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Old 01-23-2010, 06:46 AM
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Default taking loan against a boat?

Will the same companies that finance boat purchases also give a loan with the boat as collateral if you already own it? In other words, not a purchase loan.

We're toying with the idea of moving but I may be a bit short for what I want to put down to get the best terms on the mortgage. My boat's paid for, and I was wondering if I could get a loan for the value of the boat, which would get me where I want to be with a down payment on a house.

Anyone do this? What rates/terms did you get? Recommendations for lenders?

Thanks.
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Old 01-23-2010, 06:50 AM
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Yes. The same companies that loan on new and used boats will loan on your boat.Its basically the same loan as if you were buying it used.
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Old 01-23-2010, 12:10 PM
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Some will and some wont. Here's the problem... People in need of cash can't find anyone to buy their boat.. So, they do the next best thing... With today's economy, some persons are trying to get the largest loan possible against their boats, and then don't make any payments. Now the person has the cash to do what they need and the boat that was a problem is now someone elses problem. Your potential lender will get a red flag warning if you are trying to get more than a small percentage of available cash out of the boat. They don't want your boat, they want their cash back with interest. If the lender has already been a victim of the game (we all know the banks are victim's, that's why we bailed them out) then you may have a limited amount you can borrow regardless of the value.
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Old 01-23-2010, 12:12 PM
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Good luck finding one now a days. Let us know the name if you do.
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Old 01-23-2010, 12:20 PM
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I'm not sure this would even work. Lenders will look at all of your assets and your liabilities. If you don't have enough assets without borrowing against one, borrowing would drive your liabilities up and they still won't lend you the money.

If you sold the boat, that would be different. So you could sell the boat, buy the house, and then when you are ready and able buy another boat.

That works, but it's not what you want.

I guess the new economy means a lot of people have that problem. Be lucky you have a job and can buy a nicer place I guess. A lot of people can't say that after the last few years.
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Old 01-23-2010, 01:53 PM
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You will have to disclose weather the cash for down payment is borrowed anyway.
I borrowed against my boat years ago with my bank to pay off high percent debt with credit cards from getting married. Things were a lot different then in the lending world.
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Old 01-23-2010, 02:19 PM
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Default borrowing from peter to pay paul....

Quote:
Originally Posted by Graddy-fied View Post
Will the same companies that finance boat purchases also give a loan with the boat as collateral if you already own it? In other words, not a purchase loan.

We're toying with the idea of moving but I may be a bit short for what I want to put down to get the best terms on the mortgage. My boat's paid for, and I was wondering if I could get a loan for the value of the boat, which would get me where I want to be with a down payment on a house.

Anyone do this? What rates/terms did you get? Recommendations for lenders?

Thanks.
Regardless of whether you can find a bank to do this for you..............talk to your mortgage company FIRST to discuss your intent because they may have a problem with you borrowing money to put money down. At best they won't like it. If you don't tell them, it will backfire on you when they find out, so best to discuss it with them ahead of time and see if your plan will work for you.
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Old 01-23-2010, 02:36 PM
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Plus adding another payment to your debt to income ratio as well as the credit profile (and more inquiries) might disqualify you for the mortgage...

If I was faced with the decision of EITHER A or B, I'd sell the boat. There are plenty more out there...

Good luck!
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Old 01-23-2010, 04:23 PM
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The only way you can "cash out" on the boat you purchsaed is that you bought the boat a few mounths ago. Banks will allow a cash out if the deal was done a few months ago. If you have owned the boat for a long time, say over 3 months, you have no chance
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