Mortgage bankers originate, sell, and service residential mortgages for consumers on behalf of the lender they work for. They also may provide escrow services. A mortgage banker plays a central role as people navigate the complexities of applying for a mortgage.
Mortgage bankers are often the first and last point of contact. Getting an interest rate and terms that work for your financial situation, as well as saves you money, is incredibly valuable.
Key Points
• Mortgage bankers originate, sell, and service loans for residential properties.
• Mortgage bankers typically work for a single lender.
• Licensing requirements vary; nonbank originators must register.
• Mortgage bankers provide preapproval and guide through the loan process.
• Revenue comes from fees, points, servicing, securities, and yield spread premium.
What Is a Mortgage Banker?
An individual or an institution that originates, sells, or services a home mortgage loan can be considered a mortgage banker.
Individual mortgage bankers work for a single lending institution and help applicants sort through the different mortgage types. Mortgage bankers are also called mortgage lenders or mortgage loan officers when referred to in this way.
Mortgage bankers can get homebuyers on the right road with mortgage preapproval. They serve as the primary point of contact for buyers’ lending needs.
A mortgage banker can also be an institution, such as a bank, credit union, or other direct mortgage lender. When talking about a mortgage banker that services a loan, for example, it’s in reference to the institution.
A mortgage loan originator employed by a credit union, bank, or a subsidiary of a bank does not have to obtain a loan originator license. Nonbank mortgage loan originators must be licensed in the states where they do business and must be registered with the Nationwide Multistate Licensing System & Registry.
The licensing requirements were put in place after the mortgage meltdown of 2008 to protect consumers from predatory lending and to prevent fraud.
At their core, mortgage bankers have the ability to create or sell a new mortgage loan. They also have the ability to service it once the loan closes. Here are the details of the mortgage banker’s role:
Originate Loans
Mortgage bankers originate loans, meaning they take an application and create a new mortgage for a residential home. Conforming loans are usually sold to Fannie Mae or Freddie Mac.
Sell Loans
Mortgage bankers sell loans so they can engage in more lending. If it’s a conventional loan, conforming loan, the sale typically goes to the government-backed enterprises, Fannie Mae or Freddie Mac. This increases lenders’ liquidity so they can originate more loans to more customers instead of carrying the amount of the loan on their books.
Service Loans
Once the mortgage has closed, the lender needs to be paid every month. This is what mortgage servicers do: They take on the day-to-day task of making sure your payment gets to all parties that need to be paid. Servicing loans is usually in reference to the mortgage banker as an institution, not the individual mortgage loan officer.
First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.
Questions? Call (888)-541-0398.
How Do Mortgage Bankers Make Money?
Individual mortgage bankers may make money from a salary, commission, or a combination.
Institutional mortgage bankers make money from origination fees, mortgage points, mortgage servicing, mortgage-backed securities, and the yield spread premium. The yield spread premium is how much money they make based on what they charge a customer relative to how much it costs to obtain that financing.
Differences Between a Mortgage Banker and a Loan Officer
Mortgage banker and loan officer, or loan originator: These terms are often used interchangeably.
However, while a mortgage banker can refer to both individuals and institutions, a loan officer is always an individual.
Differences Between a Mortgage Banker and a Mortgage Broker
In your research to get the best mortgage, you may have also come across mortgage brokers. Though applying for a mortgage will have the same requirements whether you go through a mortgage broker or a mortgage banker, a mortgage banker is different from a mortgage broker in who they work for and how they obtain your mortgage.
A mortgage banker works for a single lending institution that makes loans directly to consumers. The lending decision and underwriting are typically made at the bank level, which can streamline the process.
A mortgage broker works with many different lenders. This is helpful if you want to shop around and don’t have time to do the legwork or need to find a specialty loan not offered by all lenders.
When Is It Better to Have a Mortgage Banker Than a Broker?
Your best bet for finding a home loan with terms most favorable to your financial situation is to shop around for a mortgage. A mortgage banker is closer to the lending process than a mortgage broker, but a broker has access to a greater number of lenders.
