Floating home owners refinance for the same reasons land home owners do — to lower their rate, change their loan term, pull equity, or switch from one loan type to another. The process is different from a conventional refinance, but it's well-established territory for the lenders who work this market.
Can You Actually Refinance a Floating Home?
Yes. The same lenders that fund floating home purchases — Bank of Marin and a second lender Paul works with directly — will also refinance existing loans. If you have a floating home with equity and a current loan, refinancing is available. The pool is small and relationship-driven, which is why working with Paul for the refinance (just as you would for the purchase) produces the best results.
When a Refinance Makes Sense
Consider refinancing if:
- Rates have dropped. If you took your loan out when rates were higher, a rate-and-term refinance can reduce your monthly payment.
- Your home has appreciated. Sausalito floating homes have appreciated significantly. A higher appraised value improves your LTV and may open better loan programs.
- You want to pull equity. A cash-out refinance lets you access equity for renovations, slip upgrades, or other purposes.
- You want to change loan types. Moving from a private or bridge loan to a longer-term marine or portfolio loan can reduce your rate and monthly payment.
- Your loan is maturing. Short-term private or bridge loans that are approaching maturity need to be refinanced or paid off.
The Refinance Process
A floating home refinance follows the same basic steps as a purchase loan, with one difference: there's no purchase contract or escrow company involved. The process is:
- Pre-qualification with a broker
- Updated marine survey (most lenders require a fresh survey, typically within 12–18 months)
- Updated appraisal or NADA valuation
- Income and credit verification
- Slip lease review
- Loan approval and closing
What's Different About a Floating Home Refinance
- The marine survey is still required — lenders want current condition data
- The slip lease is still reviewed — remaining term matters as much for a refi as a purchase
- Closing costs are similar to a purchase (1–3% of loan amount)
- Timeline is similar — 30–45 days is typical
Cash-Out Refinancing for Floating Homes
Cash-out refinancing — where you refinance for more than your current balance and take the difference as cash — is possible on floating homes, but lenders are conservative. Most will cap a cash-out refi at 70–75% LTV (compared to 80% or higher on conventional real estate). So on a home appraised at $800K with a $350K loan, you might be able to cash out up to $210K ($800K × 70% = $560K new loan, minus $350K payoff = $210K cash).
What If You Have a Private or Bridge Loan?
Many floating home buyers use private or bridge financing when they can't immediately qualify for a long-term loan — perhaps because of a credit event, documentation gap, or unusual property characteristics. Once those issues are resolved, refinancing into a long-term marine or portfolio loan almost always makes sense. Paul Bergeron frequently arranges the initial bridge and then the permanent refinance, which means the transition is planned from the start and happens smoothly.
How to Start
The first step is a conversation with a broker who knows the floating home lending market. Paul can assess your current loan, current appraised value, credit profile, and slip lease situation — and tell you whether a refinance makes sense and which lenders offer the best current programs. Call (415) 332-7539 or reach out online.
Ready to talk financing?
Paul Bergeron is the only Sausalito broker who handles both the home and the loan. Call (415) 332-7539 or reach out below.