If you’re planning on living on your boat, you can get a mortgage. You can take out a Preferred Ship Mortgage, which will be filed with the U.S. Coast Guard if your vessel is over 26 feet in length. In the event it’s smaller, your lender will record its lien against your state title. The lien will be released in both cases once you repay your loan. These kinds of loans can be a bit more difficult to get since the boat you purchase has to be made in the U.S. and you must be a U.S. citizen to be eligible.
In most cases, you’ll need to put 10-20% down on any boat you purchase. Financing a boat you want to live on, known as a houseboat or a floating home (there are distinct differences between the two), is not as simple as just getting a mortgage. Most banks see boats, houseboats and floating homes as different types of living spaces and that distinction is key.
Find out more about financing a boat you plan to live on.
If you plan to live on a boat, keep in mind that it is not a cheap alternative to a house. In addition to paying for the boat itself, you’ll need to pay for electricity, which can cost you anywhere between $3 and $30 a night. You’ll also need to pay for your cellphone, internet, boat parking and a number of other expenses that can add up quickly.