Be sure you’re comparing apples to apples on the mortgages offered to you by studying the loan estimate you’re given by each lender after applying. You should take into account both the interest rate and fees being charged for the loan.
The Takeaway
A mortgage banker can play a major role in getting you to the closing table with the right loan. By any name — mortgage banker, loan officer, loan originator — the person who guides you through the loan process is a key part of the home-buying journey.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
FAQ
What does a mortgage banker do?
A mortgage banker can originate, sell, and service loans for customers.
Is a mortgage banker similar to a mortgage broker?
Not really. A mortgage banker works for a single lender and makes loans directly to you. Mortgage brokers do not lend money but instead find a lender to work with their buyer.
How do you choose a mortgage banker?
Compare rates and terms from different lenders by getting prequalified for a mortgage. As you communicate with the mortgage banker at various lenders, consider the speed and clarity of communications and how knowledgeable the person seems to be and how much attention they pay to your needs.
Photo credit: iStock/Lacheev
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
You may know someone who lost a home to foreclosure, but you might not know all the ins and outs of the process.
When the lender takes back a property after the mortgage has gone unpaid for a specified period of time, that’s a mortgage foreclosure. The process varies by state and by lender, but there are things you can do to avoid it.
Here’s what you need to know about foreclosure and moves you can make if you’re facing it.
Key Points
• Mortgage foreclosure occurs when homeowners miss payments, leading to lenders reclaiming the property.
• Reinstatement involves paying all overdue amounts to prevent foreclosure.
• Forbearance agreements allow temporary reduction or pause in payments.
• Loan modification changes terms to make payments more manageable.
• Exploring these options helps avoid foreclosure and maintains financial stability.
What Does Foreclosure Mean?
When a buyer finances a home, the home mortgage loan is secured with the property, meaning the property is used as collateral on the loan. If the homeowner fails to make the agreed-upon payments on the due dates, the lender can take the property back. This is why it’s so important to think about what ifs as you go through the mortgage prequalification and mortgage preapproval process. How would you keep up payments in the event of a job loss? Do you have an emergency fund in place?
Each state has its own laws regarding foreclosure and its own state foreclosure rate. Where you live will determine how properties are foreclosed. There are two main types of mortgage foreclosure.
First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.
In some states, the lender is required to go through the court system to foreclose on a property. This is known as judicial foreclosure. In other states, the lender does not have to go through the court process.
Judicial
With a judicial foreclosure, a lender must get a court order to foreclose on a property. The lender must file a complaint with the court, which is also sent to the homeowner and any other lienholders. Generally, the mortgage note must also be filed with the court.
Some states require loss mitigation efforts before a suit can be filed, meaning the mortgage servicer must work with the borrower to help them avoid foreclosure. Most of these foreclosures are not contested, resulting in a default judgment against the homeowner.
After this, the property may be scheduled for sale (usually a foreclosure sale or sheriff’s auction). The homeowner may appeal the foreclosure judgment.
Nonjudicial
In a nonjudicial foreclosure, deeds of trust can be foreclosed without going through the court system. Lenders must give special notice to the property owner and wait a specified amount of time before auctioning the property off.
Some states allow both judicial and nonjudicial foreclosure, while others may only allow one or the other. Below is a summary of states and what process they follow for mortgage foreclosure.
