Services

Lending Associates makes navigating the loan process a snap.

Lending Associates specializes in yacht, RV and aircraft financing. We work with a large network of quality lenders in the marine and RV industries to ensure the most competitive boat loan rates and RV loan rates. We can also assist you with refinancing your existing loan.

Contact us today and our loan specialists will work with you to design a financing program to best meet your needs. With years of experience, our team of experts are available to answer your questions throughout the process. We match the best lender to your specific financing needs without shopping your credit. Privacy and confidentiality is our number one priority.

pre-approval

Pre-Approval

Financial Information
gathering stage

  1. Basic information gathering about your potential transaction
  2. We help you organize the required financial information for the banks
  3. Our staff will internally review and compare with our extensive lender pool guidelines

Approval

Approval

Boat selection &
bank approval

  1. Establish bank book value and select the optimal lender to fit your requirements
  2. We submit the request to the bank for approval and track it’s progress in underwriting
  3. We receive the approval terms and conditions from the bank and close whenever you’re ready

Closing

Closing

documents signing
and funding

  1. We engage a title service to perform the lien searches and prepare the transfer ownership documents for you.
  2. We prepare all of the bank’s loan documents locally, so there’s no waiting on the bank
  3. Most importantly, we coordinate with your seller or broker to ensure a smooth closing process.

What are some of the benefits of financing with a marine specific lender?

  • Longer Terms: Typically we are able to amortize loans up to 20 years, which also means lower monthly payments.

  • Faster Decisions: Because the marine portfolio banks are familiar with the product, there is no time lost in understanding what they are lending on.

  • Lower Down Payments: Most banks require 25% down on big-ticket items. Our lenders offer products requiring as little as 15% cash, or trade equity in the transaction.

  • Title and Registration: We will walk you through the ownership transfer process with a Marine Title Specialist.

Why consider the pre-approval process?

  1. When you take the initiative to get pre-approved, you are positioning yourself to be a well qualified buyer to sellers. Once you receive your pre-approval from Lending Associates, you will have the flexibility of a cash buyer since you know how much you are approved for. This in-hand tool gives you the ability to negotiate as confidently as the cash buyer.
  2. Another great reason to get pre-approved is locking in today’s interest rates. In an ever changing market and economy, you can establish a time frame that your loan approval will guaranty your rate. Most approvals are good for 30 days from the time of application.
  3. Finally, one of the most important reasons to get pre-qualified is to determine your credit limits. Many finance companies are only interested in how much they can loan you regardless of your ability to repay. This is not a long-term strategy that is practiced at Lending Associates.

Tax Deductibility of Interest on Boat Loans:

Internal Revenue Code (IRC) section 163 (h) (2) states that a taxpayer may deduct any qualified interest on a qualified residence. Qualified residences are defined as a principal residence (e.g., a primary home) and one other residence (including second homes) owned by the taxpayer for the purpose of deductibility for the tax year. IRC section 163(h)(3) defines qualified residence interest as any interest paid or accrued during the tax year on acquisition or home equity indebtedness with respect to any qualified residence of the taxpayer.

According to IRC section 163(h) (4), a boat will be considered a qualified residence if it is one of the two residences chosen by the taxpayer for purposes of deductibility in the tax year. A qualified residence must have basic living accommodations including sleeping space (berth), a toilet (head), and cooking facilities (galley). If the boat is also chartered, the taxpayer will have to use the boat for personal purposes for either more than 14 days or 10% of the number of days during the year the boat was actually rented, to qualify for the interest deduction in accordance with IRC section 280A(d)(1).

Form 1098, issued by lenders, is not necessary in order to claim the qualified interest deduction. In accordance with IRS instructions for Schedule A, form 1040, if the taxpayer does not receive form 1098, deductible mortgage interest should be reported in line 11 instead of line 10 on Schedule A.

Borrowing against an unencumbered home to purchase a “second home boat” has limitations. Home mortgage interest deduction is limited to interest paid on mortgage debt used to purchase or improve a residence, or to refinance the remaining balance on a purchase or improvement. If the money isn’t used for the home, the interest expense does not qualify for the deduction.

Interest paid on a home equity loan to buy a boat also may not be deductible. Home mortgage interest deduction is limited to interest paid on home equity loans up to $100,000. By using a home equity loan, you may limit the amount of interest that is deductible, if a boat loan balance exceeds $100,000.

Borrowing against a stock portfolio to purchase a boat creates complications in regard to interest deductibility. Second home mortgage interest deduction is limited to interest paid on second homes that are secured by that second home. A written collateral agreement (security agreement) from a broker indicating the boat as collateral is something brokers are not inclined to provide.