Boat Slip Financing

Can you finance a boat dock?

Yes, you can finance a boat dock. If you have excellent credit you may qualify for lower rates and higher loan amounts but many credit types can qualify for boat dock financing. Boat docks can be a smart investment if you are able to build your own. If you don't have your own dock you may have to pay hefty fees to use someone else's dock. Acorn Finance makes boat dock financing easy. Acorn Finance can connect borrowers with lenders that can provide boat dock financing. Personal loans are a great choice for boat dock financing. Personal loans do not require collateral, and may be easier to qualify for than secured loans. At Acorn Finance you can receive instant pre-qualification for boat dock financing and next-day funding in some cases. Before applying for a boat dock loan we recommend determining how much your project will cost and what kind of monthly payment you can afford. This can help you apply for the correct loan amount and choose the most favorable terms for your budget.

How long can you finance a boat slip?

Boat slip financing terms vary depending on the type of loan you use and what you qualify for. Secured loans may offer longer loan terms than unsecured loans but may not be necessary for boat slip financing. In most cases, unsecured personal loan terms are flexible enough to provide affordable monthly payments that are easy to manage. Acorn Finance has lending partners that can offer boat slip financing up to 12 years. While a long-term personal loan may mean a lower monthly payment, you should think twice before choosing the longest term available. The longer the loan term, the more interest you'll potentially pay. If you can't afford the payment on a shorter loan term then yes you can go with a longer term. However, if you can afford the payment for a shorter term you may want to consider that as a lower-cost option. Before committing to any loan you should make sure you can cover the monthly payment.

Do boat manufacturers offer financing?

Some boat manufacturers may offer financing or partner with a trusted lender that can offer financing. Similarly, boat retailers may offer in-house financing or partner with outside lenders. Most boat loans are secured loans that use the boat as collateral. If you default on a boat loan they can repossess the boat. Since boat loans are secured loans based on the value of an asset, you usually cannot borrow much more than the boat is worth. Therefore, if you want to finance a boat and a boat dock you'll most likely need two separate loans. Financing a boat can be compared to financing a vehicle. While the processes may be similar, the restrictions may vary. For example, you may be able to secure more than one car loan at a time if you have a good credit score. However, if you are still making payments on a current boat loan, it will be nearly impossible to get another boat loan. You'll most likely need to trade in or pay off the current boat loan before securing a new loan.

What are typical boat loan terms?

Some lenders offer boat loan terms up to 20 years. Boat loan terms can depend on the borrower, loan amount, the lender, and other factors. Before purchasing a boat you'll need to figure out how to afford your purchase. If you are financing, the loan term can weigh heavily on your monthly payment. We recommend estimating what your purchase will cost and how much you will need to finance. Once you have ballpark estimates you can use online boat loan calculators to determine what term provides you the most favorable payment. If you have excellent credit you should be safe to assume that you'll secure a low rate. However, if you have credit challenges you may want to use a higher interest rate when estimating payments with a boat loan calculator. Most boat loans are secured through dealer financing. Most dealerships have relationships with banks and financial institutions so that they can provide financing. If you plan on using dealer financing, you can visit the dealership to get pre-approved and estimate monthly payments.

What credit score is needed to buy a boat?

Most lenders consider a boat to be a luxury item purchase – something you want but probably don't need. In addition, boats can be very expensive to purchase and maintain. Lenders want to ensure that a borrower is financially stable before approving them for a boat loan. To qualify for a boat loan you may need a credit score of 700 or higher. You may qualify for a boat loan with a credit score below 700 but you'll most likely need money down. Even with money down, the interest rate will probably be higher. If you have credit challenges but want to purchase a boat you might consider a personal loan. Personal loans may have higher interest rates but can be easier to qualify for. You can explore options for personal loans for a boat dock or boat financing at Acorn Finance.

Is boat financing hard to get?

Compared to other types of financing such as vehicle loans, boat financing may be harder to get. Unlike homes and cars, most people do not need a boat. This is one of the reasons why it may be more challenging to secure financing. However, if you have good credit and solid income getting a boat loan may be easier than you think. You can check with your bank or credit union to see if they offer boat financing. In some cases, banks and credit unions can offer better rates and terms than boat dealerships. Keep in mind that if you're buying a used boat, it has a value just like a used vehicle. Most lenders evaluate the value of a boat using NADA. It's important to make sure you're paying a fair price for a boat so that your loan to value requirements are in line. If you have credit challenges you may be able to use a personal loan for boat financing.

How expensive is owning a boat?

Boat ownership is a dream for some of us, until we find out what owning a boat really costs. Of course you have the initial cost of purchasing a boat but that's just the beginning. On top of purchasing the boat you'll need to store or moore, maintain, insure, register, and fuel the boat. In some states you may even have to pay a boat tax. If you can't keep the boat in the water all-year, you may need to pay for winter storage which can cost about $2,000. Maintenance costs can vary but you can estimate annual maintenance costs at about 10% of the cost of the boat. When considering what you can afford as a monthly payment for a boat loan you should consider the extra expenses you may have to come out of pocket for.

