Written by Jenn Jones | Edited by Katie Lowery | Reviewed March 1, 2023
| Company | Starting APR | Terms (months) | Loan amounts | Best for…. | |
|---|---|---|---|---|---|
 | 5.99% | Up to 240 | $10,000 -$10,000,000 | Overall low rates | See Offers |
 | 5.99% (w/autopay and excellent credit) | Up to 144 | $5,000 -$100,000 | Any type of watercraft | See Offers |
 | 6.49% | Up to 240 | $10,000 -$1,500,000 | Quick funding | See Offers |
Ready to set sail on a new adventure? Get financing from $5,000 to $10 million for your dream watercraft and find your best boat loan rate.
We looked at hundreds of successful boat loan offers with our most popular partners on the LendingTree platform to come up with these top lenders for boat loans. Click here to see how we determined the best boat loans.
Borrowers on the LendingTree platform received the lowest average annual percentage rates (APR) from this online lender in the first half of 2022. And when you apply, an agent is assigned to guide you through the process so you’re not left scratching your head by yourself.
All of LightStream’s loans are unsecured, meaning there are no restrictions on the type of boat you want to purchase. LightStream was, by far, the most popular boat lender on LendingTree in the first half of 2022. Its boat loan terms only go up to 120 months (10 years) though, so be prepared for higher monthly payments if you want to finance a large amount.
*Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 5.99% APR with a term of 3 years would result in 36 monthly payments of $304.17. © 2023 Truist Financial Corporation. Truist, LightStream, and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.
The online marketplace stresses that it processes paperwork efficiently and disburses funds to borrowers quickly so you can get out on the water ASAP. It also offers loan terms up to 240 months (20 years), so you can spread your payments out.
It’s not hard to finance a boat, but you’ll receive more favorable rates and terms if your credit score is 600 or higher. Those with very good credit may qualify for the introductory rates you see in the table above. If your credit isn’t where you want it to be, don’t worry: There are bad credit boat loans for those with scores in the mid-500 range.
Most lenders will check your credit and ask for certain information:
If you’re not sure what your credit score is, you can get your free credit score here and then move forward with applying for your loan.
To get a boat loan, you should check your credit and shop around for a boat and boat loan that will fit within your budget. Lenders consider boats to be luxuries, not necessities, so unless your credit score is relatively high and your debt-to-income ratio relatively low, you may find loan approval difficult or face high rates.
Borrowers with strong credit can expect boat loan interest rates in the 4% to 5% APR range for new and used boats.
Boat financing makes sense if you qualify for a fair rate at terms you prefer. If your credit is poor, you could: Postpone your boat purchase until you’ve had time to improve your credit; buy now and refinance your boat loan once you’ve improved your credit; or pay cash.
Used boats could offer huge savings over new ones. Still, prices can vary considerably, even for similar boat types, model years and history. Use an industry guide like NADAguides to check a boat’s value against the sales price to be sure you’re getting a good deal. Check out our guide on how to get a used boat loan.
You could lease a boat, but beware that boat leasing may be more expensive than boat purchasing. Renting a boat for a shorter period of time may be more cost-effective. Here’s more on boat leasing and alternatives.
You may be able to get a mortgage on a boat if it qualifies as your main home or second home. The IRS defines a home as a property with sleeping, cooking and toilet facilities.
Yes, you could qualify for a boat loan with a 600 FICO Score. As we mentioned earlier, there are bad credit boat loans available, but it may pay off to improve your credit first. To get your best boat loan rates, you usually need a credit score of 720 or above.
Boat loan terms can stretch for as long as 20 years, due to loan amounts that can reach into the millions. But just because you can finance a boat for that long doesn’t mean you should. It’s possible to finance even large amounts for relatively short terms — that said, it might be difficult to find terms for less than two years, even for inexpensive boats. Here’s more on how long you can finance a boat.
Yacht financing is available. However, like any type of financing, borrowers have to qualify for the loan based on their ability to repay it. The average cost of a 100-foot yacht is around $1 million.
Use a boat payment calculator to see what your monthly payments might look like and make sure you’re aiming for a payment that is comfortable for you. Keep in mind that the payments are only part of the ownership costs — you may need to pay for docking, storage, maintenance, fuel, licensing, boating lessons, a towing vehicle, a towing trailer and safety equipment.
Boat loan terms can be as short as two years or as long as 20 years. If you want to buy an inexpensive boat for a shorter term, it’s possible to use a small personal loan that can be repaid over six months or more.
A secured or unsecured personal loan could be a great way to buy a new or used boat, but it’s not the only way. You could instead use a home equity loan or line of credit (HELOC), both of which might have lower rates, but carry the risk of losing your home if you can’t repay the loan.