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Atlantic Horizon Capital provides best-in-class service from the beginning through the closing of every loan by offering the highest level of Customer Service ensuring a seamless process for our clientele
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When you are ready to hit the water, Atlantic Horizon Capital can help finance your purchase. Many of these loans can be funded in a few days, meaning you will not have to wait long to set sail. We are different from other types of lenders. Find out why you need to finance your boat purchase through Atlantic Horizon Capital.
How Does Boat Financing Work?
Boat loans are available through a number of different channels, but specialty lenders are often the better choice as this is a very specialized type of loan. Banks and traditional lenders are fine for car and home equity loans, but boat financing is a little more purpose-specific.
Obviously, there will be an application/evaluation process, as with any other type of loan, which will include a credit check. Before this begins, you will need to decide what sort of boat you want and how much you want to borrow. Then, you will have to provide all the required information and wait for the lender to review that information.
If you are approved for a boat loan, the lender purchases the boat on your behalf. You will probably have to make a down payment, usually 20% of the purchase price. So let’s say your boat costs $100,000: Your down payment would be $20,000 (20%).
Once you sign the loan documents you are responsible for repaying the loan under the terms of the agreement. This will typically be done by using a set monthly payment for the negotiated term. In most cases, while there are no prepayment penalties, you are required to make 6 monthly payments before you can consider paying off your loan in full.
Traditionally there are two types of loans, secured and unsecured. Boat loans are considered secured loans because the boat you are purchasing is the collateral. The bank will be placing a lien on the boat thereby securing their collateral. As result, if you fall behind on your payments, the bank has the right to repossess the collateral… your boat. Clearly, this is not the outcome that anyone wants and should be avoided.
Who Should Get a Boat Loan?
If you are wondering whether you should get a boat loan, it will depend on several factors. The biggest among them is why use all of your cash to purchase this boat OR I don’t have the entire cost of the boat, so I need to borrow money. These assets can be pricey, and you may want to spread out the costs over a few years. If you are ready to finance a boat purchase, Atlantic Horizon Capital is ready to help you.
Interest Rates and Boat Loans
As you may have guessed, interest rates can change depending on the economy. With that in mind, you can expect to pay around 7% APR for the lowest boat rates. These boat loan interest rates will vary by lender. The average personal loan will have an interest rate ranging from 6% to 20%.
Many factors will determine your specific interest rate. Your credit score will play a large part in whether or not you qualify and what rate you qualify for. In many cases, it is recommended to have a score of 740 to have a better chance of qualifying for a more competitive rate. If you want to know what you can expect for your boat loan, talk to the lending team at Atlantic Horizon Capital.
Getting a Boat Loan
While many lenders have specific steps for applying for a boat loan, we like to make the process easier for you. Here are a few points to take into consideration for your loan with Atlantic Horizon Capital.
Check Your Credit
When you know your credit score, it can help you to save money by lowering your interest rate. You should always check your credit to ensure no discrepancies in the report. Typically, boat loans do have a minimum requirement of 670 to qualify.
Know About Pre-Qualification
When you shop for a boat loan, you will want to see whether you can pre-qualify. Sometimes, you can complete pre-qualification without running a hard check on your credit report. Pre-qualification does not mean approval. The terms are only guaranteed once you submit an application. Reach out to Atlantic Horizon Capital to see if we are currently offering pre-qualification for boat loans.
Submitting an Application
Unlike traditional banks, we work quickly to approve your loan. You will not have to schedule a meeting at a bank or fill out lengthy paperwork with a loan officer. We can have your application approved in a few days. First, you will need to submit an application and provide all the boat details, including age, make, and model.
Easy Deposit Options
After you have been approved, you can get the funds and send them to the seller of the boat. Once it comes time for repayment, you can pay right from your banking account. Ask us how we can get the funding for your next boat directly to you.
Boat Loan Qualification Requirements
Generally, you will need some information to complete the loan process. Your financial situation and the specific boat will determine whether your application is approved or denied by us. Like an auto loan, the age of the boat can affect your loan terms. Some boats can only be financed up to a specific time, while others qualify for a loan for up to 20 years. With older boats, there are a few restrictions. If you have questions about financing options for your boat, make sure to contact us at Atlantic Horizon Capital.
