Are you a vessel owner considering a mortgage for your craft? If so, then you may want to consider obtaining a preferred ship’s mortgage. A preferred ship’s mortgage is one of the most popular types of loan when it comes to vessels. To be eligible for this mortgage, your vessel has to meet certain criteria. Here at our Vessel Registrar Center, you’ll find the forms you need to not just apply for one of these mortgages, but you’ll also find the forms for when you’ve satisfied them, too.
Brief Overview of These Kinds of Mortgages
These mortgages are an important tool that can help ship owners and lenders manage and mitigate their financial risks. Unlike traditional mortgages, these types of mortgages are specifically designed for ships and have specific requirements that must be met in order to be considered valid. When a preferred ship’s mortgage is issued, it provides a number of benefits to the borrower, including access to more affordable financing, better terms and conditions, and increased security against default. For lenders, preferred ship’s mortgages provide a level of protection against potential losses, making it easier to extend credit to shipowners who may otherwise not be eligible for traditional loans.
How Vessel Documentation Can Help Secure Your Preferred Ship’s Mortgage
Simply put, you can’t be eligible for this mortgage without it. Should your vessel lack USCG documentation, you will not be able to secure this mortgage. That said, your vessel very well may be eligible for this documentation. For example, if your vessel measures at least five net tons and is wholly owned by an American citizen, then you can document your vessel. Keep in mind: “net tonnage” measures volume and not weight. So, to measure this, see if your vessel is at least 25 feet long. If it is, then it’s almost assuredly five net tons.
Before You Apply for this Mortgage
Here at the National Documentation Portal, we provide access to all of the forms that you might need for the course of owning your vessel. That means we have the forms you’ll need to document your vessel, renew that documentation, apply for this mortgage, and so forth. But, we aren’t maritime attorneys. Before you apply for this mortgage, we do recommend that you talk to a professional. That way, you can know definitively it’s the right course of action for you and your vessel.
Once You’ve Paid Off the First Preferred Ship’s Mortgage
There’s an old saying: “The best days of boat ownership are the day you buy it and the day you sell it.” That very well may be true, but another great day is the day you pay off your ship’s mortgage. When you do that, we have the forms you’ll need to let the USCG know. In the event you do sell your documented vessel, we have the Transfer/Exchange forms, too. To see everything we offer, click here.