Floating home owners often ask: "Can I tap my equity?" After years of appreciation in the Sausalito market, many owners are sitting on significant equity and want to access it for renovations, other investments, or general liquidity. The answer is more nuanced than a simple yes or no.
The Short Answer on HELOCs
Conventional HELOCs (home equity lines of credit) and home equity loans are essentially impossible on Sausalito floating homes. These products are designed for real property — land homes — and require a lien position on real estate. Since most floating homes are personal property (vessels), not real property, the standard HELOC products at Wells Fargo, Chase, and Bank of America simply don't apply.
Why Standard Equity Products Don't Work
A HELOC creates a lien against the borrower's real property — the house and land. A floating home lien is against the vessel, not real property. Most banks that offer HELOCs don't have personal property or vessel equity products. The infrastructure for underwriting, documenting, and recording a second lien against a vessel is not something most retail lenders maintain.
Options That Actually Work
Option 1: Cash-Out Refinance
The most common way Sausalito floating home owners access equity is through a cash-out refinance — replacing their existing loan with a new, larger loan and taking the difference as cash. Most floating home lenders will go up to 70–75% LTV on a cash-out refi.
Example: $900K appraised home, $300K existing loan. At 70% LTV, new loan = $630K. Cash out = $630K - $300K = $330K. Closing costs apply, and you restart the loan clock on a new loan term.
Option 2: Private Bridge or Equity Loan
Some private lenders will make second-position loans against floating home equity — effectively functioning like a HELOC but in a private lending context. Terms are shorter (1–3 years), rates are higher (10%–15%+), but access to equity is available without refinancing the entire first loan. This works best when the first loan has a favorable rate you don't want to touch.
Option 3: Cross-Collateralization
If you have other assets — real property, investment accounts, other vessels — some lenders will cross-collateralize: they lend against the combined collateral of the floating home plus other assets. This can open equity access that wouldn't be available on the floating home alone.
Option 4: Personal or Business Lines of Credit
For renovation funding specifically, some owners use personal lines of credit or business credit lines rather than tapping home equity. These are unsecured and carry higher rates, but they can be quick and don't require the underwriting process of a refinance.
When a Cash-Out Refinance Makes Sense
- Current loan rate is at or above current market rates (so the refi doesn't cost you much)
- Significant equity available (typically need 30%+ equity to have meaningful cash-out capacity at 70% LTV)
- Clear use for the proceeds (renovation, investment, debt consolidation)
- Ability to qualify for the new, larger loan amount
Renovation Financing Specifically
Many floating home owners want equity access specifically to fund renovations. For major renovation projects, Paul sometimes structures a renovation loan or works with private lenders who are comfortable lending against the home's post-renovation value (ARV lending). This requires a more detailed underwriting process but can fund renovation projects that exceed what's possible with standard refinancing.
The Market Context
Sausalito floating homes have appreciated dramatically over the past decade. A home bought for $400K in 2015 may be worth $800K+ today. That equity is real and valuable — and there are ways to access it, just not through the standard HELOC products you'd use for a land home. Call Paul at (415) 332-7539 to discuss your specific equity situation and which access strategy fits.
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.