State
Foreclosure process
Alabama
Primarily nonjudicial
Alaska
Primarily nonjudicial
Arizona
Primarily nonjudicial
Arkansas
Primarily nonjudicial
California
Primarily nonjudicial
Colorado
Primarily nonjudicial
Connecticut
Primarily judicial
Delaware
Primarily judicial
District of Columbia
Primarily nonjudicial
Florida
Primarily judicial
Georgia
Primarily nonjudicial
Hawaii
Primarily judicial
Idaho
Primarily nonjudicial
Illinois
Primarily judicial
Indiana
Primarily judicial
Iowa
Primarily judicial
Kansas
Primarily judicial
Kentucky
Primarily judicial
Louisiana
Primarily judicial
Maine
Primarily judicial
Maryland
Primarily nonjudicial
Massachusetts
Primarily nonjudicial
Michigan
Primarily nonjudicial
Minnesota
Primarily nonjudicial
Mississippi
Primarily nonjudicial
Missouri
Primarily nonjudicial
Montana
Primarily nonjudicial
Nebraska
Primarily nonjudicial
Nevada
Primarily nonjudicial
New Hampshire
Primarily nonjudicial
New Jersey
Primarily judicial
New Mexico
Primarily judicial
New York
Primarily judicial
North Carolina
Primarily nonjudicial
North Dakota
Primarily judicial
Ohio
Primarily judicial
Oklahoma
Primarily nonjudicial
Oregon
Primarily nonjudicial
Pennsylvania
Primarily judicial
Puerto Rico
Primarily judicial
Rhode Island
Primarily nonjudicial
South Carolina
Primarily judicial
South Dakota
Primarily nonjudicial
Tennessee
Primarily nonjudicial
Texas
Primarily nonjudicial
Utah
Primarily nonjudicial
Vermont
Primarily judicial
Virginia
Primarily nonjudicial
Washington
Primarily nonjudicial
West Virginia
Primarily nonjudicial
Wisconsin
Primarily judicial
Wyoming
Primarily nonjudicial
When Does Mortgage Foreclosure Begin?
Mortgage foreclosure begins with the first missed payment, though a lender’s actions will escalate the more payments a homeowner misses. With the first missed payment, the mortgage lender won’t take the property back, or even issue a notice of default, but will reach out to the borrower to help them get payments back on track.
The lender will also report a nonpayment or late payment to the credit bureaus and issue a late fee.
Typically, lenders won’t issue a notice of default until the borrower defaults on three missed payments, or 90 days past due (this is standard practice, but lenders can issue a notice of default sooner than 90 days). Default is the precursor to foreclosure.
Foreclosure Timeline: How Long Does Mortgage Foreclosure Take?
Once the notice of default arrives after 90 days past due, the time it takes to complete the foreclosure will vary by state. In some states, it can be a matter of months. In others, much longer. In the last quarter of 2024, the average time a property took to complete foreclosure was 762 days.
In jurisdictions where each step of the process requires court approval (judicial foreclosures), court backlogs can delay the foreclosure processes for years.
Why Do Foreclosures Happen?
Foreclosure occurs in a number of situations. Some of the most common:
• Being underwater. When a homeowner has negative equity in the home, the property is more likely to be foreclosed on. Having an underwater mortgage is the most common reason for foreclosure.
• Rising interest rates. When a borrower’s loan has an adjustable interest rate, a sudden rise in the amount owed each month can lead down the path to foreclosure. With the 5/1 ARM, for example, the interest rate is fixed for the first five years and then adjusts once a year.
• Mortgage types. Sometimes even the different kinds of mortgages can contribute to default. With an interest-only mortgage, for instance, after five or 10 years of interest payments, principal and interest kick in, resulting in higher payments.
• Personal situations. When the payment on a mortgage loan becomes too much or when a life event (hospitalization, death, divorce, layoff) prevents homeowners from making monthly payments, they can slip into default and eventually foreclosure.
If the homeowner doesn’t work with the lender to make a plan for repayment of the missed payments, the mortgage servicer can seek foreclosure.
Can You Avoid Foreclosure?
Homeowners have options if they’re facing foreclosure, and the sooner they contact their mortgage lender or servicer, the more they will have. Some of these include:
• Reinstatement. If you’re able to pay off the past due amounts and any penalty fees, the lender will stop the foreclosure process.
• Repayment plan. A repayment plan allows you to tack on a portion of your past-due payments to your regular payment each month. This makes sense if you’ve only missed a small number of payments and will no longer have trouble making a monthly mortgage payment.
• Forbearance. If you qualify for mortgage forbearance, your lender might pause or lower monthly mortgage payments for a short amount of time. When you start making payments again, you’ll add portions of your missed payments to your regular payment to catch up.
