The crew members of the boat, named as the Amy Jane which is believed to belong to the McBride family from Downings, have been transported from City of Derry Airport to Altnagelvin Hospital (pictured right).
The vessel was fishing about 15 miles of the coast of Malin Head before it went down around 9.55am this morning.
The search and rescue helicopter based in Sligo arrived at the scene and overseen the situation.
The crew of the boat took to life-rafts amidst heavy sea swells measuring up to four metres.
The coastguard service based Belfast co-ordinated the rescue aided by Malin Head.
Joe Joyce of Lough Swilly lifeboat revealed they got a call from the Malin Head coast guard radio station to inform them of the emergency.
“The boat was taking on water fast and crew had to done survival suits and actually take to the life-raft.
“There was four metre swells and it was blowing a force six wind,” he revealed.
Hugh McBride of McBride Fishing said everyone is just so delighted that nobody was injured as a result of the sinking.
He revealed the boat had only left port earlier to go on a fishing trip to Greencastle.
“We have absolutely no idea at this moment in time as to what happened.
“She began taking on water to deck level and to main deck level and at that point it was decided to abandon ship.
“Everything was done in good order and they had all the safety equipment. They got into the life-raft safely thank God and everyone is fine,” he said.
Richard Newell of the Belfast Coastguard, which co-ordinated the search, said conditions were hazardous but thankfully the emergency services responded well and all are safe.
A full investigation is expected to be carried out into the cause of the sinking.