Houseboat Loans
AnnieMac Education Center
Houseboat loans have increased in popularity over the past few years due to the appeal of living a marine lifestyle and being able to move around easily. But, financing this type of lifestyle is very different than purchasing a traditional home.
Houseboat Mortgage Basics
Before we discuss the details of a houseboat home, let's make sure we define the difference between a houseboat and a floating home. Floating homes are full homes placed on a floating foundation while houseboats are mobile. Floating homes are typically more expensive and spacious, while houseboats are smaller and more affordable.
The upfront costs of houseboat loans are normally much cheaper than floating homes but come with additional expenses, including moorage fees, fuel costs, and sewage pumping. Houseboats also cost more in terms of insurance and taxes. Owners of houseboats sometimes pay up to three times as much for insurance compared to traditional homeowners, and sales tax is higher on the boat, depending on state laws.
Unfortunately, it is rare to get a traditional mortgage for a houseboat. Since houseboats are not permanent structures, they do not qualify for traditional financing. But, a potential boat owner can use a houseboat loan instead of a mortgage loan.
Most traditional home lenders do not offer financing for a houseboat loan. But, one option to receive financing is to take out a home equity line of credit (HELOC) to purchase a houseboat. HELOC's are a type of second mortgage that allows property owners to access the equity they have built in their home to purchase a houseboat. Personal loans and Marine Loan Brokers are two other ways to receive financing for a houseboat that are not given through mortgage financing.
If you are considering buying a houseboat, it is best to do your research before you commit to a specific loan.