Can I Finance a Boat From a Private Seller?

Start by sending me the listing

You don’t need to have every detail figured out before you call. Send me what you’re looking at, tell me what you’re trying to do, and we’ll start there. Or ask ScottBot.

The year, make, model, price, location, and engine information help. So does knowing whether the trailer and other equipment are included. Buying from your neighbor doesn’t make those details any less important.

Who manages a private-party closing?

When you work with us, I work with our processors, closers, and other staff to manage the financing and closing. If a broker is involved, they help too—often on the seller’s side.

You and the seller still have documents to provide and decisions to make. But you should not have to figure out the entire closing process yourselves.

The asking price does not set the loan amount

A private seller’s asking price is not the wholesale value a lender uses to determine the loan amount. We need to evaluate that value, the program’s permitted advance, and your qualifications. Your cash is the full purchase cost—the agreed price plus taxes and fees—minus the final approved loan, minus any deposit that's credited. Count each one once. Until we know the taxes and fees, that number isn't final.

Read how boat down payments really work before settling on a percentage.

Before you put down a deposit

Tell me whether the seller still owes money on the boat. When there is a payoff, our process is for the entire deposit to come through us so we can coordinate it with the closing. The rare exception is a seller who requires something directly to hold the boat. Talk with me before making that arrangement.

Don’t assume money already handed to the seller will automatically fit the lender’s closing requirements. We need to know about it.

Put the deal in a purchase agreement

A purchase agreement puts the price, included equipment, deposit, and agreed conditions in writing. Discuss how financing, inspections, survey, sea trial, and cancellation will be handled before signing or paying.

A purchase agreement is available in the downloads section of YourBoatMoney.com. Other forms are available online, too, but make sure the agreement fits your transaction. A purchase agreement and the bill of sale used to document the sale serve different purposes.

Think “Mortgage Lite” for closing and funding

Let’s talk before you promise the seller you’ll be there Friday with the money. Approval, closing, funding, and permission to release the boat are different milestones.

Our closing department prepares the paperwork for you and the seller. You both sign and return it, and the required originals have to be received and reviewed before the file goes into the funding queue. See what happens after you sign.

We need to work through the ownership documents, any payoff, lender conditions, and insurance. A survey or other inspection may also be required. Which steps apply depends on the boat and the program. We’ll explain what your deal needs.

Your next step

Send me the listing and your main question. Start at YourBoatMoney’s process page, or ask ScottBot. Use our designated secure application or document channel for sensitive financial information.

Educational information, not a loan offer or guarantee of approval. Requirements depend on the lender and transaction.