long, the market has become increasingly flooded. Often multimillion-dollar yachts are selling for a fraction of what they were just 7-10 years ago.

Is there a best time to purchase a yacht?

The simple answer is yes, at the beginning of the off-season, although that varies around the world and especially between the northern and southern hemispheres. In Florida for instance, the best time to buy a yacht is mid to late August.

What are the costs involved with maintaining a yacht?

In addition to purchasing the yacht, owners typically pay for mooring and storage, insurance, operational costs, crew, maintenance, and winterization. These costs can be rather substantial. Before purchasing a yacht, one needs to make sure they are financially secure.

Can my yacht qualify for tax advantages?

Yes, for example, if a yacht has a berth, head, and galley, then it can qualify as a second home.

What is the least and most amount of financing I can receive?

While our loans start at a bare minimum of $10 million, there is no upper limit to the amount of financing available to you via Assets America®.

What kind of down payment should I expect to make?

While the standard down payment is 20% to 30%, really strong borrowers may be able to make a smaller down payment depending on the quality of their credit, their financial statement, and their cash position.

Online Resources for Yacht Financing and More :

• First, for tips on buying and financing your first luxury yacht , check out these articles from Boat International , Cruising World , and Marina Reservation .
• Second, Boat International also provides Yacht Market Reports and Superyacht Market Reports .
• Moreover, if you’re interested in environmentally friendly yachting, consider checking out Blue Flag International .
• In addition, you may also enjoy this Guide To Yacht Financing from the law firm Field Fisher Waterhouse, although if you’re serious about financing a yacht or superyacht, the best way forward is to speak with a seasoned professional.
• Finally, The New York Times has an excellent article The Beginner’s Guide to Chartering a Yacht with Crew .

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Ronny was a pleasure to work with and is extremely knowledgeable. His hard work was never ending until the job was done. They handled a complex lease and guided us through entire process, including the paperwork. Not to mention a below market lease rate and more than all the features we needed in a site. We later used Assets America for a unique equipment financing deal where once again Ronny and team exceeded our expectations and our timeline. Thank you to Assets America for your highly professional service!

Great experience with Assets America. Fast turn around. Had a lender in place in 30 minutes looking to do the deal. Totally amazing. Highly recommend them to anyone looking for financing. Ronny is fantastic. Give them a call if the deal makes sense they can get it funded. Referring all our clients.

Assets America guided us every step of the way in finding and leasing our large industrial building with attached offices. They handled all of the complex lease negotiations and contractual paperwork. Ultimately, we received exactly the space we needed along with a lower than market per square foot pricing, lease length and end of term options we requested. In addition to the real estate lease, Assets America utilized their decades-long financial expertise to negotiate fantastic rates and terms on our large and very unique multimillion dollar equipment purchase/lease. We were thankful for how promptly and consistently they kept us informed and up to date on each step of our journey. They were always available to answer each and every one of our questions. Overall, they provided my team with a fantastic and highly professional service!

Assets America was responsible for arranging financing for two of my multi million dollar commercial projects. At the time of financing, it was extremely difficult to obtain bank financing for commercial real estate. Not only was Assets America successful, they were able to obtain an interest rate lower than going rates. The company is very capable, I would recommend Assets America to any company requiring commercial financing.

Assets America was incredibly helpful and professional in assisting us in purchasing our property. It was great to have such knowledgeable and super-experienced, licensed pros in our corner, pros upon which we could fully rely. They helped and successfully guided us to beat out 9 other competing offers! They were excellent at communicating with us at all times and they were extremely responsive. Having them on our team meant that we could always receive truthful, timely and accurate answers to our questions. We would most definitely utilize their services again and again for all of our real estate needs.

Assets America is a great company to work with. No hassles. Recommend them to everyone. Professional, fast response time and definitely gets the job done.

Ronny at Assets America has been invaluable to us and definitely is tops in his field. Great experience. Would refer them to all our business associates.

We were very pleased with Assets America’s expertise and prompt response to our inquiry. They were very straight forward with us and helped a great deal. We referred them to all our business associates.

I’ve worked with this company for decades. They are reputable, knowledgeable, and ethical with proven results. I highly recommend them to anyone needing commercial financing.

Ronny was incredibly adept and responsive – top-notch professional who arranged impressive term sheets.

Assets America helped us survive a very difficult time and we most definitely give them 5 stars!

Ronny was very friendly and though we were unable to make something happen at the moment he gave me some direction to go.

My business partner and I were looking to purchase a retail shopping center in southern California.  We sought out the services of Ronny, CFO of Assets America.  Ronny found us several commercial properties which met our desired needs.  We chose the property we liked best, and Ronny went to work. He negotiated very aggressively on our behalf. We came to terms with the Seller, entered into a purchase agreement and opened escrow.  Additionally, we needed 80 percent financing on our multimillion-dollar purchase.  Assets America also handled the commercial loan for us.  They were our One-Stop-Shop. They obtained fantastic, low, fixed rate insurance money for us.  So, Assets America handled both the sale and the loan for us and successfully closed our escrow within the time frame stated in the purchase agreement.  Ronny did and performed exactly as he said he would. Ronny and his company are true professionals.  In this day and age, it’s especially rare and wonderful to work with a person who actually does what he says he will do.  We recommend them to anyone needing any type of commercial real estate transaction and we further highly recommend them for any type of commercial financing.  They were diligent and forthright on both accounts and brought our deal to a successful closing.

