[bravehaarrt]

OK went house hunting and was so put off with the garbage I am asked to do by my loan processor that I want to go another route. Having said that, where could a man go to get a boat loan. My credit union wont go more than 5 years. I was wanting to go much longer to get the mo pmt down.

 

[miatapaul]

Credit Unions often have the most flexible terms. Really depends on how much you want to borrow, but it will be tough without a house. Banks like to see stable, both location and income. Few will loan if you plan to liveaboard, unless you have a long history with a local bank. Are you a veteran by chance? I have heard of folks getting good terms from the VA. But unless you are talking new boats, I doubt you will see more than 5 year terms.

 

[bravehaarrt]

I'm not a veteran. Boat US advertises 15 and 20 yr loans but I have never dealt with them before. I do have a house in another state - maybe that will do?

 

[miatapaul]

I think it really depends on the $ of the loan, and how long they think the asset will hold its value. Are you dealing with a boat broker? They likely know good sources of loans, as it is to there benefit to make sure the deal goes through.

 

[Rapp]

The cheapest way to pull money out of a house is a Home equity line of credit or home equity loan.It may be difficult if its your second home though and it'll depend on the area,there's still a lot of foreclosures coming back on the market pulling down comps and banks aren't too aggresively lending right now.

 

[hellsop]

Now you know what BoatUS is doing with all those insurance payments. *grin*

I'm gonna second the idea of going to a specialist, broker or otherwise. That's the sort of lender that's actually going to understand the depreciation curve of boats (which confused conventional lenders that only really understand "boat" as a ski-tow or bass-fishing platform, being actually someplace between "house" and "car"), and know what kind of requirements make sense to apply to secure the loan.

 

[Don L]

I've gotten 2 15 year term boat loans the past 6 years. 1 was from Essex on a $72k boat and current is with Suntrust on a $115k boat. Both were with 20% down and during the recession.

 

[overbored]

home equity loan can be a good way. the loan interest is a write off. boat loans there is no write off in most cases. if you can get enough from the equity in a home to buy the boat you do not need a down payment like a boat loan so you can keep some cash. you will however spend the cash to fix the boat, so it will be spent and then some. with a yacht broker, the seller pays the broker fees and he want the boat to sell.

 

[theonecalledtom]

Wells Fargo did our first loan on a 30 year old boat but it took us six months and a huge amount of hassle to get the paperwork saying we owned the boat after we'd paid it off...... completely ridiculous.

 

[bravehaarrt]

Buying a house in Missouri has got to be different than anywhere else. Minimal amount of paper work and settlement for the last place I sold was $550. Here in FL? OMG - $6000 just for settlement and that's on a cheap house.

I'd prefer just about any alternative.

 

[Hush34]

If you think living on a boat will be cheaper than living ashore, you may want to sharpen your pencil and refigure your calculations. Homes appreciate (generally) boats depreciate (always). Enough said.

 

[bravehaarrt]

not too worried about appreciation in todays market. Monthly expense is the big consideration. Positive monthly cash flow is #1 for me now. If a boat can provide the highest number, then a boat it will be. And I really am sick of people putting their hands in my pocket who have done nothing to earn it, aka-settlement fees...

 

[hellsop]

home equity loan can be a good way. the loan interest is a write off. boat loans there is no write off in most cases. if you can get enough from the equity in a home to buy the boat you do not need a down payment like a boat loan so you can keep some cash. you will however spend the cash to fix the boat, so it will be spent and then some. with a yacht broker, the seller pays the broker fees and he want the boat to sell.

BoatUS says boat loan interest gets a deduction just like mortgage interest, so long as the boat in question has a head, galley, and berths. And the Sales/Use tax paid counts as a deduction as well.

Tax Tip: Boat Owners May Have Federal Tax Deductions Available : BoatUS Press Room

 

[hellsop]

If you think living on a boat will be cheaper than living ashore, you may want to sharpen your pencil and refigure your calculations. Homes appreciate (generally) boats depreciate (always). Enough said.

Yeah, but the house money doesn't come back out until you sell, if then. Most of the friends I've got that bought houses in 2005-2008 are *still* under water, even if they're perfectly able to make their payments. Maybe the place will appreciate back up to what they paid again sometime, but it ain't yet. Places that do better? Well, they're the ones where used houses go for new boat money anyway. You might be able to pay off $20k plus interest per year, but I can't.

