This is the first step for everyone learning about floating homes.
Take a moment to read these 6 VERY IMPORTANT things before exploring our Guides below.
1) If you find a floating home for sale at under $150,000, then you can likely deduce that you will need to buy the house with CASH.fuzzmcpherson2019-02-18T11:26:45-08:00
- If the floating home is listed for sale at an asking price of under $150,000, it very likely could be the case that it does not have a float that would be in good enough shape for the house to qualify for financing in its current condition.
- Banks/Lenders will not lend on a floating home if the float is in bad condition.
- Approximately 10%-30% of the floating homes listed for sale must be bought with CASH ONLY, not with a loan.
2) There are only 2 lenders who will finance a floating home mortgage in Oregon.fuzzmcpherson2019-02-18T11:36:38-08:00
- Under certain limited circumstances, there is a 3rd lender.
- Unless you happen to bank at one of these institutions, your bank will not make a loan on a floating home.
- Floating homes are not considered real estate. They are real property, therefore they cannot qualify for special loan programs, low down payment options or the loan programs you see advertised on the radio, internet or TV.
3) All floating home lenders will require a cash down payment of 20% of the purchase price.fuzzmcpherson2018-11-01T21:11:39-07:00
- You cannot use an FHA or VA loan, nor any other down payment reduction loan programs.
- If you cannot access cash which totals 20% of the purchase price, then you will not qualify for a floating home loan.
4) Some floating home moorages do not allow dogs at all and almost all moorages prohibit Airbnbs.fuzzmcpherson2018-11-01T21:11:29-07:00
- Every floating home moorage is unique.
- Some moorages place restrictions on the quantity, breed or size of dogs allowed and some do not allow dogs at all.
- Nearly every marina prohibits the short-term subletting of floating homes.
- Most do not allow long-term rentals or subletting.
- Breaking these rules may likely result in the floating home owner being served an eviction notice or forced to leave the moorage and sell the floating home.
5) You will be required to pay additional fees of about $190 up to $1,000 per month to the moorage.fuzzmcpherson2018-11-01T21:11:12-07:00
- Half of all floating homes are located in rented slips (where the floating home owner leases the slip from a moorage landlord). The other half are in owned slips (where the floating home owner is part of an HOA which owns the slip and a share in the moorage).
- Regardless of whether the floating home slip is rented or owned, once you purchase your floating home, you will be responsible for additional monthly payments of about $190 –$1,000+ to the landlord or to the HOA. This payment is separate and in addition to your monthly floating home loan payment, but does cover water, sewage, trash, and parking.
- Monthly slip rent typically runs from $600 to $800, but sometimes is as much as $1,100+, depending on the moorage or the home’s location within the moorage
- Monthly HOA fees are typically around $350, but the lowest one currently is $195, and there are some that are over $500.
6) As part of the buying process, the buyers customarily pay for the float and house inspection which, in total, cost about $1,100.fuzzmcpherson2018-11-01T21:11:20-07:00
- Even if you are paying cash for the floating home, I highly recommend every prospective buyer obtain a float inspection.
- A float inspection costs around $750 and the buyer customarily pays for it.
- Skipping the float inspection in order to save $750 is not recommended. Not knowing the condition of the float prior to purchase can cost a buyer up to $100,000.
- The house inspection is separate from the float inspection.
- A home inspection costs around $350 and the buyer customarily pays for this as well.
- In total, buying process inspections for a floating home will cost a prospective buyer around $1,100, regardless of whether or not the deal closes.
Explore Our Guides for Floating Homes
These guides are for daydreamers, wannabe pirates, paddling misfits, kayak adventurers, and explorers of the world.
