loan question/newbie to forum

[peewee327]

i am a newbie to the forum looking for some helpful guidance any help would be appreciated. i filed chapter seven in july of 1998 and was completed in oct. 1998. my bankruptcy according to equifax will be off of my record on 0ct 19th 2008. i am retired with a monthly income of around $3000.00 a month with no balance on my credit cards (4 cards). my car is paid off which i did 7 months after purchasing (got approved for a 30,000 loan)the vehicle in january of 2007 . my credit score according to equfax is 712 with it still showing my bankruptcy. here is my question i want to start a small business (charter boat fishing) and i will need to take out a loan for the purchase of the boat. my downpayment will most likely be 50% the price of the boat i am looking at with the loan being no more than $100,000 more likely the loan will be around $80,000. i am hoping to purchaase the boat for around $150,000. so in other words i have the ability to put down $75,000 and must take a loan for $75,000. i am a little hesitant to go into negotiations with the boat owner/broker due to the fact that i won't be approved for the loan. i really don't want to be embarrased. i will be up front and tell the broker my finacial background. i am thinking of going to the broker see if i get approved for the max amount i may need(100,000) negotiate the price of the boat and then lower the amount of the loan as needed. has anyone been through this before. what are my chances of getting approved with a bankruptcy. should i just wait a year and hope the boat is still around. this business is my lifelong dream. according to my calculation i am able to afford a loan payment of $1000 a month but want to keep it in the $800 range. i would apply for a 20 year loan. i am sorry if this is long winded but i have been driving myself insane with this for a while. thanks in advance for any help

[HHM]

Get over the embarrassment...they are going to WANT to sell you the boat, and if you have cash in hand (50%), the deal is probably as good as done. The BK is not going to matter, your credit is fine.

The problem is your income. Right now, all you have is $3,000 a month coming in the door. If you put $75,000 down, would you have any other savings? The question the lender is going to ask is, if you had NO customers, could you afford the payment.

Incidentally, would you be living on the boat and have you considered the dock fees.

[dscurlock]

Get over the embarrassment...they are going to WANT to sell you the boat, and if you have cash in hand (50%), the deal is probably as good as done. The BK is not going to matter, your credit is fine.

The problem is your income. Right now, all you have is $3,000 a month coming in the door. If you put $75,000 down, would you have any other savings? The question the lender is going to ask is, if you had NO customers, could you afford the payment.

Incidentally, would you be living on the boat and have you considered the dock fees.

I do not think i would put that much money down on the boat, put down with what you can get away with, save the rest for unforseen operating costs such as getting the business off the ground, fuel costs, insurance premiums, fishing poles/bait, docking fees, etc...then maybe after a year if everything is going good, then pay down the loan...

if you put most of your cash down on the boat, then you may leave yourself open for costs that may arise and you may not have the money to take care of business.

you can always try to get approved, if you are turned down, then its nothing to be esmbarrassed
about, its life...and if thats the case, you have a year to continue to save your $$$ for your business,
and continue your fishing plans, and if the boat is no longer avail, then find another, do some
more searching, you may even find a better deal in a year...i have to say, if you wait
another year and your score gets better, you sure will have a damn good interest rate...

[peewee327]

ok more info about me. my monthly payments right now is rent 400.00, i have a sweet deal the women who owns the house is awy for 7 months out of the year so i watch/take care of the house while she is gone.and cell phone other than that it's food and gas for the car. i am not married and have no kids which is a big savbings right there. i have accumalated my fishing equipment over the years so i am no need to make a major purchase on equipment. i am in the process of getting an insurance quote and docking and storage fees will be covered by a variable supplement check of $9300 i get every december. fuel costs get passed on to the customer in the price of the charter. and yes if i get no customers i will be able to afford a $800 a month payment. i thought of putting less down but of course my monthly nut would be more. if i put 75000 it would leave me with about 25,000 left in savings. my only fear is something major going wrong with the motors with the first 2-3 years then i would be up s*its creek without a paddle. of course the boat and motors will be surveyed before purchasing but like in life...there are no gaurantees. i would not be living on the boat. is it just me or such decisions in life so difficult and stressful? DSURLOCK, what do you mean by paying down the loan?

[HHM]

Paying down the loan simply means making an "overpayment". So if your regular monthly payment is $800 per month, and lets say you had a good year, you decide to pay $10,000 in one month, by doing so, you will "pay down" the principal on the loan.

Sounds like you have taken account of many of the hard costs, and I am sure you aware there will probably be some marketing costs which can vary.

I too would suggest trying to hold back as much cash as possible. Don't walk in to the dealership and say you have $75K, play the negotiation game...AND don't worry about the BK. You still might get a good deal with 25% down, and then you have that cash in reserve and if needed, can dip into it to make the higher monthly payment as needed.

[peewee327]

thanks for the info guys i will let you know how it all plays out. thanks again

[peewee327]

just an update for the forumn i was approved for a loan of $81,000 wa approved in about 5 minutes. one thing though my scores varied widely amongst the 3 credit bureaus . from 703 with equifax 739 with transunion and 730 with experian. the bank that i got the loan from uses equifax which they said is the mos thourough. but anyhow, was approved and now i am starting the process of getting the boat and motors surveyed. business will be up and running for spring/summer/fall of 2008 barring anything major with the survey. again thanks to all for given me the incentive to go for it.