 

[Rapp]

I see from the original post that you started looking for a house and got aggravated so you switched to looking at boats to live on.I think it may be best for you to reconsider going back to house hunting.I see you're a handyman from looking at your profile.My reasoning is this-there are no deductions for taxes ,interest on boat loans,also being a handyman you have an advantage,you can get a fixer upper and use a 203b loan to fix it up.Thats an FHA loan with minimal down,then its like a construction loan from there.There are plenty of other ways to go about finding a home.Small banks usually sell their repos themselves.Call around, ask for REO departments in the banks,a lot of times they will finance them for you.Older FHA loans and VA loans are assumable.I've talked to small banks that had loans that weren't assumable and they allowed me to take over loans that were in default.I've been in Real Estate for 28 years and one thing I learned is you have to knock on more than one door for financing.There are plenty of oppurtunites especially if you can do work yourself.I,m not trying to talk you out of the boat deal,but just give you some other options.

 

[miatapaul]

If you think living on a boat will be cheaper than living ashore, you may want to sharpen your pencil and refigure your calculations. Homes appreciate (generally) boats depreciate (always). Enough said.

Well while boats generally depreciate, many do not nearly as much as some think or say. A 30ish foot 1970's to 80's in good shape likely sells for very close to what it cost to buy new. Go to a high end quality boat like a Hinkley and they appreciate even new. So it is not so that they "always" depreciate. Houses also come with property and school tax that boats don't in most states. Here in New York I doubt, after figuring in the cost of taxes, property has appreciated for 10 years or more, and still have not come to near where they were. Figure maintenance costs on a boat to be about the same as on a modest house. And your slip fees are going to be a loss for sure. But Here in New York (about 70 miles north of NYC) I have a modest house (about 1400 square feet) and after taxes but before any maintenance or utilities it costs me about 1,500 a month. My utilities are over 400 a month (electric, water, oil for heating and basic cable/phone/internet, no air-conditioning) Granted I have a lot more room than I would in boat. But the least expensive studio is going to be about $950 a month + utilities, and be in a not great neighborhood and not much more room that a 35 foot boat.

So my point is that some places it actually can make financial sense to live aboard. Don't even get me started about NYC. So long as you buy smart I think it can make perfect financial sense to liveaboard. Buy a new boat, will be a loss for sure. Is it for everyone, no. For me it is more an issue of can I afford both, no. So what do I want more a house or a boat, now that is an easy answer. If I am going to sail on anything but a tiny trailer sailor I have to liveaboard. But I am becoming single so don't have to answer to anyone.

 

[christian.hess]

Wells Fargo did our first loan on a 30 year old boat but it took us six months and a huge amount of hassle to get the paperwork saying we owned the boat after we'd paid it off...... completely ridiculous.

wow thats my bank...they have some weird things for sure...its obvious they make money as they are pretty much the biggest bank here and elsewhere they seem to be doing great

I wish it would trickle down to the consumer...

we are looking for a loan for a house next year

 

[miatapaul]

wow thats my bank...they have some weird things for sure...its obvious they make money as they are pretty much the biggest bank here and elsewhere they seem to be doing great

I wish it would trickle down to the consumer...

we are looking for a loan for a house next year

They hold my mortgage and were awful to deal with. Left hand had no clue about what the right hand was doing. They screwed up two separate deals and prevented another from even starting.

 

[christian.hess]

screw that!

 

[travlin-easy]

I've owned 17 boats, never borrowed anything from a bank to buy 16 of them. The very first boat I owned was purchased in 1962, a 30-foot powerboat cruiser made of mahogany. It was custom built by the original owner in his back yard and it was beautiful. He was 70 year old when I met him and said he was no longer physically able to go out on the boat safely. He offered it to me for $1,500, which back then was a lot of money to me. I went to the back to borrow the money and they turned me down, saying they just don't feel comfortable loaning money on boats. I had to come up with a 40-percent down payment before they would agree to loan me the balance at 12-percent interest. Since then, I've paid cash for every boat - just makes a lot more sense to me.

Gary