Homes That Float

A home is a home, but a home can also be a means for transportation. Houseboats are more popular in other countries and can be seen in several different architectural design. There are appoximately 15,000 people who prefer a home that floats in the UK, from canals to rivers and coasts.

While the mortgage process is similar between buying a home on land and a home on water, there are several different requirements. You don’t have to be a millionaire to own a house boat, but it can get pretty expensive when it comes to trying to keep up with the day to day maintenance costs.

There are mortgage loans that are available for buying a houseboat. However, it is not a popular home loan, so you would have to search for a lender who offer it. Houseboat loans are usually given out by marine lenders and the home being purchased must also go through an appraisal inspection to help determine its value. The loan-to-value of a houseboat found upon research is a maximum of 80%.

The purchase of a mortgage for a houseboat also requires a down payment of at least 25% to 35%. Even though these homeowners don’t have a property tax to pay, they are required to pay for sales taxes upon purchase, along with dock rental fees. Houseboats don’t usually increase in value but tend to decrease instead. The mortgage loan term for a houseboat will vary anywhere from 10 years to 30 years amortization.

Interest rates are said to be a lot higher than a normal home, but the borrower usually is able to have the sales tax rolled into the loan, or it can also be included in the down payment and survey costs. Houseboat homeowners are also required to pay an annual re-licensing fee. The licensing fee amount would depend on the size of the houseboat.

So, if you do love the water and wish to live afloat, there are mortgage loans out there for financing houseboats. Here are a few photos gathered from Pinterest to show you how you can float in style.

Don’t forget to visit our houseboat board on Pinterest!