Boat Loans

There are few simple ways you can apply for boat financing. We offer an online boat loan application or we invite you to contact one of our Trident Funding locations. The quickest way to get approved for a boat loan is to complete an online application. Our team will be notified immediately once we receive your application, and we will begin the process of getting you approved and on the water!

When you apply for a boat loan, have your tax returns and bank statements available to show your financial ability to repay. These materials will need to be submitted to speed up the review process. You’ll also need to supply information about the boat you’d like to purchase, including make, model, year, length, etc.

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

Lenders require that a borrower identifies a particular boat before giving final approval due to the loan-to-value element, but you may be able to obtain pre-approval in some cases based on your financials and credit analysis.

Boat loan approvals are generally valid for 30 to 180 days and rate commitments typically range from 30 to 60 days. The length that a boat loan approval is good for will vary by lender.

When you apply for a boat loan through Trident Funding, you’ll work with one of our trusted loan officers who will guide you through the process from start to finish. Our dedicated team of seasoned professionals will handle all your requests and questions. Our staff is ready and willing to answer all your loan related questions.

We finance boats that are 20 years old or younger. Some examples include yachts, fishing boats, deck boats, pontoon boats, and sailboats. However, liveaboard boats can’t currently be financed through Trident Funding.

Yes, your boat loan interest is tax deductible! Many boat buyers can take boat loan tax deductions as part of the home mortgage interest deduction. Your boat would need to be considered a second home for federal tax purposes, which means it includes a sleeping berth (bed), a kitchen (galley), and a bathroom (head). You must also itemize deductions in this case. We recommend consulting with your tax advisor for guidance and advice regarding your personal situation.

We do not finance liveaboards, but we do offer boat loan financing on various other boats including center consoles, yachts, fishing boats, deck boats, pontoon boats, and sailboats.

Each situation is unique, and we may be able to fund your boat or yacht loan while the boat is overseas. Contact a sales representative at one of our nationwide locations and they will be happy to discuss your specific transaction to see if we can assist, or if we’d need to wait until the boat is in U.S. waters.

Different boat loans have different criteria, but typically, a marine lender wants to see a debt-to-income ratio of no more than 40-50% including your boat payment. The lower your debt to income ratio, the better. A lower ratio means you’re eligible for more competitive rates, better terms, and it may even mean lower lender fees.

A debt-to-income ratio (DTI) is calculated by adding up all of your monthly debt payments and dividing them by your gross monthly income. It’s a comparison of how much you owe (payments) with how much you earn (income). Expressed as a percentage, this calculation that compares your income to your debt gives lenders an idea of what the risk would be to lend you money for a boat loan. The lower the DTI the better because consumers with higher DTI ratios are generally viewed as riskier borrowers because they may have difficulty repaying a loan in full or making monthly payments.

Here’s an example of how to calculate your DTI:

Your monthly payments = $2,000
Your monthly income = $8,000
Your DTI ratio = 25% (2,000/8,000=0.25)

Boat loans aren’t necessarily hard to get; you just need to be qualified. You don’t have to have perfect credit or make a million dollars to get a boat loan. However, you will generally need a credit score of at least 600, enough money for a down payment of 10 to 20 percent of the cost of the boat, and you should be able to prove that you can afford the boat loan payments.

You will need to show at least two years of employment history, consistent income, and a relatively low debt-to-income ratio. Additionally, lenders will look at your payment history, your tax returns, and sometimes your bank statements. You can apply online with Trident Funding in just a few minutes and see if you’re approved within 48 hours.

After you submit your boat loan application, it is best to hold off on any big purchases, if possible, until the loan is funded. There are a few things you should avoid during the loan process, including applying for new credit cards (also keep all existing credit card accounts open), do not max out existing credit cards, do not buy a new car or do a trade in. It is best to keep in touch with your boat loan officer to ensure you are taking the right steps to close the deal on time.

Most boat loans require a down payment of 10% to 20%. For example, if you’re purchasing a boat for $75,000, you may be asked to put down $7,500 to $15,000. The down payment requirements vary based on the loan amount and the borrower’s qualifications. Feel free to contact one of our knowledgeable loan officers to help answer any questions you have regarding boat loan down payments. Trident Funding also offers zero down boat financing for loans up to $100,000.

There can be a prepayment penalty on boat loans depending on the lender and the loan amount. Boat loans have an expected payoff date, and if you pay off your loan before that date, you may be charged a prepayment penalty. A prepayment penalty is a fee that banks or lenders charge if you pay off your loan early. The amount and if the penalty exists will be stated in your boat loan documents and will be listed under the prepayment penalty clause. It’s a good idea to ask the lender upfront about all loan-related fees including a prepayment penalty, so there aren’t any nasty surprises later on.

While there is no federal tax imposed on a boat purchase, there are state and local taxes. In many cases you can finance the sales tax on your boat or yacht purchase within your loan. We recommend checking with your local state office to see if they have any specific requirements. The sales-tax rate varies from state to state. Some states do not require a sales tax at all when you purchase a boat or a yacht, and in some states, sales tax is only applied up to a certain amount of the boat’s purchase price. Other factors such as lending limits, down payment, and amount financed can impact whether you can finance the sales tax on your boat purchase.

Yes, we offer stated income boat loans up to $250,000! A stated income loan means the lender does not verify a borrower’s income using any records, such as paystubs, W-2 (employee income) forms, tax returns or other records. Borrowers are just asked to state their income, and lenders take them at at their word. However, we would likely need to request further verification in certain circumstances depending on your FICO score or boat loan structure.

Although U.S. Coast Guard documentation is not required for a boat loan, when financing your boat, most lenders will require the boat is U.S. Coast Guard documented. If the lender does not require USCG documentation, they may still provide better terms if you agree to have the boat documented with the Coast Guard. U.S. Coast Guard documentation is generally only required by marine lenders on transactions of certain sizes as well as for boats of certain tonnage that meet USCG requirements.

We assist with all aspects of documentation, registration and tilting when you finance your boat loan through Trident Funding. From loan application to funding, we help answer any questions you have and connect you with any third-party services required to get your boat loan funded to get you on the water!

Our network of marine lenders generally offers used and refinancing on boats as old as 20 years. We work with you to get the best boat loan rate on any new or used boat purchase.

Yes, lenders generally require a marine survey on used boats or yachts when you take out a boat loan. This allows the lender to confirm the boat’s condition and verify other items (registration, hull, and engine numbers) before they approve boat loan funding. Marine surveys also provide customer insight into potential future costs of ownership (i.e. fixes, improvements, etc.) and also help owners determine if they are carrying the proper amount of insurance coverage.

We recommend all used boat buyers hire a marine surveyor to verify the boat’s condition prior to purchase. You can check with the National Association of Marine Surveyors and the Society of Accredited Marine Surveyors. Members of these two national organizations provide marine survey services.

Yes, you may be able to refinance your boat loan if you want to lower your monthly payments or if you want to pay off your loan faster. Refinancing a boat loan may require you to reapply for the loan and may involve additional fees.

If you default on your boat loan, the lender may repossess the boat and sell it to recover their losses. Defaulting on a boat loan can also have negative impacts on your credit score and may make it more difficult for you to obtain financing in the future.