Quote:
Originally Posted by Leoskeys
Hello,
I already have a home on the lake, but I'm trying to help a friend who is considering buying an island home. Anyone know if the mortgage process is different? And if he wanted one loan to cover buying home, boat, and upgrading home, can that be done with one loan versus two or three different loans?
For an "easy math" instance, home price of $300k, $50k for boat, and $50k for improvements. Do you think he can get one mortgage for $400k?
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Trying to tie your boat loan into your mortgage will not be possible, not to mention why spread out your boat payment over 30 years? It is possible to wrap in improvements as long as you have enough percentage of the total combined purchase to put down, and provided it appraises ok in completed state. Island appraisals can be tricky.
If there is sufficient equity position, he could put it on a HELOC but doing the simple math it doesn't sound like that will work unless they are putting a lot down. Assume a $350k all in on the house, you will need 20-25% down plus closing costs. That leaves you are $280k mortgaged with 20% down, or $70k+ out of pocket. In order to have enough equity on top of that to buy a boat on a heloc you would end up having to have a much larger equity stake in the house, or more cash outlay up front.
In short, buy the boat separately. It wont work otherwise. Also, make sure they have plenty of cash to start down this path, you are not going to get a island mortgage with 3% down and PMI... They will want 20-25%.
I will mirror the other comments made, don't waste your time with a big lender. Go to Laconia Savings, MVSB, or even Newburyport 5 Cent.