Signed in as:
filler@godaddy.com
Catamaran Buying FAQs
Here is a list of the some frequent questions we get asked:
Q: Can we get a loan for a catamaran?
A: Yes absolutely, and just like a home purchase you have to qualify and take the steps with an application and credit check etc. Lenders usually require 20% down payment, we have seen some clients give 10% down. The rates are usually between 4 and 5%. They usually fix the rate for about 20 years, sometimes 15 years. We have some very good lenders that you can speak with to pre-qualify. They do want you to have enough assets or income to pay for the note. And of course you’ll have to have insurance with the lender as the name insured.
Q: Do I need a US address to get a loan?
This is something that clients don’t always think about. Marine Lenders require you to have a home base in the US. Most US banks will not loan on a vessel if the borrower does not have ties to the US, they want you to have an address here, even if it’s a rental property.
Q: What about insurance?
A: Our best answer is to strategize. They don’t only care about sailing experience although it does help a little bit, they do want to know if you’ve ever owned a vessel of that size previously. If you have not then they will require you to get a sign off from the captain. This could take two days or it could take two weeks, timing is unknown as it depends upon your experience and ability to learn the boat. Basically the captain would spend time with you and your own boat teach you the boat. The insurance call that a Captain sign off. It’s required by insurance companies and I would say 3 out of 10 clients have to provide this to their insurer.
Q: What are associated taxes involved?
A:There are two types of taxes. One is an import duty tax and the other is a sales or use tax. They’re two different animals and we discuss these on a case by case basis. An import duty means the Duty is paid because the vessel was built outside of the US.
Sales and use tax depends on where you’re going to be cruising.
Q: Are there any other costs involved with the purchase?
A:Yes, you’ll have to pay for the survey and see trial and Haul Out. Usually the cost is somewhere between $30-$35 a foot for the surveyor and $15-$20 a foot for the yard to haul the boat.
Q: What is the process of obtaining a surveyor?
A: This depends upon where the boat is. Generally speaking, there are a handful of surveyors in Fort Lauderdale that know catamarans. It’s very specialized in that those surveyors only focus on catamarans and therefore their knowledge base is much deeper than just any surveyor.
Q:What is the process involved when the catamaran is located abroad?
A: It depends on where the vessel is, how it is registered, who the owner is and where the closing will be. All this will come in to play with vessels that are located outside of the US.
Q: Where do we register the boat?
A: This depends on where you plan to cruise. How long will you be in the US annually and do you plan to cruise the Caribbean more often than not?
Have a question that is not listed here? Click the button below to submit your own question. We will get back to you as soon as possible with an answer!