Best Boat Loans of 2023

Dawn Allcot
Spotmatik / Getty Images/iStockphoto
Spotmatik / Getty Images/iStockphoto

Depending on your needs and budget, a boat can cost as little as a used car or as much as a house. For many people, that means taking out a boat loan so you can enjoy your boat now and pay it off over time. Keep reading to find out which lenders offer the best boat loans.

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Best Boat Loans of 2023

If you’re looking for a boat loan, here are five top lenders to consider:

Best for Fast Funding: Trident Funding

Maybe you’ve found a used boat you want to purchase before it’s sold. Or maybe you just want to get on the water faster. Trident Funding works with more than 50 lenders to provide loan approvals in as little as 24 hours, and you can apply online in just five minutes. That makes Trident the best lender for fast funding.

Trident offers loans with terms from 10 to 20 years to borrowers with a minimum credit score of 600. Loans range from $25,000 to $2 million, with interest rates as low as 8.12% for borrowers with excellent credit.

Pros

  • No-money-down loans available for up to $100,000

  • Stated income loans available

  • Fast approval

  • 10- to 20-year terms

Cons

  • No loans less than $25,000

  • No loans greater than $2 million

Best for Smaller Loans: LightStream

If you are looking at smaller watercraft, LightStream can fund marine loans as low as $5,000 and up to $100,000, with terms from 24 to 144 months. Plus, the company offers same-day funding, so you don’t have to worry about missing out on the boat of your dreams and can get on the water faster.

Rates range from 8.49% to 17.14% for borrowers with excellent credit who set up autopay prior to loan funding. The highest annual percentage rate is 25.99%.

Pros

  • Short-term loans available

  • Boat refinancing available

  • Loans as small as $5,000 available

Cons

  • Loans are only available up to $100,000

  • Autopay and excellent credit required for lowest interest rates

Best for Good Credit: Essex Credit

Essex Credit, part of BMO Harris Bank N.A., offers boat loans with APRs as low as 11.74%. The lender says it only issues boat loans to people with a credit score of 700 or above. However, if you meet these stringent requirements, you can secure a loan for virtually any type of boat, including a houseboat as long as it will not be your primary residence. Loan amounts range from $10,000 up to $5 million, with terms of four to 10 years.

Pros

  • Loans as low as $10,000 and as high as $5 million

  • Terms ranging from four to 10 years

  • Will finance hard-to-finance boats

Cons

  • Credit score of at least 700 required

  • Other lenders may offer lower rates

  • Not available in every state

Best for Poor Credit: Southeast Financial

Southeast Financial boasts, “If it floats, we finance it.” And even if you have a low credit score, Southeast Financial may finance your boat purchase.

If you have bad credit, you may want to work on paying down debt and improving your credit score before buying a boat to secure the lowest rates. But if you have found the boat of your dreams and want it now, Southeast Financial can help. You may be able to secure a loan with a credit score as low as 575. Larger loans may qualify for payment terms as long as 20 years, which means your monthly payments will be lower.

The company works with a variety of lenders to secure the best rates on boat loans ranging from $15,000 up to $4 million, with rates starting at 7.49%.

Pros

  • Low minimum credit score requirement

  • Low rates starting at 7.49%

  • Loans up to $4 million

Cons

  • Will not fund loans smaller than $15,000

  • Does not finance houseboats

Best for Yachts: Boatloan.com

Intercoastal Financial Group, otherwise known Boatloan.com, is not a direct lender. Instead, it works with 18 banks to find the best loan for your needs. Boatloan.com can find funding of up to $10 million, but not less than $10,000, making it perfect for prospective yacht owners.

The company has a 4.9-star average rating on Trustpilot, based on reviews from consumers. Multiple reviews spotlighted its responsive and professional service.

Although you apply for the loan online, you will have direct contact via phone or email with a loan professional. Boatloan.com experts will help you complete the application, pull your credit to help determine which bank will offer the best interest rate and loan terms, and then work with the bank to finalize the offer.

Boatloan.com offers terms of up to 240 months (20 years), with interest rates ranging from 5.99% up to 17.99%, depending on creditworthiness, down payment and other factors.

Pros

  • Loans for up to $10 million

  • Low interest rates starting at 5.99%

  • Loan terms of up to 20 years

Cons

  • Cannot fund loans less than $10,000

FAQ

  • What is a typical boat loan term?

    • Boat loan terms range from five years up to 20 years, with some lenders offering terms as short as one year. The typical term varies depending on the price of the boat. Yachts and multimillion-dollar vessels often require 20-year financing to keep payments manageable.

  • What is a typical interest rate on a boat loan?

    • Boat loan interest rates can vary dramatically depending on the type and size of the boat, the loan amount, the borrower's credit score, the term of the loan and other factors. Interest rates can range from 5.99% up to 19.95% and perhaps even higher.

  • Is it hard to get a loan to buy a boat?

    • As with new and used cars, there is currently a low supply of boats and a high demand. This can make it harder to find the boat you want at a price within your budget. Once you find a boat you love, you may need to take steps to finance its purchase. Getting a boat loan is harder than qualifying for a car loan, but easier than obtaining a mortgage to buy a house, according to the On The Water Magazine website. The site recommends using specialized marine lenders, rather than a bank or credit union, for financing. 

    • The good news is that if you qualify for a car loan, you will likely qualify for a boat loan of roughly the same amount since the factors to determine creditworthiness are the same, including your credit score and debt-to-income ratio.  

Information is accurate as of July 17, 2023.

This article originally appeared on GOBankingRates.com: Best Boat Loans of 2023

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