Portfolio loans are one of the most important — and least understood — tools in floating home financing. For many buyers, a portfolio lender offers better terms than a specialty marine lender. Here's exactly how they work.
What Is a Portfolio Loan?
A portfolio loan is a loan that a bank or credit union holds on its own balance sheet rather than selling to Fannie Mae, Freddie Mac, or another secondary market buyer. Because the lender keeps the loan, it isn't constrained by secondary market underwriting guidelines. It can write loans on properties — including floating homes — that don't fit conforming standards.
The name comes from the fact that these loans stay "in the lender's portfolio" rather than being packaged and sold.
Why Portfolio Lenders Finance Floating Homes
Floating homes don't fit Fannie/Freddie guidelines for several reasons: they're typically personal property rather than real property, they sit on leased water slips rather than owned land, and their valuation uses vessel guides rather than real estate appraisals. All of this disqualifies them from secondary market programs.
Portfolio lenders aren't subject to those restrictions. They underwrite floating homes based on their own criteria — which can be much more flexible, particularly for higher-priced homes and buyers with strong overall profiles.
Portfolio Loans vs. Marine Loans: How to Choose
When the Second Lender Typically Wins
- Borrowers with complex income (self-employed, multiple income streams, variable compensation)
- Longer desired loan terms (25 years vs. 15–20 for Bank of Marin programs)
- Credit scores in the 680–700 range where Bank of Marin may be tighter
- Homes with characteristics that require more flexible underwriting
- Buyers who want a member-owned institution with a personal touch
When Bank of Marin Typically Wins
- Standard floating homes at well-established docks with long leases
- Buyers with straightforward W-2 income documentation
- Credit scores of 700+, with 20–25% down
- When Bank of Marin's current pricing is stronger for your profile
Who Offers Portfolio Loans for Floating Homes in Sausalito?
The institutional floating home loan market in Sausalito is small: Bank of Marin and a second lender Paul works with directly are the two portfolio lenders active in this space. Both hold their loans on their own books rather than selling them, which is the essential feature that makes floating home financing possible. Neither operates a public-facing application for this product — both work exclusively through established broker relationships.
Walking into a branch and asking for a floating home loan will typically produce confusion from loan officers unfamiliar with the product. The only reliable path is through a broker who has placed loans with both lenders and knows exactly who to call.
What Portfolio Lenders Look For
Each portfolio lender has its own criteria, but common requirements include:
- Credit score of 700+ (some go lower with larger down payment)
- 25–30% down payment
- Debt-to-income ratio under 43%
- Two years of income documentation
- Marine survey within 12–18 months
- Slip lease with 5+ years remaining
- Liveaboard insurance in force
How Paul Accesses Portfolio Lenders
Paul Bergeron has been placing floating home loans with Bay Area portfolio lenders for decades. These relationships mean your file gets to the right underwriter, framed correctly, with the supporting documentation that makes portfolio lenders comfortable. That's very different from a cold application from an unknown broker. Call Paul at (415) 332-7539 to discuss whether a portfolio loan is the right fit for your purchase.
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.