• Loan modification. With a loan modification, the lender permanently alters the terms of the mortgage contract, so the payment is more manageable. This can include a reduced interest rate, adding missed payments to the loan balance, extending the term of the mortgage, or even canceling part of the mortgage debt.
• Filing for bankruptcy. Filing for Chapter 13 bankruptcy may allow you to keep certain assets like a house or car. A court must approve your repayment plan. It stays on your credit report for seven years. You might want to consult with a bankruptcy attorney if you’re thinking about going this route.
• Selling your home. If you have enough equity in your home to pay off the mortgage and pay for the cost of selling your home, you may be able to sell your home to avoid foreclosure.
• Deed in lieu of foreclosure. A deed in lieu of foreclosure is essentially when you hand over the title of your home to the lender instead of going through a foreclosure. It is less damaging to your credit than a foreclosure. (Note: SoFi does not offer a Deed in Lieu at this time.)
• Short sale. If the lender agrees to a short sale, it is agreeing to allow the home to be sold for less than what is owed. The deficit is taxable if the mortgage terms hold the borrower liable for the full amount of the loan.
Foreclosure has a huge impact on your credit. It will stay on your credit report for seven years after the first missed payment, and the multiple delinquent payments are a further knock against your credit scores, making it hard to go shopping for another mortgage and other loans.
After a foreclosure, it could take two to seven years to get a new conventional or government-backed mortgage.
But there are ways to deal with financial hardship. And a key first step where foreclosure is concerned is to reach out to your mortgage servicer and discuss a plan.
The Takeaway
Facing mortgage foreclosure is one of the toughest things a homeowner can go through. As the financial landscape shifts, knowledge is power. Foreclosure can be avoided if you work with your mortgage servicer and get help managing your debts. With time and a disciplined strategy in place, you can get on a solid financial footing again.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
FAQ
Can I stop the foreclosure process?
Possibly. The sooner you contact your mortgage servicer, the more options you will have.
How will foreclosure hurt my credit score?
The lender reports each missed payment, and the further behind a borrower gets, the more delinquent they become. The credit score lowers with each report. A foreclosure stays on a credit report for seven years, which makes it harder to apply for other credit lines and loans.
Am I supposed to pay property taxes when my house is in foreclosure?
It’s true that a missed tax payment can also lead to foreclosure proceedings, but it depends on where you are in the process. If you’re working with your lender to get your missed payments back on track to avoid foreclosure, then your escrow account will be replenished and the mortgage servicer will pay your taxes. If you’re in foreclosure and not able to get your payments back on track, paying your taxes won’t help you get your house back. You’re better off working with your lender to put that money toward missed mortgage payments.
Do I have to move out of my house when it is in foreclosure?
The Federal Trade Commission advises staying in the house as long as possible if you’re facing foreclosure. You may not qualify for certain types of assistance if you move out.
Photo credit: iStock/jhorrocks
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
This article is not intended to be legal advice. Please consult an attorney for advice.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
If you’re looking at lower-cost housing options, buying a manufactured home may have come up on your radar. Buying a new manufactured home or an existing one could be a good way to get into a home more quickly and at a lower cost than purchasing a site-built home.
Manufactured homes shed their mobile home and trailer rep in 1976. Since then, manufacturers have touted their quick turnaround times and high-quality materials.
If you’ve ever wondered how to buy a manufactured home, what financing options are available, and whether the titling of a home as real property or personal property makes a difference, read on.
Key Points
• Manufactured homes are built in factories, adhering to HUD standards.
• Average costs are $86,600 for single-wide and $156,300 for double-wide models.
• Various financing options are available, including personal loans and chattel mortgages.
• Land must be purchased or leased, with considerations for regulations and suitability.
• Regular maintenance can significantly extend the lifespan of a manufactured home.
What Is a Manufactured Home?
A manufactured home is built in a factory on a permanent steel chassis.
They often come in one, two, or three sections: single-, double-, or triple-wide. They must be able to fit on the highways, so the sections are limited to 16-foot widths in most states.
