Another loan dilhema......
 

I am finding similar loan problems with the banks as some of the posts that are on here. The difference is, is that I have credit, but they say it isn't "luxury" loan credit.
Am I just talking to the wrong people?
I only am looking for a 50-60K loan with a credit score of 748, 2 vehicle loaned and paid off, $0 credit card balance, a house in contract, and an nice annual salary. Is there someone that can help me? I have been turned down twice, and I can't understand why.......
Thanks for your time in advance. :-)

I am sure one of the Loan experts will chime in. But yea their is some equation they play for "luxury" items. I lost over a dozen boat sales from people this past year for the exact same stuff. Great credit, had money to put down, but banks just won't loan money. I hate to say it but 800biliontrillion wasted money to bankers hasn't changed a damn thing.

It just doesn't seem to mesh, does it? haha They can loan out 400-500K for housing to anyone who has a name, but when someone that actually pays things back, and is willing to show a paper trail, they turn their backs.....
I am sure this is a lost cause, but I am seriously dumbfounded by it.
Thanks for your imput, Baja

go to your local credit union or bank, you will get better rates anyway throug a credit union.

As for as a luxury ratio, I've never heard of one, not saying some bank hasn't come up with a magic number but the several I have worked for never used anything like that. I will say that you are seeing a return to underwriting closer to the 80's than the free for all credit of the late 90s and 00's. Back then most luxury items were financed by finance companies not banks and rates were significantly higer. My first boat loan was 11% and I had to put 30% down and I got a great term of 7 years on a $22K loan.

As far as $800 billion wasted. I know Wells Fargo for instance just paid $371 million in a dividend to the government for the $25 billion it was forced to take. I think they, along with JP morgan and Goldman would pay the money back today in full if they were allowed but they can't for 5 years.

Have you asked your congress person where these dividends are going? It's interest on your money but the repayments never make the news. Banks go to the hill to explain their use of funds today. When will congress explain what it's doing with the 5% dividend it is getting on these loans?

About $350 billion in TARP money has gone out, that means annually the government gets what $17 billion in dividends off the money? It isn't wealfare, what are they doing with that $17 billion is what I want to know. Maybe they could make some consumer loans off of it.

My credit union only offers a 7 year loan. So, I guess my next option is to go through, maybe, Bank of America. Anyone had any luck through them?
The problem is, I don't want to keep filling out loan apps and getting my credit dinged every single time. At this rate my 748 will be 6. haha

Bank of America does not do performance boat loans anymore!!!!

I should also point out that A+ credit rating for mortgage loans have moved up to 760+ credit scores so in the old world 748 was a good number it's no longer A+ credit (much better than 6 however)

7 years proabably is going to be more common for boats for a while especially under $50K. It's a new world. When Key, National City, BOA and the rest got out of retail boat lending it puts the hurt on "luxury" purchases, even for good people.

Good luck on your search, if you find decent terms I am sure others would like to know where to go for financing.

Thanks for the heads up. I will try to find him and give him a shout.

Personal experiance THEY do not!!! And they NO longer have my money in their Bank!! Thankyou very much.

I second this. I've seen many clients who are buying boats right now using local credit unions. I also spoke to the VP of Union Bank of Arizona and she said they will lend on any type of boat, where some of the bigger banks won't lend on performance boats. It's worth a try!

Talkin with Kyle now, so, hopefully, I won't have to hit any other local banks. haha Will keep you posted in case any of you are having the same dilhema.

I just overnighted the paperwork back to Chesapeake finanicail. Bought a 2000 Baja Outlaw 33 for 50k. Putting down $4900 and its 8.99 for 15 years. They put me with Wilmington Trust. I will share the whole experience once I close this week on the boat but I would definetly try them as he got the deal done.

Good to hear Brian,
Thanks for the heads up. Keep me posted, I am definately interested in what happens. Best of luck to you.

Try State Farm insurance they also do bank loans as I have sent some of my boat buying customer over to them. They have been loaning to good credit scores. it has been tough to get any loans for boats done. Most of my loans are for under 35K. Hope this helps.

Dave Patnaude @ Essex Credit

www.essexcredit.com

Wilmington Trust is the biggest Joke of a Bank to deal with, I know from alot of experience!!!! I cant believe you got a boat loan out of them, its nothing personal towards you, they just recently screwed me over, Who did the loan??

I never had any experience with them...I'm from PA. They approved it in a couple hours and only requested the survey,and income verification. Credit and income are extremely strong, they are loaning 50 on a 50k purchase price....I'm putting down 4900 in fees and taxes.(coast guard documentation, Gap ins. etc.). Like I said, they sent all the contracts and documents which I just overnighted back. Pretty much a done deal.

They would only approve 60% of value due to "high performance"......780 credit, income can be verified, 15% debt ratio.

Try Melaine Jolles at Scott Financial, thay will do 15% down on a High performance as long as the loan is over 50K Banks are very tough right now for Performance boat!!! Trust me.

Would it be possible for you to save for a year or two and just pay cash? Its really the best way...........

Who are you speaking too???????????

Appearantly everyone.....we should all only pay cash, because some random internet guy told us its the "best" way:rolleyes:.

I finance everything!!! it is a way to write off things and not pay as much every year in taxes, and I keep my money in the bank. You have 2 choice's when you are a business owner, you will pay taxes or interest!!!

I guess in my case, in my 3 years of working since grad school I should have been living like a pauper despite a good salary so I could save for a nice boat!

