For your edification
In an effort to serve you quickly, we compiled the questions we receive most often, with the hope of providing the information necessary to move closer to your dreams of a life on the water. If your question remains unanswered, please contact us so that our team of boat financing experts can assist.
Who is LH-Finance ?
LH-Finance, or L’Hermione Finance, is named after The Hermione, a Concorde-class frigate of the French Navy. She became famous when she ferried General Lafayette to the United States in 1780 for support to the rebels in the American Revolutionary War. The Hermione helped bring liberty and independence to the United States.
LH‐Finance, the Marine division of United Bank of Glastonbury, a $6.3 billion bank based in Glastonbury (CT), offers both retail solutions to customers and wholesale financing to yacht manufacturers and their dealer network.
With its 12-member experienced international team dedicated to marine financing based in Baltimore, Maryland, LH‐Finance is uniquely positioned to provide exceptional customer service through a combination of partnerships with premium multinational brands, industry expertise, innovative products and competitive rates.
Why should I consider LH-Finance if I already have a relationship with my local bank/ credit union ?
With our experienced team dedicated to marine financing, we offer competitive terms, fast credit decisions and trade-in offers. We also allow tax and marine accessories to be included in the loan amount. At LH-Finance, we never charge prepayment penalties or processing fees. We also offer innovative and unique banking products tailored to your needs. Finally, as an LH-Finance customer, you are now also a member of the LH-Finance VIP Concierge Club powered by Marinalife, with access to amazing free services during two years.
Can I refinance my existing boat loan with LH-Finance?
Yes, you can refinance a boat loan with LH-Finance. By doing so, you can save some money because when your credit improves or interest rates drop, you may be eligible for a better interest rate on your boat.
Should I seek pre-approval for a boat loan before beginning my search or attending a boat show ?
Obtaining a pre-approval letter from a lender before you go a dealer or a boat show, demonstrates you are serious about buying and provides leverage to speed up the process. Your loan will not start until you purchase your boat and finalize your actual loan amount. A pre-approval letter shows you what you can spend up front, so choosing your boat will be much easier and the process will be smoother and quicker.
What is the oldest boat I can finance?
LH-Finance will consider up to 30-year-old boats on an exception basis. All used boats will require a survey conducted by an LH-Finance approved surveyor.
How much should I plan to put down on a new or used boat?
Typically, the minimum down payment requirements are 20% for a new or used boat. But contact us to discuss other down payments.
What do I need to do to finance my boat as a second home, and what are the advantages and disadvantages?
Interest on a boat loan may be tax-deductible under the “second home” deduction if the boat includes a berth, head and galley (i.e. at least a bedroom, bathroom and equipped kitchen). Check with your CPA first to make sure your boat fits into this category.
When do I need to have a survey on a boat I am purchasing?
Survey requirements are at the discretion of LH-Finance; typically a survey is required on a used vessel older than one year.
When buying a boat, how does the approval process work?
When you apply online or fill in your application form and send it to info@LH-Finance.com with all the required documents (pay stubs, personal income tax returns, proof of liquid assets, etc.), our underwriting team analyzes your application and will send you an approval decision within 24 hours, provided all required documents are received.
What are the advantages and disadvantages related to financing a boat to be owned by a partnership?
If you transfer your boat into an LLC, it can provide liability protection, tax shelter in states that have high sales tax rates and leverage to obtain greater tax deductions. Check with your CPA before buying your boat as a partnership.