Owning a yacht is a dream come true for most people. Imagine yourself sailing around the world entertaining your friends and family onboard your very own luxurious yacht. Whether you want to host dinner soirees, cruise through the Caribbean, spend the night in your own stateroom, or enjoy a day of sunshine lounging at a sandbar, a yacht is the way to go.

A yacht can be a boat with a motor or a sailing vessel and is typically forty feet or longer. The word ‘yacht’ has Dutch origins and was originally used to describe a fast and lightweight sailing vessel. The Dutch navy used these types of boats to catch pirates. But today, the word is often interchanged with boat and is used to describe a larger and more luxurious vessel. There are different categories of yachts including super yachts and mega yachts which label the yacht based on its length. 

Regardless of what size yacht you want to buy, you will probably need to consider using yacht loans to help you pay for it. Yacht loans are often referred to as boat loans and their rates and terms, loan amount, and fees vary by lender. Customers use yacht loans for a number of reasons. They may not have enough cash to pay for the yacht in full or may not want to spend that much out of pocket. Yacht loans have a number of benefits in helping achieve your dream of yacht ownership. 

Some of the pros of using yacht loans include:

  • Less cash required upfront
  • No need to spend your savings or liquidate your stocks
  • Invest the money you would have used to purchase the boat outright 
  • Have more money available for repairs, maintenance, and other yacht-related costs
  • Plan your budget with fixed monthly payments
  • The lender ensures a smooth transaction and takes care of all the details for you 

How to Apply for Yacht Loans

So, you’ve decided that you’re at a point in your life that you’re ready to purchase a yacht. This is such an exciting time, but it can be a bit overwhelming too. You need a trusted partner to help guide you through applying for yacht loans. 

Trident Funding can help you sail through the process. We are a reputable loan origination company and have almost 30 years of experience with yacht loans and working with marine lenders. You can check us out online, reach us over the phone, or visit one of our six offices located throughout the country. We will help you each step of the way starting with your initial application, to underwriting requirements, insurance quotes, inspections, U.S. Coast Guard documentation, state title, closing services, funding, and more. 

When you’re ready to apply for yacht loans, you will typically need to have the following handy:

  • Identification: Driver license or state ID
  • Social security number or equivalent if a non-U.S. citizen
  • Proof of income for the past two years
  • List of debts and assets 
  • Boat information: Year, manufacturer, length, and purchase price etc. 
  • LLC or trust information if not purchasing the yacht in your own name 

You can easily apply for yacht loans online in just a few minutes. Trident Funding will help find you the best lending partner based on your unique financial situation and specific needs. We work quickly and most customers are matched with a marine lender within 24 to 48 hours of applying for a yacht loan. 

Each customer is different and there is no one-size-fits-all approach. For example, if you’re purchasing a yacht that is 50 feet long and $150,000, your loan product will be different from someone who is purchasing a 120-foot $2 million dollar super yacht. Trident Funding has a dedicated team to assist with yacht loans. Each team member has marine financing knowledge, knows about the latest funding programs, and treats you more like a friendly acquaintance rather than just another customer. 

Loan Calculator

During the yacht loan application process, you may want to play around with some numbers and see how much yacht you can afford based on an estimated monthly payment. Check out a yacht loan calculator to give you an estimate of your monthly payment. Keep in mind that the monthly payment only includes the principal and interest and doesn’t factor in additional expenses such as yacht insurance and docking fees. 

To use the loan calculator, simply fill out some quick information about yourself and the boat you want to purchase. Check if the boat is new or used, or if you’re refinancing, the year of the boat, the loan amount, and your credit score range. For example, an excellent credit score is between 800 and 850 and will get you the lowest interest rate. You can use the loan calculator as a tool to see what the difference in monthly payments will be between a $100,000 yacht and a $150,000 yacht and so on. 

Loan Amount, Rates, and Terms

Loan amount, rates and terms vary between lenders. They also depend on if the boat is new or used, its age, size, and the overall credit profile of the borrower, as well as the current market conditions and what the prime rate is. In addition to using a yacht loan for purchasing a new or used boat, you can also refinance your current yacht loan with Trident Funding. 

Trident Funding offers loan amounts ranging from $25,000 to $2 million. A credit score of 680 or higher is needed to qualify and the lender will also look at your debt-to-income ratio, income, employment history, and assets. Loan terms are typically between seven and twenty years. As of July 2022, interest rates for yacht loans start around 5.24% for well qualified borrowers. Short-term and long-term loans are available with fixed rates and 60-day deferred payment programs are available on some loan products. Yacht loans can be used for private party purchases and dealer purchases. They can be used for project boats, mega yachts, and everything in between, but financing isn’t currently available for liveaboards. 

The Wrap Up

Owning a yacht is a big expense and responsibility but it can truly change your life. It opens you up to a whole new sea of possibilities. It’s a great way to slowly travel the coast, enjoy leisure time with family and friends, or host events. Additionally, chartering your yacht can provide you with some extra income to offset the ownership costs. 

However, in order to enjoy this luxurious lifestyle, you need to purchase a yacht and yacht loans can help you do just that. They can ease the financial burden of ownership and make it more affordable by spreading out payments over years. Apply online with Trident Funding today, leave all of the details to us, and look forward to getting out on the water.