Boat & Yacht Loans | Harris Marine Financing

At Harris Marine Financing we will give you the courteous, confidential service you need.

We want you to enjoy your experience.

HMF offers loans from $10,000 and up for purchases from:

Private Persons
Dealers/Brokers
Refinancing
Cash Recapture

We have some lenders who can finance older boats and liveaboards.

Your interest rate will be determined by your loan amount, the value of the boat, and your credit worthiness.

What to Expect

The entire transaction, depending on the loan, could take as little as a week depending on your loan and the vessel from the time you apply. If you are near our office, we are happy to close your loan in person.

These are the simple steps to obtaining your boat loan:

Apply online using our secure application.
We will usually have a credit decision within 24-48 hours.
We will prepare the loan documents and send them via email for you to print or if needed, we can send them via overnight mail.
You will need to bring the printed documents and sign them in the presence of a notary, then return the loan documents using the enclosed prepaid label.
Upon receipt of the executed documents,, we will submit to the lender for review and once reviewed, we will wire transfer the funds to the seller.

How to Get Started

Simply complete your credit application and
receive a credit decision within 24-48 hours.

Have questions? Call us now, toll free at 877.777.7097 or start a conversation.

WHAT YOU SHOULD KNOW ABOUT GETTING A BOAT LOAN

CREDIT
CONSIDERATIONS

Harris Marine Financing is a company that understands the underwriting guidelines of marine lenders, which enable us to facilitate the boat loan process and enhance your boat loan experience.

Boats are considered a luxury item by marine lenders. Therefore, each lender has its own guidelines regarding the loans they will extend. Understanding what lenders look at when evaluating an applicant can help with the process.

There are three primary aspects lenders consider when reviewing an applicant:

1. Credit History Considerations

When applying for a loan, the lender will obtain your credit bureau report from one or more of the three reporting agencies: Equifax, Experian, or Transunion. Your FICO score will usually play a big role in determining whether you are approved for a loan, and in some instances, what your rate will be. The lender will review the following items:

The length of your credit experience
If you have paid your creditors on time
If you have had any liens, judgments, repossessions, or bankruptcy
The highest installment loan you’ve had in the past
Any boat loans you’ve previously had for total amount and if paid on time
Outstanding balance(s) on credit cards
Percentage of credit card line of credit available versus amount used
Number of recent credit inquiries
Your FICO score

Each marine lender evaluates these items using their own guidelines, and many use their own scoring model to evaluate loan applications. Most lenders will not extend credit for a boat loan to an individual who has a history of bankruptcy or repossession. Harris Marine does work with some sub prime and near prime lenders as well.

To obtain a copy of your credit report visit Transunion, Experian, or Equifax. In some cases, your credit report may be free by visiting www.annualcreditreport.com/index.action.

2. Ability to Repay The Loan

The lender will evaluate your ability to repay the loan based on your income and the amount of outstanding debt you have. The lender will first calculate your debt-to-income ratio based on the amount of income stated on the application. In some cases, usually where the applicant is self-employed or the loan amount is over a certain amount, the lender will require proof of income, such as current pay stubs, W-2’s, and/or tax returns.

Lenders have different criteria for acceptable debt to income ratios and monthly cash flow. The acceptable debt ratio can range from 35% to 45% and may often involve the analysis of amount of free cash after all debts are paid.

To calculate your debt ratio, add up all your monthly debt payments, including your mortgage or rent, car loans, credit cards, and proposed boat loan payment and divide by your monthly total income before taxes. This is your debt-to-income ratio.

If you have a car allowance, business paid credit cards, or other business paid expense, be sure to tell your marine loan consultant so that it is taken into consideration.

A general rule in understanding what it will cost you to own and operate your boat is to “double the payment.” For example, if your boat loan payment will be $250, then it will probably cost you $250 per month to operate it, for a total of $500 per month. When you are shopping for your boat, make sure you are comfortable with the total cost of ownership.

3. Things Lenders Consider When Evaluating Your Boat

Lenders have very different guidelines for the boats and yachts they will finance and the amount of financing they will provide. The lender will consider the age of the boat, the book value or MSRP of the boat, and the condition of the boat, among other things. The amount the lender will advance is called the "maximum loan to value ratio" - Maximum LTV.

Lenders usually require 10-20% of the purchase price or more as a down payment. However, some lenders offer “no money down” programs for customers with excellent credit and loan requests under $50,000.

Marine lenders usually use JD Power or BUC to determine the value of the boat. A formula is used to determine the maximum financeable amount. Some lenders will take extras, such as generators, electronic equipment, or attached fishing gear, into consideration, while others will not. If you are purchasing a boat for which you are paying a “premium” because of desirable upgrades such as re-powering or other great features, be sure to tell your marine loan consultant.

The age of the boat should be discussed before you apply for a loan. Many lenders have “cutoffs” and will not finance boats over a certain age—for example, 20 years old. Other lenders realize that there are great older boats and are happy to finance these boats for qualified customers.

Sometimes, the lender will require a survey to ensure that a used boat is in good condition. We almost always recommend that you obtain a survey for your own education and protection during the boat-buying process. The surveyor is your contractor (not the seller’s or the lender’s) and will advise you on the condition and any repairs the boat may require. There are two nationally recognized associations for surveyors - SAMS and NAMS. Visit their websites for a list of members and details about the survey process.

Insurance
Requirements

Once you have been approved for a boat loan, you will need to work on obtaining insurance to protect your investment. We will discuss the lender’s insurance requirements with you so you can confirm you have the necessary coverage for your loan terms.

Boat insurance rates vary depending on the type and size of the boat, where you live, where the boat will be stored, your experience operating a boat and how you use your boat. You can request boat insurance quotes from several insurers to find the best rate.

Loans