Instead I bought a house (I wish I had decided to save to pay cash for that "investment" haha) and will also finance a boat, as I'm willing to pay the interest as I grasp the time value of money, and I value the boat now enough to pay it.

I have 2 of those things( houses) but it wont get you a boat loan!!! how is your loan going, I might have some news Friday on mine, it is tough right now!! Credit score, income, and assetts dont matter right now!!!

I can get approved at one place, it just needs to be 2001 or newer, and well under book.

I'm being killed by length of employment (time in grad school, etc means nothing to them now) and debt to income (which would have in the past been fine.)

What kills me on debt to income is it doesn't matter if I'm single, no kids, and very low bills or had 5 kids and tons of bills, still the same damn guideline.:mad:

I'm pretty sure your big problem is lack of documentation as a business owner? What a joke.

YES and NO, it seems to change with every boat I want to but, the banks will give me up to 70K on whatever I want, no matter the year, make or model, or power, but I want a newer boat for around 120K. But the Banks make no sense to me, they will do a 2001 Donzi 28 ZX Scorpion for 60K but not a 2007 Donzi 35ZR for 100K?? with warrenty, it makes no sense to me, and yes I hide alot of income, you have too if you own a business!!!!

try chesapeake financial, like I've said before....he got me into Wilmington trust 50k deal they loaned 50k,8.99% for 15 years.....Then today I get my coast guard docs and with it is a notorized bill of sale for $1 !!! The dmv people said we have to pay .06 in sales tax!!! I couldnt believe it!.

I really dont want to get into me and Wilmington Trust, I have banked with them for over 10 Years, I run all my Business Accounts thru them!! and my Credit Card processing!, They told me no after all the years I have banked with them, I am in the process of switching accounts right now from Wilmington trust to PNC because of what they did to me!!!!

They make no sense at all, that's for sure, but I'm sure you'll find the right deal. Anyone industrious enough to afford the boat will find the financing.:drink:

Oh, and quite trying to buy up all the "affordable" boats, leave those for us poor folks, haha. I'm curious as to what you're gonna know about next, as you're always a step ahead on what's coming available. I'm waiting for you to show a pic of some awesome Vice you just bought.:ernaehrung004:

Oh, and if you didn't see over on SOS, could you shoot me the story on the Cad Mystique you mentioned?

Good job on moving everything. At least you can make them pay somewhat. It sounds like they screwed you good. Most of the places I talked to were like "try your current bank, they should help you since you have great credit, blah, blah, blah", and it was true, the CU that approved at 8.75 for me is the one I've used twice for truck loans. You're doing way more business, and that bank should have taken care of you.

Thanks, yes I keep getting great deals on great boats, but if the banks wont do a loan it does not mean anything!!! The banks are punishing good people for all the bad people they gave loans too!!!! It is just really tough right now !!!

I know I didn't spend as much as you guys are spending, but I did a 20K loan at a local credit union (7K more than the asking price of the boat), I have a 750 credit score, about 30-35% debt to income ratio. I filled out an online app, and received an email saying I was pre-approved, pending I could prove what I put down.

Guy called me in the morning and just asked a few questions about the boat/trailer. I had a survey on the boat done, but they never asked for it, or even talked about it, no income verification, no down payment, qualified super preferred @ 6.99%. Took it for 60 months and will probably pay it off in 2.

Lender was Michigan First Credit Union (www.michiganfirst.com)

Now on another note, as everyone is saying, banks are very hard to get money from, I also filled out an online app, and I was denied for that loan.... Tier 1 at the CU, and denied at the bank...

Economy definitely hurtin' right now.

I hear ya WMF.... it's either hide as much as you can..or send it into Uncle Sam!!! I'm in the same boat as you!

That's funny you used them. I was "approved" when I applied on the phone for their best rates.....and then got a call from the underwriter on Monday. I have a slightly higher credit score, but a worse debt to income. The excuse the jerk-off there gave me was "we aren't comfortable with that amount ($50K) for your first boat!". He went on to say since I haven't been making a boat payment that size he wasn't sure I could, despite me being within their damn guidelines. I wonder how I started paying my first mortgage without "experience" which is a hell of a lot more than the boat. This guy thinks he's my mother and can tell me what my first boat should cost. Needless to say, I was pretty damn pissed.

All I can tell you from what I have gone thru this year trying to get another High performance boat is

Debt to income cant exceed 42% and that includes the boat loan!!
Credit Score of 740 and up
Cash in bank close to the value of the boat!!
Great income!!
Major past Credit history , like boats, houses, cars, trucks, property.
And the boat must be newer with low HP, no racing motors!!!

Value of boat does not matter!!

I have all this stuff covered, but I am still getting jerked around!!! I am sure thier are some dealers out thier that could chime in and tell some great stories about the banks right now!!! I have herd some good one:drink:

Heres one for you....
 

About 2 months ago I looked into buying a new boat, the dealer and I agreed to a price and they got me "approved" through a bank they normally work with. I went to pick it up a month ago and signed all paperwork and paid downpayment of about 25% and took boat home with me. About a week ago, dealer called and said bank needed tax return from me. So I complied and come to find out the bank underwriters say I don't net enough income. Even though I already have the boat along with purchase agreement and titles!.... The dealer has been great to work with all along,but not sure how this is going to go....

I just bought my new boat as well, and I had the same run around from the big lenders since the boat i bought was a bank owned boat, so I got sick of there BS and went to my credit union whom I have done business with for many years and had it approved in under 30 minutes, great rates and much better to deal with. Go to a local lender and stay away from the B.S.

That would really piss me off!!!