Vessel documentation is a national form of registration. It is optional for recreational vessels that qualify. In order to qualify for documentation, the vessel owner must be a U.S. citizen and the vessel must be five net tons (calculation based upon dimensions of vessel - most vessels over 25 feet qualify; however, there are exceptions).

When a vessel is documented with the Coast Guard, a First Preferred Ship Mortgage can be filed in favor of the lender. A First Preferrred Ship Mortgage remains of record until the lender files a Satisfaction of Mortgage or a court order releases the mortgage. When a mortgage is filed against a vessel, the ownership, vessel name, hailing port, etc. cannot be changed without consent from the lender. A First Preferred Ship Mortgage filed with the U.S. Coast Guard is a federal filing versus a state filing. If a vessel is repossessed, the lender has the option of repossessing according to state statutes or through federal courts.