When buying a used boat from a private seller instead of a dealership, one of the most important questions is: what banks do private party loans? This type of financing is slightly more complex than dealership loans, but it opens up a world of opportunities for buyers looking for pre-owned vessels sold directly by individuals.
At Float Finance, we specialize in guiding buyers through private party transactions—making sure the loan is structured properly, documents are secured, and the entire process is stress-free.
What Is a Private Party Loan?
A private party loan allows a buyer to finance the purchase of a boat directly from an individual seller rather than a business or dealership. These loans typically require more documentation and coordination since there’s no dealer facilitating the transfer of title or managing the lending paperwork.
Whether you’re buying through Boat Trader, Facebook Marketplace, or a personal connection, a private party loan can make the transaction more affordable and manageable.
What Types of Banks Offer Private Party Loans?
1. Credit Unions
Credit unions are often flexible and may offer favorable interest rates for private party loans, especially to existing members. Some regional credit unions are more accustomed to financing pre-owned boats than national lenders, and they may consider older vessels or unique use cases.
However, working with credit unions often involves more manual steps, and not all of them are well-versed in marine lending. We frequently help clients compare credit union quotes with the customized solutions we offer—saving time and avoiding delays.
2. Traditional Banks
Large banks such as U.S. Bank and Wells Fargo sometimes offer private party boat loans, though their programs tend to be conservative. They may limit financing based on:
- The boat’s age or condition
- Whether the boat meets specific valuation requirements
- Regional lending restrictions
These banks also typically require additional verification, including clean title status and pre-funding inspections. While it’s possible to go through them directly, borrowers often find that our process is faster, easier, and more tailored to marine transactions.
3. Marine Lending Specialists (Like Us)
Unlike traditional institutions, our focus is entirely on marine financing—and private party loans are one of our specialties. We work with a network of national and regional lenders behind the scenes and handle all the logistics:
- Coordinating with sellers
- Managing lien payoffs
- Ensuring proper title transfer
- Supporting insurance, survey, and documentation requirements
Rather than shopping around to banks with limited programs, working with us allows you to access hand-picked marine lenders with experience in boats of all types, sizes, and ages. Our boat financing page explains how we simplify this for every buyer.
What the Loan Process Looks Like
Here’s what you can expect when financing a boat from a private seller:
- Seller-provided bill of sale and full contact details
- Verification of clean title (or lien payoff instructions if the boat has a loan)
- Marine survey or inspection for older or high-value boats
- Insurance documentation before funding
- Proof of registration or Coast Guard documentation, if applicable
We handle each of these steps with you, ensuring nothing falls through the cracks.
How Loan Terms May Differ
Private party loans can differ from traditional dealer financing in several ways:
- Slightly shorter loan terms, especially for older boats
- More conservative loan-to-value ratios
- Stricter documentation requirements
- Higher scrutiny on boat condition
Still, with our guidance and lender relationships, buyers are often surprised how seamless the process becomes—even when buying from out of state.
Why Buyers Work with Us Instead of Their Bank
While many banks and credit unions offer boat loans in theory, not all of them understand the specifics of private party transactions. Delays, document issues, and last-minute changes are common.
At Float Finance, we’ve built a system that eliminates these pain points. We:
- Pre-qualify buyers without affecting credit
- Explain all costs upfront (including taxes, titling, and inspection)
- Secure funding quickly
- Coordinate with the seller and guide them through what they need to provide
- Ensure regulatory compliance in all 50 states
It’s why private party buyers—from first-time owners to seasoned boaters—choose us.
Conclusion
So, what banks do private party loans? Some credit unions and national banks do—but working with a marine lending specialist ensures the process goes smoothly, the loan fits your needs, and the transaction is handled professionally from start to finish.
If you’re ready to purchase a used boat from a private seller, we’re ready to help with transparent financing solutions, knowledgeable support, and fast approvals. It’s what we do—so your next boat doesn’t have to come with stress or guesswork.