The main option for obtaining a “mortgage” for a boat is by purchasing a house boat or a “floating home”. A house boat, from a mortgage perspective, must be stationary so the idea of obtaining what most people would consider a mortgage is not going to happen.
What about a moving Houseboat?
Another common question. You are able to obtain normal boat financing for a house boat but it usually comes at a cost. House boats are typically expensive and resale takes longer than a normal power boat so bank rates are usually pretty high and large down payments are required. Since the Federal Housing Administration does not support floating homes in their program, you may be looking at a 20% or more down payment on your home.
Writing off your boat as a second home
Luckily, there are tax breaks on loan interest for boats that only need to meet a few specifications. There are only three requirements to be able to write off the interest from your boat loan as a second home:
- A sleeping spot
- Cooking facilities (stove, range, microwave, etc)
- A toilet/head (porta-potties count!)
Talk about an easy way to save money? These could save you thousands in tax and is very easy to track. Just be sure to clear documentation of your loan interest and you should be fine come tax time.