BOATERS BLOG

The modern housing market is quite unique, with many homeowners trading in the traditional house for the unexpected tiny home, container home, or even houseboat. As these alternative housing options are becoming increasingly popular, at National Boat Owner’s Association (NBOA), we are diving into everything you need to know about entering the houseboat community. From making the right decision based on lifestyle to financing a houseboat, including whether you should secure a boat loan or a mortgage, our experts will cover it all.  For the boating aficionado having a houseboat can be a blessing, and it has plenty of perks to excite you. Although, like all things, it has its tradeoffs compared to traditional housing. For any enthusiastic boater, a houseboat is an interesting opportunity to consider as it can add some unique living experiences, whether you’re looking for a houseboat to call home or acquiring a houseboat to serve as a secondary residence or vacation home.

Before diving right in, let’s define what a houseboat is. According to the Collins Dictionary, a houseboat is “a small boat on a river or canal in which people live.” However, a houseboat has also been more broadly defined as “any boat or barge that has been modified or designed to function as a house.” Houseboats come in all shapes, types, and sizes, from standard vessels that have been retrofitted to be a home to non-motorized ships on barges.

Living on the water, while fun, can be a drastic change from what someone accustomed to land living would expect. You get to wake up to a beautiful waterfront view each day, and you have the pleasure of being close to the aquatic activities that drew you to the coast in the first place, such as sailing, fishing, water skiing, tubing, etc. It is also financially advantageous. In some states and territories, you may not be required to pay property taxes if you live on a houseboat. However, before running off to buy one, you should remember that there are some financial disadvantages to consider as well. The upkeep and maintenance of a houseboat can be costly, as well as the fuel needed to keep your houseboat moving. You should also consider the price of slip rentals at marinas and homeowner’s association fees at certain marinas.

As you begin to explore the options for purchasing a houseboat, it is crucial to understand whether you need a home mortgage or a boat loan. Since houseboats are still primarily considered recreational devices and not permanent residences, securing a mortgage from most banks and lenders can be difficult, especially if you plan to utilize its functions as a watercraft. The decision to categorize houseboats as such is related to the risks and depreciation that result from the natural wear and danger of being on the water. However, it is possible to secure a mortgage for your houseboat under the condition that it will operate as a floating home stabilized in one location.

As you weigh your options between financial institutions, it is vital to remember that houseboat loans are typically larger than standard boat loans due to the required amenities of everyday living. Boat loans and personal loans usually have a limit of $100,000, so any excess expense will have to be covered separately, either with another loan, credit, or cash. Boat loans generally require a down payment of approximately 20%, and APRs can go as low as 4.29%; however, 4.5% is a more typical number.

Financing your houseboat can be challenging, and there is no single best way to go about it since options will vary based on location and the type of houseboat you plan to purchase. While reviewing your options with reputable banks and credit unions, especially ones you have a personal relationship with, is a great place to start, NBOA is here to help you find the best loan options available. Check out our Marine Finance Center and learn about the market’s top competitive rates and terms.

After settling on financing options, the next step is to consider insurance options for your houseboat. Of course, insuring your large investment and your home is a no-brainer! Luckily, NBOA can help you here, too, with a free quote for affordable boat insurance. It’s as easy as clicking a few buttons or getting in touch with our experts for further details about putting yourself, your family, and your houseboat in the best hands.

Shopping for a houseboat, mortgage or loan, and insurance are large items on your to-do list. When it comes time to settle into your new home on the water, let NBOA assist with the rest. From towing programs to safety equipment and lifejackets, our team is ready to prepare you for an extraordinary journey of houseboat living.