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Old 02-26-2016, 07:34 AM   #143
codeman671
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Quote:
Originally Posted by brk-lnt View Post
A mortgage is "secured" by the appraised value of the property. As a rule of thumb you can get a mortgage for up to 90% of the property value without a lot of hassle, and assuming you have good credit.

For your numbers, you're talking a $300K mortgage and another 33% ($100K) in extras, that is very unlikely to happen.

Also, while mortgage rates may be relatively low right now, the smart money is still with putting as much of a downpayment as possible without totally depleting savings/emergency funds. From your posts it kinda sounds like your friend may be stretching things a little thin. I'd buy the property with a solid downpayment and get a cheaper boat to start. There are plenty of perfectly good boats to be had in the $15K range.
Islands are a bit different. The banks usually require 20-25% down as these are considered seasonal, second homes. They are also held in house (portfolio loan) instead of brokered.
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