Coast Guard documentation and preferred ship mortgages explained
A recreational boat of at least five net tons, wholly owned by U.S. citizens, can be documented with the Coast Guard under 46 CFR 67.5. Documentation lets a lender record a preferred mortgage under 46 U.S.C. 31322. An initial recreational Certificate of Documentation costs $133.00, and mortgages are recorded at $4.00 a page.
Who is eligible
The rule is short. “Any vessel of at least five net tons wholly owned by a citizen or citizens of the United States is eligible for documentation,” and that “includes … vessels used exclusively for recreational purposes” (67.5).
Two related rules frame it:
- Recreational boats are eligible but not required to be documented. The requirement in 67.7 applies to vessels of five net tons or more in the fisheries or coastwise trade.
- “A vessel of less than five net tons is excluded from documentation” (67.9(a)). A smaller boat falls under state titling and registration rules instead; check your state’s agency.
For a boat being measured for the first time, the NVDC lists form CG-5397 (Simplified Measurement).
What a preferred mortgage is
46 U.S.C. 31322(a) defines a preferred mortgage as one that:
- “includes the whole of the vessel”;
- is “filed in substantial compliance with section 31321”; and
- “covers a documented vessel” or a vessel for which an application for documentation has been filed.
Subsection (b) adds that the debt it secures “may have any rate of interest to which the parties agree.” (We read the statute through Cornell’s Legal Information Institute copy of the U.S. Code.)
The word “preferred” is why lenders on larger yachts care about documentation. Navy Federal’s boat loan page lists what it needs for a documented vessel: a copy of the application for the Certificate of Documentation, the new Certificate of Documentation, and the “First Preferred Ship’s Mortgage.”
How the mortgage gets filed
All instruments are filed and recorded at the National Vessel Documentation Center (67.213). An instrument is “deemed filed at the actual date and time at which the instrument is received” by the NVDC (67.215).
Under 67.235, the mortgage must be signed by each mortgagor, name every mortgagor and mortgagee with addresses and interests, and state “the amount of the direct or contingent obligations.” A mortgage filed as a preferred mortgage “must cover the whole of a vessel.” Form CG-5542, the Optional Application for Filing, can go with it (67.231). Electronic filing has been allowed since a rule published December 16, 2024 (89 FR 101500, now 67.218).
The NVDC’s own page says “all documentation and payments must be submitted online through eStorefront.” That’s where owners renew, request an Abstract of Title, file a bill of sale, and file a satisfaction or release of mortgage when a loan is paid off.
NVDC fees
From 46 CFR 67.550, Table 1, last amended November 14, 2023 (88 FR 77902), as published on eCFR when we read it on October 24, 2026:
| Service | Fee |
|---|---|
| Initial Certificate of Documentation, recreational (1 year) | $133.00 |
| Exchange of Certificate of Documentation, recreational (1 year) | $84.00 |
| Return of vessel to documentation, recreational | $84.00 |
| Replacement of lost or mutilated certificate, recreational | $50.00 |
| Approval of exchange requiring mortgagee consent | $24.00 |
| Recreational renewal | $26.00 per year: $26.00 (1 yr), $52.00 (2), $78.00 (3), $104.00 (4), $130.00 (5) |
| Late renewal | $5.00 extra |
| Filing and recording a mortgage or related instrument | $4.00 per page |
| Filing and recording a bill of sale | $8.00 per page |
| Abstract of Title (CG-1332) | $25.00 |
| Certificate of Ownership (CG-1330) | $125.00 |
| Certified copy of a recorded instrument or of a certificate | $4.00 |
The NVDC’s own Table of Fees (NVDCINST 16713, revised September 2025) shows the same amounts. It adds a few that matter at closing: a $15.00 waiver fee if the bill of sale or original build evidence needs a waiver, certified copies at $4.00 an item for each certificate, letter of deletion, certificate of ownership or recorded instrument, and a note that fees are non-refundable under 46 CFR 67.500(e).
What documenting a financed boat costs
The table charges per item and per page, so the total depends on your paperwork. Here’s an example for a recreational boat bought from a private seller with a preferred mortgage, using the September 2025 NVDC schedule. The page counts are our assumptions, not typical figures; count your own documents.
| Item | How it’s charged | Example |
|---|---|---|
| Abstract of Title, ordered before closing to see existing liens | $25.00 | $25.00 |
| Exchange of the Certificate of Documentation into your name, 5-year expiration | $84.00 plus $26.00 for each year past the first | $84.00 + 4 × $26.00 = $188.00 |
| Bill of sale, filed and recorded | $8.00 a page; we assume 2 pages | $16.00 |
| Preferred mortgage, filed and recorded | $4.00 a page; we assume 12 pages | $48.00 |
| Certified copy of the recorded mortgage for the lender | $4.00 | $4.00 |
| Total in this example | $281.00 |
If the boat has never been documented, the initial certificate is $133.00 instead of the $84.00 exchange, which makes the same example $330.00. A seller’s mortgage that has to be released at closing adds its own filing at $4.00 a page. Documentation agents and closing services charge their own fees on top; those aren’t on the NVDC table.
Renewal for up to five years
Recreational endorsements “are valid for 1, 2, 3, 4, or 5 years” under 67.163. A certificate with both a recreational and a commercial endorsement is good for only one year. Renewal uses form CG-1280. The multi-year option came from a Coast Guard rule published January 19, 2021 (USCG-2020-0215, 86 FR 5031), amended again in 2023 (88 FR 77901).
The NVDC warns that third-party renewal companies “do not operate on behalf of the Coast Guard.” You can renew directly on eStorefront at the fees above.
The forms you’ll see
The NVDC’s Instructions and Forms page lists these, among others:
- CG-1258: application for initial issue, exchange or replacement of a Certificate of Documentation, or redocumentation
- CG-1340: bill of sale
- CG-1261: builder’s certification
- CG-5542: optional application for filing a mortgage
- CG-1280: renewal
- CG-7043: request for an Abstract of Title or a certified copy
- CG-5397: simplified measurement
One catch on new boats: 67.99 says “a Manufacturer’s Certificate of Origin is not evidence of the facts of build.” The NVDC wants a builder’s certification on CG-1261 or an equivalent.
How documentation affects your financing choices
Documentation suits some lenders and rules out at least one. Navy Federal lists the documented-vessel paperwork it collects. Truist requires the current title or Coast Guard Certificate of Documentation to refinance a marine loan. U.S. Bank’s refinance page says boat refinancing isn’t available “on boats registered with the U.S. Coast Guard as a documented vessel.” If you plan to refinance later, that last one narrows your options.
Before you close on a documented boat, order an Abstract of Title ($25.00) to see the recorded mortgages and liens against it. If it shows an existing mortgage, ask the seller and your lender how it will be paid off and released at closing. The NVDC accepts a satisfaction or release of mortgage through eStorefront.
The order of the closing paperwork is in buying a boat step by step. For what the lender checks before it gets this far, see the marine survey guide and the published lender terms. Once you know the boat and the price, you can send us your numbers with any question.
Questions people ask
Which boats can be documented with the Coast Guard?
Under 46 CFR 67.5, any vessel of at least five net tons wholly owned by U.S. citizens is eligible, including vessels used only for recreation. A vessel under five net tons is excluded (67.9).
What does a Coast Guard documentation cost?
Under 46 CFR 67.550, as read on October 24, 2026, an initial recreational Certificate of Documentation is $133.00, renewal is $26.00 per year for 1 to 5 years, and mortgages are recorded at $4.00 per page.