Is it easier to finance a new or used boat?

The answer to the question is a toss up. While you may get a lower rate on a new boat loan, you'll most likely have to finance more money. In addition, you may experience significant depreciation in the first few years of owning the boat. If you get in a financial jam it may be harder to sell a brand new boat versus a used boat.

Who has the best boat financing?

The lender with the best boat financing can vary depending on the borrower. If you have excellent credit, you can probably obtain competitive boat financing from multiple lenders. However, if you have credit challenges you may have to shop around a bit more. LightStream, an Acorn Finance lending partner, is one of the best boat loan lenders for quick funding.

How much does it cost to rent a boat slip?

The cost of renting a boat slip mostly depends on the size of the boat and the location. Renting a spot or slip off the dock in the US costs an average of about $50/ft per year. However, location can significantly impact the cost. In some places, it can cost $240+ per foot annually. At $50/ft per year, a slip for a 45' boat should cost about $2,250 annually.

How much does it cost to finance a boat dock?

On average building a boat dock typically costs somewhere between $3,118 and $25,306. There are many factors that can impact the cost of building a boat dock. These factors include climate, location, depth, saltwater or fresh application, and type of dock. Permanent boat docks such as crib, suspended, and piling can be some of the pricier options. Floating boat docks can be one of the least expensive options and are easy to maintain. If you have a small floating dock it should be easy to remove it from the water if needed. Using prefabricated aluminum floating docks can help keep the cost down. Pipe docks are another affordable option for lakes or calm waters. Pipe docks are usually easy to assemble and not permanently affixed. While wood may be the cheapest material for a dock, concrete may be a better investment. On average, wood docks cost between $80-$150 per linear foot and concrete docks cost between $150-$300 per linear foot. However, concrete docks can last for 50+ years. Wood docks usually only last about 15-20 years. Let's take a look at boat dock prices by type...

– Floating boat dock $15-$35 per square foot

– Crib boat dock $10,000-$50,000 total

– Pipe boat dock $1,000-$10,000 total

– Piling boat dock $20-$40 per square foot

Is financing a boat dock or boat slip a good idea?

If you don't have the cash available to build a boat dock or slip, financing might be the next best option. Even though you will most likely pay interest at least you will own your boat dock once the loan is paid off. If you have to rent a boat slip or dock you are required to pay monthly or annually. In exchange, you have a place to keep your boat but you do not have an asset to show for the money paid.

What to consider before building and financing a lakeside boat dock:

#1. Stationary vs. floating

Stationary or permanent docks are typically built on wood or concrete piles. They are stable and strong when installed properly. While floating docks can be more versatile, they can rise and drop with water levels. Floating docks float on the surface of the lake, hence to their name. Before building a lakeside boat dock you should consider whether you need a stationary or floating dock.

#2. Depth of water and lake bed

If the lake bed is rocky or has a big drop in depth it may not be an ideal spot to build a dock. For best results, the lake bed should be as flat as possible and sandy. If you have a less than ideal lake bed and unreliable water depth you should consider building a floating dock.

#3. Materials

You may be tempted to use materials such as wood because it's cheaper but you should remember that better materials can last longer. If you live in an area with harsh weather conditions you should do your research to select the most durable material for conditions.

#4. Hire a professional or DIY

If you are pretty handy with a nice collection of tools you may be able to build a small floating dock on your own. However, building a dock can be complicated especially if you lack experience with waterfront structures. In most cases hiring a professional is a worthy investment to ensure your dock is built properly.

Best financing options for boat docks

If you need a loan to finance a boat dock or slip you should look into using a personal loan. Personal loans do not require collateral, are easy to qualify for, and can allow you to borrow generous amounts. Once you are approved and receive funds you can use the money however you would like. Whether you have good credit or bad credit you can qualify for a personal loan. So where can you get a personal loan? Acorn Finance is an online platform that partners with hundreds of reliable lenders that offer personal loans. Simply submit one online application that does not affect your credit and receive multiple personalized loan offers within seconds. Let's take a look at some of the pros a personal loan can offer...

Low APR Personal Loan for Boat Slips

– Personal loans up to $100,000

– Competitive interest rates as low as 6.99%

– Terms up to 12 years

– Receive pre-qualified offers without impacting your credit score

– Easy to activate

What credit score do you need for boat financing?

If you are looking to purchase a new boat, many traditional lenders will be expecting a credit score of 700 or above. They want to see that you already have completed the full loan repayment periods for previous loans, that you have a demonstrated history of making on-time payments, and that you do not have any red flags on your account like a previous car repossession or a home foreclosure. If you have a credit score above 700, it typically means you likely do not have any of those major red flags in your recent credit history.

