Interest rates on floating home loans are higher than conventional mortgages — that's the consistent reality of financing a specialized asset through a limited pool of lenders. But there's meaningful variation across loan types and borrower profiles. Here's how the different options compare in 2026.
The Rate Premium: Why Floating Home Loans Cost More
Floating home loans carry a rate premium over conventional mortgages for several structural reasons:
- Smaller lender pool: Less competition means less price pressure on rates
- Specialized collateral: Lenders price for the complexity of underwriting and holding a vessel loan
- Limited secondary market: These loans stay on lenders' books or get placed with institutional investors who price for specialty risk
- Higher LTV risk: Even with 20–30% down, lenders see more liquidation risk than with a standard house
In practice, well-qualified borrowers typically see floating home loan rates 0.5%–1.5% above the conventional 30-year fixed rate at the time of application.
Rate Ranges by Lender (August 2026)
Note: There are two institutional lenders for Sausalito floating homes — Bank of Marin and the second lender Paul's team works with directly. Both max out at $1,000,000. Rates below are indicative ranges based on current programs. Actual rates depend on your credit score, down payment, loan amount, and specific property. Call Paul for a current quote.
Bank of Marin
- Rates: approximately 7.25%–8.5%
- Terms: 15–20 years, fixed rate
- Best for: W-2 borrowers, 700+ credit, 20–25% down, standard floating homes
- Max loan: $1,000,000
A Second Lender — Contact Paul
- Rates: approximately 7.5%–8.75%
- Terms: 15–25 years, fixed rate
- Best for: Self-employed borrowers, 680+ credit, buyers wanting longer terms
- Max loan: $1,000,000
Private / Bridge Lending (Through Paul's Network)
- Rates: 10%–15%+ depending on situation
- Terms: 1–3 years (interest-only common)
- Best for: Situations where institutional lending isn't available — credit challenges, speed, unusual properties
- Arranged through Paul when the institutional path isn't open
Rate Factors Within Each Category
Within any loan category, your rate is affected by:
- Credit score: 740+ gets best pricing; 680–720 pays more
- Down payment: 25–30% down often gets better rates than 20%
- Loan amount: Very high or very low amounts may carry rate adjustments
- Slip lease: Shorter remaining lease = lender prices in more risk
- Hull type: Ferro-cement (most common, well-understood) tends to price better than steel or unusual construction
Fixed vs. Adjustable Rates
Most floating home loans are fixed-rate — the marine lending market doesn't have the ARM products that the conventional mortgage market has developed. Some portfolio lenders offer 5/1 or 7/1 ARMs, which can provide a lower initial rate but carry adjustment risk. Given the specialized nature of floating home refinancing, most buyers prefer the predictability of a fixed rate.
How to Get the Best Rate
With only two institutional lenders in this market, getting the best rate means knowing which one fits your specific profile — and presenting your file in the way each lender expects. Paul runs your scenario against both Bank of Marin and the second lender simultaneously, without multiple credit pulls, and tells you which offers better terms for your situation. Because the lender pool is small and relationship-driven, the presentation layer matters as much as the numbers on the page.
Call Paul at (415) 332-7539 for a current rate comparison specific to your credit profile, income type, and property. One conversation saves weeks of misdirected research.
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.