Pontoon & Deck Boat Magazine — January 2018

22 Pontoon^ & Deck Boat January^2018 http://www.pdbmagazine.com

dealers have inside financing with whom

they like to work. If the purchase is

more than $75,000, they’ll probably ask

to see proof of income.

After completing the credit

application, the dealer sends it to the

bank. Usually, the bank wants your

credit score somewhere over 720;

however, there are companies who will

give you a loan under that, but your rate

will go up substantially. They are also

looking for a DTI (Debt to Income) level

of 45 percent or less.

If your credit is high enough, your

DTI is low enough and you have enough

for the down payment, the bank should

send an approval right away.

From there, you can go into the

dealer, sign the paperwork and pick up

your new pontoon.

Ta-da! You’re a brand new boat

owner.

How Easy?

Thornsberry pointed out that before

the recession, banks were willing

to finance 100 percent of pontoon

purchases including taxes. It wasn’t

long before they realized when people

couldn’t pay their loans, the boat they

financed 100 percent was no longer

worth even 80 percent of the original

value. Everyone lost.

Since then, the banks have backed

away from that sort of high-risk

financing. Although it’s easier to get a

loan now than is has been in the last 10

years, the banks are still fairly cautious.

“It’s certainly better now than it was

in 2010,” said Thornsberry, “but there

are still a lot of restrictions that weren’t

there 15 years ago before the crash.”

Things To Keep in Mind

You’ll make your life a whole lot

easier if you begin keeping track of

things that could affect your eligibility

for loans before you apply for one. That

being said, you probably know what

those things are: credit and job history.

I know you’ve heard it all before,

but I’ll say it again: credit is a big deal.

Banks want to see that you’ve already

financed larger-ticket items so they can

trust you to make your future payments.

Thornsberry added that they generally

don’t like doing boat financing with

anyone who doesn’t already own a home.

Helpful Resources

The Boat Broker, Inc.

928-453-8833

http://www.theboatbroker.com

Formula Boats of Missouri

573-302-8000

http://www.formulaboatsmo.com

Newcoast Financial Services

866-639-2627

http://www.newcoast.com

Starcraft Marine

http://www.starcraftmarine.com