One of the most common questions Paul and Roman hear from buyers new to the floating home market is: "Can I get a mortgage for this?" The honest answer is: it depends on the home, and the process looks very different from buying a land home. Conventional lenders — your big banks and standard mortgage brokers — rarely offer financing for Sausalito floating homes. Instead, buyers use a combination of marine lenders, portfolio lenders, and specialty programs that have been designed specifically for the liveaboard market.
Marine Lenders
Marine lenders specialize in vessel financing, and many of them have developed specific programs for floating homes that meet their underwriting criteria. These lenders understand hull types, slip leases, and the unique title structure of floating home ownership in a way that conventional mortgage underwriters simply don't.
What marine lenders look for: Most marine lenders want to see a NADA-appraised value, a clean marine survey from a certified surveyor, evidence of a long-term (not month-to-month) slip lease, and standard credit and income documentation. Down payment requirements are typically higher than conventional mortgages — 20% to 30% is common, and some lenders require more for older or non-standard vessels.
Interest rates on marine loans are generally slightly higher than conventional mortgage rates, reflecting the specialized nature of the collateral. However, the gap has narrowed as more lenders have entered the space and competition has increased.
Portfolio Lenders
Portfolio lenders are banks or credit unions that hold loans on their own books rather than selling them to Fannie Mae or Freddie Mac. Because they aren't constrained by secondary market underwriting standards, they have more flexibility to lend on non-conventional assets like floating homes.
Several Bay Area credit unions and community banks have active floating home lending programs. These lenders often have competitive rates and terms because they know the local market well — they've been lending on Sausalito floating homes for years and have direct experience with the collateral. Paul and Roman have relationships with several portfolio lenders who actively serve the Sausalito market and can provide introductions.
Chattel Loans and Other Options
A chattel loan is a loan secured by personal property (the vessel) rather than real estate. Chattel loans are an option for buyers who cannot qualify for a marine or portfolio mortgage, but they typically carry higher interest rates and shorter terms. They're most commonly used for lower-priced homes or homes that don't meet the underwriting standards of traditional marine lenders.
Cash is always king in the floating home market. Because financing is more complicated, sellers consistently prefer cash buyers when they have the choice, and cash buyers often have negotiating leverage that financed buyers don't. If you have the resources to purchase all-cash, it's worth exploring even if you plan to refinance later.
Paul Bergeron also holds an NMLS license (#399152) and can provide guidance on the financing landscape as part of the transaction advisory process. Understanding your financing options before you start touring homes is one of the most important steps you can take to position yourself as a serious buyer in this market.