Find The Lowest Boat Loan Rates in Florida

How To Get a Florida Boat Loan

You probably found your dream boat to enjoy the Florida waters and are interested in getting a boat loan in Florida. If it is your first time getting a boat loan in Florida, you may have questions like “is a boat loan similar to a car loan?” or “can I go to my local bank for a boat loan?”. We have all been there, so we wrote this Florida boat loan guide to help boat buyers learn about boat loans, easily secure a boat loan, and get on the water.

Florida Boat Loans Overview

Some people say a Florida boat loan is like a car loan. However, to a bank or lender a boat is typically seen as a luxury asset and frankly, the first thing a person in financial distress will not pay. In saying this, a lender will typically want to carefully evaluate you and make sure you are credit worthy.

I think a Florida boat loan is closer to a home loan or mortgage. You have the option for longer terms like a home (for example 240 months) and the application process is a little more thorough than a car. But don’t get nervous if you have decent credit the process should be a breeze. At Boatzon, we can instantly pre-qualify you and start the loan closing process in the same day.

Florida Boat Loan Requirements

First things first, lets cover some basic requirements for a Florida boat loan. Your credit is step one, and your credit score will set the stage for your interest rates and pre-qualification. Typically, you want to have a 620 credit score and better. Not all, but most lenders today will require a down payment from 10% to 20%.

Income and Debt Requirements

A lender will also look at your debt-to-income ration (DTI). A Florida boat buyer might have strong income, but then have too much debt. Lenders look at this because if you have a lot debt, that means you might have hefty monthly payments for other assets such as cars, RVs, or other toys. They want to make sure your Florida boat loan payment will be a priority and not get ignored if you run into financial distress.

Lenders want to see a DTI ratio of no more than approximately 36%. So how is this calculated? It is pretty simple. You just divide all your monthly debts by your gross income. Your monthly debts will monthly payments such as your house, car payments, credit card payments, and personal loans payments. Keep in mind, not all lenders have the same DTI requirements. Some lenders will allow a higher DTI ratio than 36%.

Details on Your Credit Report

We wanted to cover a few caveats on your credit score. Just because you have a great a credit score, lenders also look a few more things on your credit reports.

1. Lenders look at your payment history and if you make your payments on time.
2. The length of credit history, for example how many years you have had accounts open.
3. The amount of inquiries on your credit. If you are filling out many hard pull credit applications, it may be a red flag for lenders.
4. Lenders will also look at your outstanding balances versus the amount of credit you have available on credit cards or lines of credit.

Which Credit Score Do Lenders Look at?

This is a tricky conversation. Lenders rely on different credit bureaus when they are checking your credit sore and credit report. The three main companies that monitor your credit can report to lenders are Equifax, Experian, and Transunion. However, each agency will typically have a different credit score for you. Then mix in all the different FICO types, and you many have 5 or 6 different credit scores depending for what type of asset you’re applying for. We typically see most bank use Experian FICO 8 score.

Florida Boat Loan Terms

Florida Boat loan terms are actually similar to buying a house. A lender can present 10 year terms, 15 year terms, and even 20 year terms. The longer the term, the lower your monthly payments will be.

How to Apply For a Florida Boat Loan

Boatzon makes the entire Florida boat loan process very simple. In 2 minutes, you can get pre-qualified for a boat loan and see your bank offers for your purchase. Boatzon does a “soft pull” on your credit for this pre-qualification process and this credit check does not affect your credit score. If you do not pre-qualify because of your credit score, we even offer you the opportunity to add a co-applicant to get your loan approved.

The Florida Boat Loan Process

After you are pre-qualified, a boat loan officer will call you to go over your lender offers and answer any questions you may have. The loan officer may have a few more questions to ask you to get the loan formally approved and start the closing process. Boatzon typically provides same day approvals for your Florida boat loan.

Your Florida boat loan will then go into documentation and contracting, in which the loan officer will then need to coordinate with you and the seller or dealer with tasks such as perfecting the lien, purchase agreements, and other documentation needed for funding the purchase of the boat.

Do I need Florida Boat Insurance?

Boat insurance is not legally required in Florida. However, some lenders will require you to obtain boat insurance in Florida to protect their asset in the loan. Also, if you plan to store your boat at a marina, the marina may also require insurance if you dock your boat at their facility. You can check multiple Florida boat insurance quotes by clicking here.