Boat & RV Lending FAQs

Why choose Marine Banking for your Boat or RV Loan?

Marine Banking Services has been originating boat loans for over 24 years and offers its loan services for all your recreational vehicle purchase and refinancing needs. We operate as a full-service marine and RV financial service provider. We will package your loan request and arrange financing with various lenders around the country at the most competitive rates and terms available. MBS will coordinate Coast Guard Documentation for marine vehicles as well as all appropriate insurance arrangements.

What is the extent of your experience in Boat Lending?

The company president has over 28 years of yacht financing experience with intimate knowledge of the marine marketplace and is a member of the National Marine Lenders Association; a group of marine lender banks providing a forum for the promotion and advancement of qualified marine lending opportunities for the industry and consumer. Our primary operations are in the Great Lakes based just outside of Chicago, Il. However, we offer our services in all regions of the U.S.

What programs or terms are available?

Loan programs and terms can be custom tailored to fit your particular need and financial profile. Our bank rates and terms are a composite of the most competitive in the industry. We have the knowledge to properly prepare and present your loan request for the vessel or RV you are purchasing, whether new or used. MBS can also re-finance your existing loan. We also have numerous contacts and work closely with several dealers and brokers in the Great lakes market and other markets around the country. We can also help you locate a qualified surveyor for your used boat purchase as well as recommend specialists in marine insurance to assure your vessel is properly and adequately covered for all perils.

What is the advantage of financing vs. paying cash?

A boat or RV is a luxury item. Liquid cash assets can be invested in one of many investment vehicles available to the average person, or put to much better use such as: emergency expenses, college tuition, medical expenses, just to name a few. Keep your cash liquid and use the funding available through our lending partners. Your funds remain liquid for emergencies or other expenses as needed.

Can I deduct the interest expense on my boat or RV loan?

Under IRC section 163 (h)(2) a taxpayer may deduct interest on a qualified residence, which is defined as a principal residence and one other residence owned by the taxpayer. In accordance with the IRC section (h)(4), a boat or RV will be considered a qualified residence if it is one of two residences chosen by the taxpayer for the purpose of deductibility. This holds true as long as it provides living accommodations and the owner spends at least 14 days per year on the vehicle. Although, we do highly recommend you consult with your accountant or tax advisor before making any decisions to deduct interest expenses since we do not offer tax advice or interpretation of tax laws.

Why not borrow against my home which I own free and clear?

Why tie up your home's equity, which could be there for any unforeseen emergency or medical expenses, or even education costs? Additionally, home mortgage interest is only deductible for the home purchase. Home equity loan interest is only deductible for home repairs or the purchase of another home and not a boat purchase. Closing costs, appraisals, and title costs can also add up.

How large of a loan can I qualify for?

We can normally let you know within minutes after asking a few key questions.

What are the down payment requirements?

Typically 10% to 20% depending on the amount borrowed and the term requested.