Additionally, borrowers should think about the down payment for the loan. In many cases, you can expect to put down at least 10% to 20% of the total purchase price of the loan. The higher the down payment, the lower your monthly costs. Also, a higher down payment can help you get a better interest rate for your boat loan.
Personal loan lenders will also consider your income. You must verify your income with W9s, 1099s, tax returns, or a personal income statement. As always, Atlantic Horizon Capital is here to help answer any of your questions regarding qualifications for our personal boat loans.
Get Your Next Boat Loan from Atlantic Horizon Capital
Atlantic Horizon Capital has a dedicated team of Lenders with over 30 years of lending experience to guide you through the process. Atlantic Horizon Capital’s goal is to provide you with Exceptional Service while obtaining the best rate and structure for your borrowing needs.
You can apply for a loan using our online application or you can call one of experienced lenders to walk you through the process
Absolutely! In today’s age of technology Atlantic Horizon Capital understands that most buyers may not be available to “come in” and sign their loan documents. We have harnessed today’s technology to make your closing experience as easy as possible. In most cases we can have you sign the closing documents in the privacy of your home and email the documents back to us.
In order to give a final approval, Lenders require that customers identify a particular boat due to loan to value considerations (Year, make, model length etc.). In some cases, a pre-approval can be obtained based on your credit and financial statements.
Copies of Federal Tax Returns, bank statements and pay stubs are needed to show your ability to repay the loan. In addition, the Year, Make, Model & Length will also be needed. Having all this information readily available can help your loan get processed faster.
Once you have submitted an application to us and we have all of the financial documents we can usually receive an decision in 24-48 hours.
While new boats generally offer a one year warranty, purchasing an extended warranty can help you save money in the long run. We offer a wide range of Extended Warranties through United States Warranty Corporation, a 47 year old company that is well known in the industry that has helped thousands of boat owners over the years. Whether you are looking for an extended warranty covering your whole boat or just the engines, we offer warranties that will help you sleep better knowing you are covered.
Financing your boat purchase allows you to free up cash that you would otherwise use to purchase your boat. By financing, you can spread the payments out over years so that you are comfortable with the payments.
Yes, your boat loan interest may be tax deductible. In order for this to occur your boat would need to be considered a second home for federal tax purposes, so it must include a galley(kitchen), head(bathroom) and at least one sleeping berth(bed). In addition, you must itemize your deductions. We recommend you consult with your accountant or tax advisor for assistance and guidance based on your situation.
Most boat loans require a minimum of 10% to 20% down payment, but 20% is the norm. Down payment amounts can vary on a borrower’s financial qualifications and the loan amount. In some cases, a poor credit score can be overcome by putting more money down and showing financial liquidity.
Yes, absolutely you can. In many cases borrowers can finance up to an additional 20% of the boats value for additional add-ons or upgrades. Each Lender has a different threshold for the maximum amount you can add to your boat loan.
Debt to income ratio is a comparison of how much you owe with how much you earn. It gives lenders an idea of what the risk to lend you money for your boat purchase would be. The debt-to-income ratio is calculated by adding up all of your monthly debt payments (how much you owe) and dividing it by your gross income (what you earn). That number is then multiplied by 100 to express it as a percentage. An example would be your monthly debt payments are $4000 and your gross income is $12,000. The $4,000 divided by $12,000 equals .3333 multiplied by 100 equals 33%. For this example your debt to income is 33%.
The lower your debt-to-income ratio the better it is for you. A lower ratio can help you obtain better rates and better terms. Different Loans have different criteria, but typically a Lender wants to see a debt-to-income ratio of no more than 40%-50% including your boat payment.
Types of Loans We Offer
Boat Loans - Aircraft Loans - RV Loans
Still have Questions?
Getting the Right Loan for you has never been easier.
We offer borrowing solutions that can be customized to address your individual tax, cash flow and usage objectives. We regularly work with the industry’s leading manufacturers, servicers and key players, and are fully versed in the latest lending options available.