Understanding the Preferred Ship Mortgage in the USA

Do you have an eye on a vessel that you’d like to buy, but you aren’t sure if you’ll be able to afford it? Would you like to get financing for a vessel that you plan on documenting with the Coast Guard? If you’re going to get your vessel documented, you may be eligible for a kind of financing that can be very advantageous to vessel owners like yourself. The Preferred Ship Mortgage is how vessel owners have financed the vessels of their dreams for more than a century now. You can find the forms you need for this right here at our site. 

The History of the Preferred Ship’s Mortgage 

Simply put, this mortgage is, specifically, a mortgage that’s recorded against a United States Coast Guard documented vessel. The word “preferred” doesn’t come from the mortgage rates you could receive with this mortgage (though those may be great indeed) but because this mortgage takes precedence over any and all other liens on the vessel (with some exceptions). While this may sound new to you, it’s actually been around for some time: these mortgages are protected under the Ship’s Mortgage Act of 1920. 

Preferred Ship Mortgage

What You Need to Get One 

Many vessel owners think that, when they purchase a vessel, they can simply just apply for this mortgage. That’s not the case. You actually have to get a Certificate of Documentation, get your vessel documented with the Coast Guard, and so forth. Without that, it’s impossible to get this mortgage. No lender will give you the financing unless your vessel is documented. At our site, you can find everything that you need to be able to get your vessel documented. Then, you can apply for the mortgage through our site, too. 

How It Can Help as Well as Other Forms We Offer 

We called our site “The Maritime Documentation Center,” and not the “Maritime Accounting Center.” We can’t tell you whether or not a mortgage is right for your needs or that of your vessel. What we can do is to make it easier to apply for this mortgage. At our site, you can find this among the many others that we offer. No matter where you are, or what kind of device you’re viewing our site on, if you have an internet connection, then you can apply for this mortgage from anywhere. 

After the Preferred Ship Mortgage Has Been Paid Off 

Perhaps the oldest joke in boat ownership is: “the two best days you buy it and the day you sell it.” Many, many boat owners would tell you, however, that the other best day of boat ownership is the day that you pay off your mortgage. When that occurs, you can find the forms you’ll need for that, too, right at our site. Don’t worry about rushing through these forms, either. We have a document processing team on staff who can go through them, fixing any tiny errors you may have made. For more information about the preferred ship mortgage, check out everything we offer right here.