However, there are many circumstances where you could still qualify for a boat loan if your credit score is below 700 by including a down payment and by paying a much higher interest rate and other possible fees.

If you are looking to purchase a new boat, and you want to purchase it without using the boat itself as collateral, then an unsecured personal loan might be your best option.

With an unsecured personal loan through an online lender, you are allowed to use the funds from the loan for anything you choose, and you do not have to use the purchased item as collateral, i.e. the boat. Your credit score does not necessarily need to be above 700 and you simply pay off the purchase of the boat over the loan period.

Can I get a boat loan with a 500 credit score?

If you are looking for a boat loan with a credit score of 500, you may find it extremely difficult to qualify without a cosigner. Most lenders have a minimum credit score threshold in the mid-500 range. Even with a credit score of 550, you are going to have to pay the highest of interest rates and be required to make a down payment of at least 10%. That being said, if your credit score is 500, you may still be able to qualify but you will need to discuss with the lender what their terms may need to be. You may have to pay a down payment much higher than 10% or agree to pay an origination fee, or even use another asset as collateral in addition to the boat. There still may be a way for you to purchase a boat with a credit score of 500, but it will be quite difficult.

Can I get a boat loan with a 670 credit score?

Yes, having a credit score of 670 may be exactly what you need to get a boat loan. Most lenders list their minimum credit score for a boat loan and you should be able to find lenders that can qualify a borrower with a 670 credit score. Although there still are several lenders that stick fastly to that 700 or above rule, a credit score of 670 may be just fine for many lenders, as it still demonstrates that you have enough creditworthiness to be responsible for making your monthly payments in full and on time. They may take a harder look at your debt-to-income ratio, but if you have any doubts, go ahead and discuss the conditions of the loan with the lender.

Can I get a boat loan with a 700 credit score?

The gold standard minimum credit score for a boat loan is 700. You should have no problem qualifying for a boat loan with a lower interest rate and the most favorable terms with a credit score of 700 or above.

Is it hard to get financed for a boat?

Boat financing is actually quite easy to acquire and it is pretty common in many places within the United States. Boating is a favorite pastime of many American families and therefore boat financing is there to make people's boat realities come true.

The only time getting a boat financed is hard is when you have credit challenges or a lack of income. Many boat dealerships have their own financing options similar to a car dealership. You can either choose to use the financing the boat dealer provides for you, or you can prequalify for a personal loan to finance your boat purchase. If you prequalify for a personal loan to finance your boat purchase you will be able to have a good idea of what your budget will be. You will also be able to compare your prequalification estimated APR against what the boat dealer is willing to offer you. Your bank or credit union may offer boat loans as well. Regardless of the lender or type of loan, it's important to consider all your options of financing before you make your next new boat purchase.

How much of a down payment do I need for a boat with bad credit?

If you are looking to purchase a boat and you need financing to do so, many lenders are going to require a down-payment for borrowers who have bad credit. For example, a borrower who has a credit score of 600 may be required to come up with a 10% down-payment to qualify for the loan. An individual with a credit score even lower than that, like 500 per se, may not qualify for a boat unless they provide a down payment much more substantial than 10%. The best way to determine what kind of down payment you need and if you qualify is to apply. If you don't have a down payment your only option may be to use a personal loan, if you can qualify.

What credit score do you need to finance a jet ski?

To finance a jet ski, you will most likely want a credit score of 640 or higher. Financing a jet ski is exactly like financing a boat or a new car. You can choose to finance directly through the jet ski dealer, or you can explore alternative methods of financing. Most loans have repayment periods of 36 or 48 months, however, if you can afford the monthly payments, you can choose to do even less. If you finance directly with the dealer or the manufacturer, remember that it will include a lien on the jet ski in case you default on your loan. You can also get a secured or unsecured personal loan through an outside lender.

What are typical terms for boat financing if I have bad credit?

If you are looking for boat financing and you know you have bad credit, you are going to want to prepare yourself for some of the terms you may be offered that other borrowers with better credit will not have to deal with. You will want to prepare a down payment of at least 10% and also be prepared to make higher interest payments. If this is the case, you may want to set a predetermined budget for your jet ski purchase and save up a down payment based on that budget as well as make sure you remain to the budget. Borrowers with bad credit usually only qualify for short repayment terms if they qualify at all.

Can you get a boat slip or dock with bad credit?