Manufactured homes are not modular homes; nor are they considered mobile homes anymore. Manufactured homes are built entirely in a factory, whereas the components of a modular home are taken to the land and put together on-site. The two types of housing also follow different building codes.
Mobile homes are considered those built before June 15, 1976, when the U.S. Department of Housing and Urban Development (HUD) implemented construction and safety standards for these structures. After that date, manufactured homes were required to follow the HUD Code. A manufactured home will have a “HUD tag,” a red metal certification label, on the exterior.
First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.
Questions? Call (888)-541-0398.
Why Should You Buy a Manufactured Home?
Manufactured homes are less expensive than site-built homes or modular homes, which must meet the same state and local building codes that stick-built homes do.
The average sale price of new manufactured homes nationwide was $86,600 for a single-wide and $156,300 for a double-wide as of late 2024, according to the Census Bureau’s Manufactured Housing Survey.
They have quicker build times than site-built homes, too.
Manufactured homes sold as part of a land package may hold their value much like a standard home, depending on upkeep and the local real estate market.
Speaking of land, if you’re a homebuyer and plan to lease the lot under you, beware of rising lot rents. Then again, if you’re looking for investment property, the ability to raise the lot rent could be a big draw.
Process of Buying a Manufactured Home
Buying a manufactured home is different from buying a site-built home. There are a lot of variables that you’ll need to know about.
Getting Financing for a Manufactured Home
Financing a manufactured home generally depends on whether the home will be attached to the land (real property) or consists of just the home (personal property, or chattel).
Financing Just the Home
It is possible to finance the manufactured home apart from the land. In this case, you’ll need to get a personal loan, a chattel mortgage, or dealer financing. A personal loan is unsecured (unlike a mortgage which is secured by your home), but its interest rates may be higher.
Another option is a government-insured home loan like an FHA Title I loan (which has loan limits). These loans are backed by the Federal Housing Administration and available from approved lenders.
Financing the Home and Land
If you’re buying a manufactured home that’s permanently attached to a foundation on its own land, some lenders will finance the purchase with a conventional home loan.
An FHA Title I loan can also be used for just a developed lot or for a home-lot combo. FHA Title II loans are for buying a manufactured home and land whose price is above the Title I loan amount. Title II loans adhere to FHA loan limits, which are based on a percentage of the Federal Housing Finance Agency’s national conforming loan limits for conventional loans.
VA loans, backed by the U.S. Department of Veterans Affairs, are available to eligible borrowers to buy a manufactured home that is permanently attached to the land.
And an option for low- to moderate-income buyers is a USDA loan if the home is in an eligible rural area identified by the U.S. Department of Agriculture.
Note: SoFi does not offer USDA loans at this time. However, SoFi does offer FHA, VA, and conventional loan options.
In your search for a manufactured home, you’ll want to consider:
Manufacturer. Many companies build and sell manufactured homes. Keep your search broad at first, and ask friends and family for referrals. You may also want to keep a spreadsheet comparing the prices, incentives, and inclusions each company provides. Be mindful, however, that while some manufacturers are able to provide comprehensive services, the quality of their homes may be lower than that of another manufacturer that does not provide every service.
Model and layout. Tour models and figure out what you really need. Are there enough bedrooms? Do you prefer a separate kitchen and living room, or is an open layout more your style? Is there adequate storage?
Customization. There are a lot of options when it comes to selecting custom design elements. Would you like patio doors? A fireplace? Separate vanities? The manufactured home builder will have a list of upgrades that you’re able to select from.
Exterior additions. When your home is placed, some exterior elements can make it feel like a site-built home. Porches, garages, and decks are a few examples.
Site. Do some research on what it takes to place a manufactured home on a lot. Do you want a lot in the country with a view? Are you able to pay for the cost to bring utilities to raw land? Would you prefer to lease land? Where you want to place your home will help you select the right one. Your decisions will affect the total cost of a manufactured home.
Buying Land for a Manufactured Home
Buying land comes in three forms:
• Cash. You can buy land with any savings you have on hand.
• Land loan. It is possible to finance land separately from your home, which is also the case with some tiny houses. You’ll have closing costs on both loans if you choose to finance separately.
