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Why was I denied a boat loan?

New Member

Why was I denied a boat loan?

I'm really not sure where to put this, since its technically not auto, so if it's in the wrong spot sorry. Ok several things, my husband and I were denied a boat loan and I want a strait answer as to why, so that I know what needs to be fixed for the future. my exquifax score here is a 726, when pulled by the dealer it was a 695, my husbands was a 621. He essentially has no credit, but I'm a stay at home mom so I have no income, which is why he was the main and I was the co signer. The lona amount was for 60,000. On my credit I have 2 vehicles and 3 cards all in good standing with no late payments. My husband only had one vehicle on his. We both have one medical collection against each of us. We do not have a mortgage, as we paid outright for our home. Our debt to income ratio is less than 20 percent, as my husband makes 160k a year. Nobody will give us a strait answer as to why we were denied. I call the dealer and they say call the credit unions, the credit unions say they can't do anything because it was ran through a dealer. I just need to know why, so that I know what I need to fix. I've lurked on this site for a long time, and thanks to you all I was able to finance a car two years ago!! So I know y'all will be able to tell it to me strait why we can't get a boat. Thank you 😊
Message 1 of 10
9 REPLIES
Valued Contributor

Re: Why was I denied a boat loan?

Whoever declined you credit has to provide you with a reason in writing, I believe.

 

What were the terms?  How much was the boat, what's the boat's actual value, how much was your down payment, what is your DTI?

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Message 2 of 10
New Member

Re: Why was I denied a boat loan?

Ok, well I just found out yesterday that we were denied, so I suppose sometime over the next couple of days that I should be getting a letter then? I stated my amount wrong, the boat is 65,000$ and the loan would have been for 80 percent of that, so 52K. The boat is custom built with a 12 week wait, so I'm going to assume the actual value is what we were going to pay.

 

 

Message 3 of 10
New Member

Re: Why was I denied a boat loan?

Sorry I forgot DTI is less than 5 percent. Our monthly gross is 13K and the only bills we have total less than 2K.

Message 4 of 10
Valued Contributor

Re: Why was I denied a boat loan?

Yeah that's very weird if the LTV was 80% and your husband has solid income.  I would suggest finding a loan yourself versus through the dealer -- do you have a good relationship with a CU yourselves?

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Message 5 of 10
Moderator

Re: Why was I denied a boat loan?

Your best bet by far is to go, as suggested above, to a credit union and ask them about a boat let an.  Hopefully you're already a member of one if you are under some time constraint in getting the boat.

Message 6 of 10
New Member

Re: Why was I denied a boat loan?

Wanted to update, that we did get approved for one yesterday, through our bank. 8.5 for 60months. I'm happy with it. Thank you all for your advice.

Message 7 of 10
Valued Contributor

Re: Why was I denied a boat loan?

Congrats!

 

I am actually leaving town today to go look at a boat for sale!  Happy sailings on your boat when you close that loan and post some pics if it's allowed.

FICO8FICO8Visit my posts:
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570TU
559EQ
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Message 8 of 10
Valued Contributor

Re: Why was I denied a boat loan?

Some of the larger banks ie Bank of America and Chase pre 2006(not sure now)  used to have rec loan department that did RV's and boats you may want to check with them. 

Message 9 of 10
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Valued Contributor

Re: Why was I denied a boat loan?

Boat loans carry higger risk so getting qualiied will be more complicated.  I agree with credit unions are a great option and plan on briniging about 40% but hope to not have to use that amount to get it done.

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Message 10 of 10