financing query

[Justin586]

Hi guys!
i've had a Heyday H22 on order for a year or so. my first boat. Put down 7500 in deposit, total cost approx 105k. I'll probably put down 30% in the next week or two. Boat is due end of this month.
I'm a Uk citizen on an L2 visa and my credit score is 728. Issue is i have no credit history because i've never had house/car debt in the US. i've only been here (in Manhattan) for 2 years.
I got rejected due to lack of credit history but my income is 220k plus bonuses so it's been frustrating.
So, question I have, dear forum, is what are my best options? has anyone been in this position? because I don't know how to get the financing at the moment which means i'd lose the boat end of the month and get my deposit back. which obviously i don't want to have happen! I'm very prudent financially (the irony, while i'm trying to buy a boat!) and I feel like I'm being punished for not having massive debt round my neck!!

anyway, any suggestions on where to look would be really appreciated!!
cheers guys!

 

[fatboyroy]

Do you own a property with equity?

 

[Steve73]

Try these guys: Boat Loans, Boat Financing, Yacht loan

 

[HangOutdoors]

Hi guys!
i've had a Heyday H22 on order for a year or so. my first boat. Put down 7500 in deposit, total cost approx 105k. I'll probably put down 30% in the next week or two. Boat is due end of this month.
I'm a Uk citizen on an L2 visa and my credit score is 728. Issue is i have no credit history because i've never had house/car debt in the US. i've only been here (in Manhattan) for 2 years.
I got rejected due to lack of credit history but my income is 220k plus bonuses so it's been frustrating.
So, question I have, dear forum, is what are my best options? has anyone been in this position? because I don't know how to get the financing at the moment which means i'd lose the boat end of the month and get my deposit back. which obviously i don't want to have happen! I'm very prudent financially (the irony, while i'm trying to buy a boat!) and I feel like I'm being punished for not having massive debt round my neck!!

anyway, any suggestions on where to look would be really appreciated!!
cheers guys!

Unfortunately, the only way to do it is with unconventional financing and they may want up to 50% down. Also the rate will be high. Is your current bank a credit union? If it is not I would recommend going in to talk to a local credit union and also move your money there as welll as your direct deposits from your job. There is a good chance they will give you a better rate and get around the typical underwriting requirements. Understand the credit markets are about to take a pretty good beating with defaults and the lending industry as a whole will pull back lending and tighten guidelines.

Also, open upo a couple few credit cards as well after you secure the boat loan. Once you get 1-2 years of history you can get the best rates on the street.

Also you can do alternative credit reporting through experian, go to their website and check it out. Your rent, utiliteis, phone etc. It will at least establish you a score.

 

[Justin586]

Do you own a property with equity?

i do not. my only property is in Bali, as i spent 8 years in Singapore...

 

[Justin586]

Try these guys: Boat Loans, Boat Financing, Yacht loan

cheers! will give those guys a shout on Monday!

 

[Justin586]

Unfortunately, the only way to do it is with unconventional financing and they may want up to 50% down. Also the rate will be high. Is your current bank a credit union? If it is not I would recommend going in to talk to a local credit union and also move your money there as welll as your direct deposits from your job. There is a good chance they will give you a better rate and get around the typical underwriting requirements. Understand the credit markets are about to take a pretty good beating with defaults and the lending industry as a whole will pull back lending and tighten guidelines.

Also, open upo a couple few credit cards as well after you secure the boat loan. Once you get 1-2 years of history you can get the best rates on the street.

Also you can do alternative credit reporting through experian, go to their website and check it out. Your rent, utiliteis, phone etc. It will at least establish you a score.

That's the thing though Hang, my credit score is 728. i bank with Citi where I have a priority account. It's frustrating because given the income and 100k in bank I feel like I'm the right candidate for a loan. especially given we'd only be looking at 70k, which on a 15 year term is peanuts. I just don't want to mess with my cash flow too much, hence I don't want to put everything down for it.

 

[HangOutdoors]

That the problem. Citi is a pain in the ass, I have never been impressed with them. Go find a local credit union and walk in there. You must have something on your credit for a 728. Credit Unions will do their own thing if it makes sense.

 

[BlkGS]

Check out lightstream. They may work with you, they're pretty good to work with.

With a fairly low credit score of 728, and limited history, that may hurt you. Income is all well and good, but with no real history you could be bluffing or something. If you had an 800 and 15 years of car and home loans, you're a no brainer.

 

[HangOutdoors]

Check out lightstream. They may work with you, they're pretty good to work with.

If there is really no credit history, most of the boat financing companies will steer clear of it. They don't hold their own paper, so they need to be able to include it in their portfolio's as they package up their loans for the market. Plus the more he tries financing and getting denied, with his soft credit history, his scores will start to plummet sharply. Regardless of why he explains the multiple credit pulls, it will still put him in a lower Tier and up jack up the rate. In his situation, I wouldn't screw around with too many credit pulls. Some companies will pull it as an installment loan, some as a general credit inquiry, and there are other types of pull codes. So it won't clump them together while scoring, which will add to the negative matrix scoring.

Just some friendly advice. Each person has to approach as they feel is best.

 

[MikeT29]

Do you have a 401K at work? Those plans often have loan programs available that might be useful. Otherwise do you have an investment account with a brokerage where you can do a margin loan?

 

[AZMark]

Do you have a 401K at work? Those plans often have loan programs available that might be useful. Otherwise do you have an investment account with a brokerage where you can do a margin loan?

That’s how I financed my boat, with 401k. All the interest is paid to myself.
At the OPs income level that wouldn’t be a crazy thing to do.

 

[Bluewater272]

That’s how I financed my boat, with 401k. All the interest is paid to myself.
At the OPs income level that wouldn’t be a crazy thing to do.

Double-edged sword with that. Depending on the length of time OP plans to need to pay it back, could miss out on sizeable appreciation that would make a high interest rate look like a rounding error.

 

[BlkGS]

Double-edged sword with that. Depending on the length of time OP plans to need to pay it back, could miss out on sizeable appreciation that would make a high interest rate look like a rounding error.

On theflip side, if he had done it a year or two ago he'd be way money ahead. And the headwinds that existed for that time frame exist still, many would say even stronger.

 

[Bluewater272]

On theflip side, if he had done it a year or two ago he'd be way money ahead. And the headwinds that existed for that time frame exist still, many would say even stronger.

If you can predict investment performance that consistently, then you wouldn’t need a 401K loan. Time in the market > Timing the market, for mortals like us.

 

[BlkGS]

If you can predict investment performance that consistently, then you wouldn’t need a 401K loan. Time in the market > Timing the market, for mortals like us.

While overall I agree, it didn't take a lot ot see that the market was gonna get hammered. Once the fed stopped propping it up, the current slide is very predictable.