• Home and land. The easiest route is a manufactured home-and-land loan. Getting loan approval before searching for land or a manufactured home will allow you to see exactly how much you qualify for.
Site Prep
After buying land, it will need to be prepared for your manufactured home. This may include:
• Soil condition tests
• Making a plan for where the manufactured home is to sit
• Clearing the area
• Grading for proper drainage
• Checking the holding capacity for ground anchors
Delivery and Installation of Your Manufactured Home
After your land has been prepared and the home has been built, it can be transported to the site and installed. Your manufacturer will likely coordinate delivery and may be able to help you find contractors to install the manufactured home.
Getting Insurance
Homeowners insurance for manufactured homes usually covers the structure, personal belongings, and any other structures on the property. Some insurers require that a manufactured home be placed on a concrete or block foundation.
The coverage might also include liability insurance, which helps protect your finances if you’re responsible for damage or injury to someone else. A standard policy may not cover earthquakes or floods.
To figure out how much homeowners insurance you need, start by getting enough dwelling coverage to fully replace your home if it needed to be rebuilt. The replacement cost may be higher or lower than the home’s value.
Get matched with a local
real estate agent and earn up to
$9,500‡ cash back when you close.
Pair up with a local real estate agent through HomeStory and unlock up to $9,500 cash back at closing.‡ Average cash back received is $1,700.
Cost of a Manufactured Home
The cost of a manufactured home will vary by size, quality, customizations, and manufacturer. Not including the cost of acquiring and developing land, a new model may range from $80,000 to over $200,000.
There’s that mention of land again. As the Consumer Financial Protection Bureau says, “Manufactured housing is the largest source of unsubsidized affordable housing in the United States, but financing a manufactured home can be costly, especially for borrowers who do not own the underlying land.”
To ease the housing shortage, the Biden administration’s 2024 “Housing Supply Action Plan” aimed to deploy new financing mechanisms for manufactured homes and accessory dwelling units (ADUs). The plan also prodded the Department of Transportation to modify its grant programs to favor cities that adopt zoning rules allowing dense housing and transit-oriented development.
Many states did update their regulations on manufactured housing in 2024 to expand the areas of land available for siting manufactured homes. So if you are considering purchasing a manufactured home, it’s smart to look into state and city regulations that apply to your town before making a decision, as they may have been updated recently.
The Takeaway
Buying a manufactured home is usually more affordable than a site-built or modular home, but it’s helpful to understand all the financing angles and the long-term stability that owning the land underneath you can bring.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
FAQ
How long do most manufactured homes last?
Manufactured homes that are regularly maintained can last for 30 to 55 years, according to HUD.
How do I pay for a manufactured home?
Financing a manufactured home largely depends on whether the home is permanently attached to the land or not. A home that is not may be financed with a personal loan, an FHA loan, a chattel mortgage, or a dealer loan.
How do I cut down on costs for a manufactured home?
The cost of a manufactured home itself could be relatively low. The biggest expenses you’ll likely encounter will be purchasing land and preparing it. If you can find a lot that already has utilities, it may help.
How is a converted shipping container classified?
Shipping containers that are converted into housing units can be accepted as manufactured homes if they are provided with a permanent chassis, are transported to the site on their own running gear, and otherwise comply with the HUD Code for manufactured homes.
Photo credit: iStock/Marje
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
‡Up to $9,500 cash back: HomeStory Rewards is offered by HomeStory Real Estate Services, a licensed real estate broker. HomeStory Real Estate Services is not affiliated with SoFi Bank, N.A. (SoFi). SoFi is not responsible for the program provided by HomeStory Real Estate Services. Obtaining a mortgage from SoFi is optional and not required to participate in the program offered by HomeStory Real Estate Services. The borrower may arrange for financing with any lender. Rebate amount based on home sale price, see table for details.
Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.
HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. SoFi is not responsible for the reward.
SoFi Bank, N.A. (NMLS #696891) does not perform any activity that is or could be construed as unlicensed real estate activity, and SoFi is not licensed as a real estate broker. Agents of SoFi are not authorized to perform real estate activity.