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Boat Loan Calculator

This boat loan calculator will help you determine the monthly payments on your boat loan. Simply enter the loan amount, term and interest rate in the fields below and click calculate. This calculator will show you both the principal and interest payments you would make on a fixed-rate boat loan.

Oct 31, 2023

How does our boat loan calculator work?

The Bankrate boat loan calculator helps borrowers calculate monthly payments for fixed-rate boat loans . Boat loans are installment loans, meaning that you make fixed monthly payments on the principal balance – plus interest and fees – until the loan is paid off. Since boat loans have fixed rates, the interest rate you pay will never change over the life of the loan and the payments stay the same each month. Our calculator shows you the estimated monthly payment for your boat loan, based on the loan amount, term length and interest rate of the loan.

How much does a boat cost?

The cost of buying a boat varies widely depending on the type of boat you buy and whether you buy it new or used. The average cost of a new boat is typically between $40,000 to $75,000 , but you could end up paying far less or far more than that depending on what you’re looking for. If you’re in the market for an older model, for example, you could pay as little as $9,500 depending on the make and model of the boat. 

However, the cost of the boat is just the first expense. When calculating the entire cost of the boat, you'll also need to consider regular maintenance costs, insurance and potential storage fees if you plan to store your boat at a marina. If you plan to take out a boat loan to finance the purchase, you also need to factor in the interest rate and fees of the loan.

What is the average boat loan term?

Boat loans are unsecured personal installment loans, so the terms for these loans tend to be similar to personal loans overall. The term length of your loan determines how much of the principal balance you will pay per month as well as how long it will take you to pay off the loan. Different lenders have varying options, but most offer at least two to three term options anywhere between 1 year to 7 years, with the lengths you qualify for also depending on how much you’re borrowing. However, smaller loans are less likely to be eligible for longer repayment periods, which will result in larger monthly payments.

What is the average boat loan interest rate?

The best personal loan interest rates range from 3 percent to 36 percent, with the average personal loan rate currently at 10.96 percent .

The average personal loan rate steadily increased throughout 2022 due to rising federal rates. It is likely that these rates will continue to rise throughout 2023. However, the actual rate you qualify for depends on the lender, your credit score and financial history, as well as the size of the loan.

Secured vs. unsecured boat loans

Secured boat loans, similar to other secured personal loans , use the boat itself as collateral. This means that if the loan goes unpaid, the lender may be eligible to repossess the boat to satisfy the delinquent payments. Despite this risk, borrowers with less-than-ideal credit can consider borrowing a secured loan, as they may have an easier time qualifying than with an unsecured loan . Plus, secured loans often come with the potential for lower interest rates and longer repayment terms, since the lender is incurring less risk by securing the boat as collateral. 

Unsecured boat loans do not require the financed boat as collateral, and thus do not risk the craft in the event of non-payment. However, these loans tend to be more difficult to qualify for– and interest rates tend to be higher. Additionally, nonpayment does not necessarily go unpunished: the lender could take the borrower to court if they violate the terms of repayment and default on the loan balance .

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What is the average boat payment?

Every borrower is different and their credit score and income will affect the boat payment. The interest rate, the boat term, and the purchase price of the boat will also affect the amount of the monthly payment. If you want to roughly estimate what your boat payment will be, calculate 1 to 1.5% of the value of the boat. For example, if you buy a boat worth $100,000, expect to pay between $1,000 and $1,500 per month. Keep in mind, this is just a rough estimate, and you can get a better idea of your monthly payment, by using a boat loan calculator.

How much boat can I afford?

The amount of boat that you can afford depends on a number of factors. It will depend on your income, your credit score, and your liabilities. You may qualify for a million dollar boat solely based on your income, but when you factor in your monthly expenses, that number may change drastically.

The lender will take a look at your overall financial profile including your debt-to-income ratio to ensure that you can afford to purchase the boat and keep up with the monthly payments. You can check out a boat loan calculator to get an idea of how much boat you can afford. The calculator is a great place to start when you’re boat shopping, but don’t forget about additional expenses such as boat insurance, marina fees, and ongoing maintenance costs.

What is the typical down payment on a boat loan?

The amount of the down payment on a boat loan varies. It’s usually anywhere from 10 percent to more than 30 percent. It depends on the borrower’s credit score, income, and overall financial profile. It also depends on the loan amount and the loan term.

Here are some estimates to give you an example. The average cost of a new boat is around $70,000. If you have excellent credit, you should expect to put down at least $7,000. If your credit is less than excellent, you may need to put down anywhere from $14,000 to more than $21,000. This is just the amount needed for the downpayment and doesn’t include closing costs, insurance, etc.

How long does it take to get approved for my boat loan?

After you submit your application (online is fastest!) and your Trident Funding loan officer has all the required financial documents, they usually have a decision in 24-48 hours, often less.