Floating home financing
Floating home financing is much more limited than financing for homes on land. Here are the key considerations to help you determine if financing a floating home might be a possibility for you.
- There are only 2 lenders who will lend money to purchase a floating home in Oregon, generally. Under certain limited circumstances, there is a 3rd lender.
- Lenders require at least a 20% down payment.
- Floating homes are not real estate. They are considered real property and therefore do not qualify for special loan programs, low down payment programs nor ANY of the home loan programs you see advertised on TV, radio or the internet.
- The float has to be in good enough shape for the house to qualify for a loan. To determine whether the float is in good enough shape, the buyer would have a float inspection done which is in addition to a house inspection. Float inspections cost about $700.
- Loans available are 15-, 20-, and 30-year fixed-rate loans.
- Floating home loan interest rates tend to be about a 1/2% to 1 1/2% higher than for loans for houses on land, depending on your credit rating.
- Once you purchase your floating home, you will be responsible for additional monthly payments of $220-1000+ to the HOA or rental moorage. This obligation will be considered by the lender and will further reduce your purchasing power if you are obtaining financing.
- Financing can be available, on a case-by-case basis, that includes float work to make the house eligible for financing. We can help arrange for that when such a structure is possible.
Still sounds like it’s the dream lifestyle for you? Great! We do, too!
Check out our other guides: GUIDE:Floating Home Living, GUIDE: Floating Homes 101 and GUIDE: Choosing a Moorage.