Floating Home Financing
At Marin Modern we often receive inquiries from potential Houseboat homeowners. One of the most important elements of owning
a floating home is the financing. It is not the same as a regular home because a floating home is not "real property". (Though, you
are required to pay property taxes- at a reduced rate compared to similarly priced single family homes).
I called Heather Ziemer, Vice President of Financial Benefits Credit Union about Floating home financing.
(Their number is: (510) 433-9200. They are open 10 a.m. to 4 p.m. Monday through Friday.)
Here is what she had to say: Expect to pay a higher interest rate and you will need 20% down payment. Variable rates are
currently (June 6, 2013) at 5.25% for a thirty year term. It adjusts twice a year. Maximum adjustment is .75 each time with a cap
of 5.00% over the starting rate for the first seven years. The notes are not sold to outside servicers. They are held in house at
Financial Credit Union Bank. This bank has been handling tese types of loans for almost 15 years. It is an 80% Loan to value which
means that you need 20% down. Loan amount maximum is $300,000 but they can go above this amount; it just takes board
approval. However, their liquidity is a bit tight right now and there is a waiting list to get one. Solid credit history is required. You
are probably looking at credit scores of 680 or higher but they will look at the credit report as well. Every seven years there is a
call option that the bank can option. They use the 11th district to cost the funds. They are currently financing 57 floating homes.
None of these loans are in arrears.
They are open 10 a.m. to 4 p.m. Monday through Friday.
Still interested in a floating home? Call me: Anastasia Sheldon at 415-302-4123 or email me at: [email protected]