If you have bad credit, you may be able to finance a boat slip or deck. Building a boat dock or slip may not be an urgent need. If you can hold off, you should invest time into rebuilding your credit score before applying for a loan. If you can increase your credit score 20 or 30 points, you can increase your chance of approval. You can also increase your chance of locking in a more favorable interest rate and term. If we are looking at FICO scores, we can classify them as follows:

Poor 300-579

Fair 580-669

Good 670-739

Very good 740-799

Exceptional 800-850

If you can achieve a FICO score in the good range, that is ideal. Whether you are financing a boat slip or dock with good credit or bad credit, you may want to consider a personal loan, HELOC, or home equity loan. If you have equity in your home you may qualify for a HELOC or home equity loan. These types of secured loans may offer favorable terms but involve more risk for the borrower and usually require some patience. A personal loan usually does not require collateral and can be funded rather quickly. You can apply for a personal loan with a cosigner in most cases. If you have bad credit, a cosigner with good credit may help you get approved and lock in more favorable terms.

Can you finance a boat dock with bad credit?

Boat docks are usually not a necessity. This comes into play when it comes to securing financing. If you don't actually know what your credit score is, you should check your credit before applying for a loan. Who knows, your credit may not be as bad as you thought. Next, you should explore your options and ignore your credit score for a minute. Start with secured loans. If you are building a boat slip or dock on a property you own, you may be able to use a secured loan such as a home equity loan or HELOC. To qualify though you will need equity in your home and you will need to be willing to borrow against your home. If you have equity, you may also be able to consider a cash-out refinance, which under the right circumstances can make financial sense. If you have bad credit these are three options to consider.

However, homeowners do not always have enough equity in their home to borrow against it. In addition, some homeowners are not willing to risk losing their home. If you default on a secured loan the lender can repossess your home or collateral. Another scenario that a secured loan may not make sense for is an inexpensive boat slip or dock. If you only need to borrow a few thousand dollars, it may not make sense to go through all the hassle of securing a secured loan. A personal loan can be used for boat dock or slip financing. If you have bad credit, you may still qualify for a personal loan.

Can you finance a boat dock with a 600 credit score?

You may be able to finance a boat dock with a 600 credit score. Regardless of the type of loan that you use, lenders will likely consider a variety of factors. If you have a 600 credit score, you will need to have other factors working in your favor. You will want to have a low debt-to-income ratio. You will also want to have healthy cash flow and stable income. Whether your loan is secured by collateral or not, lenders want to feel confident in your ability to repay the loan. While collateral reduces the risk for the lender, they usually would prefer that the borrower just repays the loan as agreed. When a lender has to repossess collateral, it requires time and resources. Of course, they want to get their money back so if they need to repossess collateral, they will. If you default on a secured or unsecured loan, your credit could be severely damaged.

What credit score is needed to finance a boat dock?

The credit score needed to finance a boat dock can vary, depending on the lender and the type of loan that you use. If you plan on using a HELOC, you will want to have 15% to 20% equity in your home.In addition, you will most likely need a credit score 621 or better. If you use a personal loan, you will not need collateral and you may be able to qualify with a credit score around 610. Most lenders on the Acorn Finance platform have a credit score cutoff of 600 or above. As discussed earlier, you will want to have stable income and a low-debt-to-income ratio, especially if your credit is less than perfect. Before choosing a loan type, you should weigh the pros and cons. The amount you need to borrow can have a lot to do with your decision as well. For single-digit boat dock loans, personal loans may be the best option. Secured loans usually involve a hefty load of paperwork and documentation which can consume a lot of time.

Do you need to check credit to get boat dock financing?

While there are certain types of financing such as PayDay loans or Cash Advances that do not require a credit check, you will probably want to steer clear of these options for boat dock financing. In most cases, a boat dock or slip will cost somewhere between $3,677 to $27,464+. This isn't exactly pocket change for most of us. A no credit check loan usually has extremely high interest rates. When you tack on high interest rates to thousands of dollars, it adds up fast. The goal should be to finance your boat dock for the least amount of money possible. While you may be prepared to pay extra to borrow money, you want to minimize the additional cost.

To get prequalified for a personal loan, you may not need a hard credit pull. At Acorn Finance you can check personal loan or home improvement loan offers without impacting your credit score. If you are just curious as to what you qualify for or don't qualify for, Acorn Finance is a great place to start. If you decide to return at a later date, you can pick up where you left off if offers are still valid.

How long can you finance a boat dock for?

Loan terms for boat dock financing can vary depending on the lender, loan amount, and the type of loan. If you have bad credit, you may only qualify for a short term. If you have good credit, you may have more options when it comes to choosing a term. You may find personal loans with terms up to 12 years, but these types of terms are usually reserved for high loan amounts and good credit borrowers. Keep in mind that a longer term may get you a lower payment but in the long run, it may cost you more money.

Closing Thoughts

In conclusion, anytime you can own something versus rent something you should choose ownership if possible. However, in many desirable boating locations, it's not possible to own or build your own dock or slip. If it is possible to build your own boat dock you should consider using a personal loan to finance the project.