Loan experts please chime in

[blazzinbird]

We are upgrading from our current pontoon, and we will need to get a loan.
The wife and I have credit scores in the mid 700's.
Out only debt is:
The family van
Our house
And a rental house while we rent out.

Monthly income for us is around 7k per month. Do you think we would have problems trying to get a pan for 20k?

 

[WIMUSKY]

The rental is probably paying for itself. SO it can be taken out of the equation. Unless you have an astronomical house payment, it doesn't sound like an issue.... Talk to a lending institution.......

 

[blazzinbird]

The rental is probably paying for itself. SO it can be taken out of the equation. Unless you have an astronomical house payment, it doesn't sound like an issue.... Talk to a lending institution.......

My mom is renting it from us and very little profit to us. With a agreement to buy it in x amount of years. It was my first house, and when I got married and we had our 2 kids we bought a bigger house. So really I think the new mortgage company said if we have a renter with a contract it zeros it out for debt.

I guess we're going to apply at usaa for a loan.

 

[ricohman]

I would never take out a loan for a boat.
From now on my bikes and boats are bought with cash or not at all.

 

[WIMUSKY]

I would never take out a loan for a boat.
From now on my bikes and boats are bought with cash or not at all.

That's great and all, but that doesn't help the OP with his question....

 

[roffey]

Here in Canada we can take out a mortgage on a boat, I mean like 25 years to pay back. My feeling on this is, if you wait long enough you will never buy a boat and possibly miss out on adventures of a life time. Me, I love boating like some people like motorcycles. My worst would be to have my boat sit at the dock or in my drive way because I could not put gas into it. It would be a complete waist of and money.

My point is only the OP can decide if they can afford it ... and if its worth it. What is expensive to me may not be for you.

 

[Bayou Dave]

If you are buying the boat from a dealer he may have financing sources available. You say your scores are in the mid 700's. Where did you get that information? From Credit karma or Credit.com? If you did those numbers will be a little different than what a bank will get. But, from your scenario you should have no problem getting a loan on the boat for at least the loan value and possibly more than the loan value.

 

[bruceb58]

Nobody can tell you what you can afford with the info you gave. No idea if that income figure is gross or net. How much your house payment is. How much your car payment is. What you spend on a daily basis. Are you currently maxxing out your 401k?

Personally, I don't get loans on toys.

 

[Sunken Ship]

I would never take out a loan for a boat.

Amen Brother!

I am NOT a loan expert, but banks look at income-to-debt ratios amongst SEVERAL other factors when deciding to give a patron a loan. The rental cannot be used as income until you can show two years of income flow. Flow does not mean what you received. Income minus a percentage for maintenance, minus insurance and taxes, so you might be upside down on flow, making it income deficit. Bruce is correct show you debt-to-income ratio (car=$xxx, house=$xxxx, for EVERYTHING) but it doesn't matter to anyone here unless they are THE banker considering your loan application. Please consider taking $3000-4000 and fixing your old pontoon up a little bit until you have enough cash to buy the boat. If your debt-to-income is good enough then you probably/should have 5-10k in a bank account already. There MUST be a way to get on the water that does not cost $20,000.00 dollars. This community is here to help, I hope you find that is my intention.

 

[airdvr1227]

I chuckle every time I hear someone say "don't take a loan on a boat". I hope you realize that the boat industry would likely collapse if everyone refused to take a loan on a boat.:brick:

 

[roffey]

I chuckle every time I hear someone say "don't take a loan on a boat". I hope you realize that the boat industry would likely collapse if everyone refused to take a loan on a boat.:brick:

.. and depending on the boat you would be crazy to pay cash. Lots of boats out there for 250K plus. Like you say some has to buy new....

 

[bruceb58]

I chuckle every time I hear someone say "don't take a loan on a boat". I hope you realize that the boat industry would likely collapse if everyone refused to take a loan on a boat.:brick:

I will let other people prop of the boat industry. Also, never buy new.

 

[bruceb58]

.. and depending on the boat you would be crazy to pay cash. Lots of boats out there for 250K plus. Like you say some has to buy new....

I have a friend who is getting a custom 75' boat made overseas. Yes....all cash. There are many people that buy boats with all cash in fact I don't have a single friend who owns a boat with a loan on it.

 

[jbcurt00]

Great if you can do it all cash. Doesnt help OP or answer his question.

Only he knows what he can afford, and perhaps thats getting a loan on a boat.

 

[roffey]

I can tell this is going to be one of those threads that go on and on. My only point was and still is, only the OP can know if he can afford a boat and if he need a loan. I bought my boat brand new because I was tired of fixing my boat. For a lot of people here fixing is half of the fun, I understand that but its not for everyone.

 

[H20Rat]

I can tell this is going to be one of those threads that go on and on. My only point was and still is, only the OP can know if he can afford a boat and if he need a loan. I bought my boat brand new because I was tired of fixing my boat. For a lot of people here fixing is half of the fun, I understand that but its not for everyone.

Not everything used requires fixing. My 1994 deckboat has been in the shop less than both of the new pontoons on either side of me. I have also put around 5x the number of hours on my boat.

In any case, this question really doesn't need to be here even. None of us are the OP's lending officer, none of us can offer accurate advise, just guesses. I'm in the camp of not buying a toy with credit, I'd much rather have my 1994 boat above than a loan payment. (for the record I'm lucky enough that paying cash for a new boat wouldn't be a problem, and I'm still not going to do it (at least not until the wife figured out what I did)! Depreciation on a boat it insane.)

 

[roffey]

I agree, I paid cash for my boat and have never regretted it. As you stated, I have no idea what expenses the OP has. Only the bank, the Shadow and the op know for sure.

 

[WIMUSKY]

I can tell this is going to be one of those threads that go on and on.

This Topic shouldn't go on and on. The Op already said a couple days ago that he's going to apply for a loan at USAA.

 

[jkust]

Pontoons are probably 80% or more of all the boats on my large lake. They have overtaken the lake. Point is most of the 20k pontoons I see online as I casually shop to add one to the fleet, are of the 50hp variety. Extremely slow. My neighbor on the lake just upgraded from one of the doggy 50hp models up to a 115HP Premier and it tops out at 21mph to which he is disappointed. Unless it is several years old, a 20k pontoon will have a small engine. I don't know if you can finance older boats. The marginally attractive pontoons at the marina up the street from my lake house start at about 50k and the decent but not great ones seem to start at 60K -70k with the good ones but not super high power ones at 100k. Pontoons are in extremely high demand and are priced as such.

 

[bruceb58]

In another thread he said he is buying a 2013 Sweetwater 220sl premium with 115 Mercury 4 stroke. NADA on it with trailer is around $24K so apparently the prices where you live are pretty far off.