Down Payment

• Purchasing a boat is considered to be a luxury purchase instead of a necessity. Because of this, lenders require you to have a larger down payment than you normally would with a car loan, for example. Depending on the lender, you may be required to come up with as much as 20 percent of the purchase price. Some lenders may be willing to finance your boat with as little as 10 percent down, but finding deals with less of a down payment can be difficult.
  
  

Credit History

• When applying for a boat loan, you will also have to be able to show the lender that you are worthy of credit. Each lender will have different criteria when it comes to determining how high your credit score must be. As a general rule, you should plan on having a credit score in the 600s or higher to qualify for a loan. Your past payment history will play a role in determining whether you qualify.
  
  

Income Verification

• In addition to looking at your credit score, the lender will also want to verify your income. The lender will use a debt-to-income ratio to determine if you have a sufficient amount of income to handle your payments. Some lenders have certain net worth requirements for borrowers as well. The amount of income that you must have will depend on how big of a loan you are trying to take out.
  
  

Appraisal

• Besides looking at your personal credit and income, the lender will also want to pay attention to the boat that you are trying to buy. Most lenders will require an appraisal of the boat before they will consider lending against it. This ensures that the lender is not investing in a boat that is significantly undervalued compared to similar boats in the market. The lender wants to know that he can foreclose on something of value if you do not make the payments.