If your property is currently listed with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®.
Reward is valid for 18 months from date of enrollment. After 18 months, you must re-enroll to be eligible for a reward.
SoFi loans subject to credit approval. Offer subject to change or cancellation without notice.
The trademarks, logos and names of other companies, products and services are the property of their respective owners.
A 20-year mortgage is far less common than a 30-year mortgage, but when you want to pay a lower rate and save a substantial amount in interest, it’s worth considering a 20-year mortgage … with a big “if.”
If you can consistently afford the higher mortgage payments.
Get ready to learn all you need to know about 20-year mortgages, including what is a 20-year mortgage and how it compares with a 30-year mortgage. We’ll explore why people choose a 20-year mortgage and the advantages and disadvantages of a 20-year mortgage.
Key Points
• A 20-year mortgage typically offers a lower interest rate and less total interest paid over the loan term.
• A 20-year mortgage allows homeowners to pay off the loan faster and build equity more quickly.
• Monthly payments for a 20-year mortgage are usually higher and may make qualification more challenging.
• A 30-year mortgage provides lower monthly payments and easier qualification for borrowers.
• Choosing between a 20-year and 30-year mortgage depends on financial goals and payment capability.
What Is a 20-Year Mortgage?
A 20-year fixed-rate mortgage is a home loan whose total financing costs are calculated on a repayment term of 20 years.
Homebuyers and refinancers choose their mortgage term. The 30-year fixed-rate mortgage is the most popular. The 15-year fixed-rate mortgage sometimes shares the spotlight.
The 20-year mortgage gets less attention. But a 20-year home loan may be a happy medium for homeowners who want lower monthly payments than a 15-year mortgage but who want to pay off the loan more quickly than 30 years.
First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.
Questions? Call (888)-541-0398.
Why Are 20-Year Mortgages Less Common Than 30-Year Mortgages?
When it comes to a 20-year vs. 30-year mortgage, why don’t more borrowers choose the shorter term? Because the monthly payments are higher.
A 30-year term makes a home more affordable on a monthly basis, even though homeowners will pay more over the life of the loan than they would over 20 years.
Buyers considering a 20-year home loan may need to lower the top end of their house-hunting price range so they can qualify for the mortgage.
In exchange for saving an awesome amount by financing with a 20-year loan, you may have to forgo perfection, buy a starter home, or consider a downsize.
People who choose a 20-year mortgage do so because they will pay much less in interest than they would on a 30-year mortgage. That benefit stems from a shorter term and a lower interest rate.
An amortization table reveals how much interest is paid on a mortgage over the loan term. When you decrease the length of your mortgage in exchange for a higher monthly payment, the savings are substantial.
20-Year Mortgage
30-Year Mortgage
Loan amount
$500,000
$500,000
Fixed interest rate
6.0%
6.25%
Monthly payment (principal & interest)
$3,582
$3,079
Total interest paid
$359,752
$608,289
Total paid (loan amount + interest)
$859,752
$1,108,289
Amount saved
$248,537
It might be shocking to see nearly $250,000 in interest savings by financing a home with a 20-year mortgage.
If you can swing it, good deal! Keep in mind, though, whether you’re a millennial homebuyer or retiree, that a 30-year mortgage may give you wiggle room with your budget if you need it. And you can always pay off a 30-year mortgage early if you make extra payments toward the principal.
20-Year Fixed vs. an ARM
An adjustable-rate mortgage (ARM) may look good to a homebuyer who’s planning to stay put for just a few years. The introductory rate for a conventional ARM, jumbo ARM, or FHA or VA ARM may be lower than that of a fixed-rate mortgage.
Whether you’re interested in a 5/1 ARM, whose rate is fixed for five years and then will adjust once a year, a seven- or 10-year ARM, or any other adjustable-rate loan, you’ll want to know how long you plan to stay in the home and to fully understand the rate adjustments and caps.
These are some of the benefits of a 20-year fixed-rate mortgage:
Fixed payments over 20 years: Your payment will be the same each month for the life of the loan.
Lower interest rate: 20-year mortgages typically have a lower interest rate than their 30-year counterparts. Lenders reward a shorter payoff date with a lower interest rate.
Pay less interest over 20 years: You’ll avoid 10 years of interest by paying on a 20-year loan instead of a 30-year loan.
Pay off mortgage sooner: A 20-year mortgage is scheduled to be paid off 10 years sooner than a 30-year mortgage.
Build equity more quickly: Equity is built faster with a 20-year loan than a 30-year loan. The sooner you can pay more on principal (which a 20-year loan naturally does), the sooner you’ll gain home equity.
Monthly payments still may be affordable: You may find that the payments for a 20-year loan are comfortable and doable.
Disadvantages of a 20-Year Mortgage
Here are some drawbacks of a 20-year loan:
Higher monthly payment: A 20-year vs. a 30-year mortgage will result in a higher monthly payment. This may make it more difficult to qualify for other financing, such as a loan for an investment property or a car.
Harder to qualify for: Because the monthly payments are higher, a 20-year home loan may be harder to qualify for than a 30-year loan.
Lower target price: If you’re in the homebuying process and want to finance your new purchase with a 20-year loan, you may need to shop for a home at a lower price point or in a more affordable location.
Get matched with a local
real estate agent and earn up to
$9,500‡ cash back when you close.
Pair up with a local real estate agent through HomeStory and unlock up to $9,500 cash back at closing.‡ Average cash back received is $1,700.
The Takeaway
If you’re looking for a home loan that could save you a significant amount of money in interest, a 20-year mortgage might be right for you — if you can handle the higher monthly payments without fail. If you need lower monthly payments, a 30-year mortgage may be the better move.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
FAQ
20-year mortgage vs. 30-year mortgage: Which has the better interest rate?
Decreasing the amount of time you repay your loan will help you save on interest costs in a big way. First off, the interest rate you’ll pay is typically lower. Second, your overall interest cost is much lower because you’re avoiding 10 years of interest that you would pay on a 30-year loan.
Is it harder to get a 20-year or 30-year mortgage?
A 20-year mortgage is harder to qualify for because the monthly payments will be higher for the property you want to purchase. If you’re determined to use a 20-year loan, you may find you’ll qualify for a lower purchase amount to get the numbers to work for your monthly budget.
Photo credit: iStock/ArLawKa AungTun
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
‡Up to $9,500 cash back: HomeStory Rewards is offered by HomeStory Real Estate Services, a licensed real estate broker. HomeStory Real Estate Services is not affiliated with SoFi Bank, N.A. (SoFi). SoFi is not responsible for the program provided by HomeStory Real Estate Services. Obtaining a mortgage from SoFi is optional and not required to participate in the program offered by HomeStory Real Estate Services. The borrower may arrange for financing with any lender. Rebate amount based on home sale price, see table for details.
Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.
HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. SoFi is not responsible for the reward.
SoFi Bank, N.A. (NMLS #696891) does not perform any activity that is or could be construed as unlicensed real estate activity, and SoFi is not licensed as a real estate broker. Agents of SoFi are not authorized to perform real estate activity.
If your property is currently listed with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®.
Reward is valid for 18 months from date of enrollment. After 18 months, you must re-enroll to be eligible for a reward.
SoFi loans subject to credit approval. Offer subject to change or cancellation without notice.
The trademarks, logos and names of other companies, products and services are the property of their respective owners.
If you’re interested in living on a houseboat or just pleasure cruising, you’ll want to know the advantages and disadvantages of owning a houseboat.
Here’s a deep dive into the world of houseboats to help you understand what they are, how they work, and whether buying one is the right choice for you.
• Houseboats are designed primarily as dwellings on water, equipped with home-like features such as bathrooms, kitchens, and sleeping quarters.
• They are generally less seaworthy than regular boats and are meant for enclosed waters like lakes and rivers.
• Floating homes differ from houseboats in that they are stationary, lack mobility features, and are often larger and more expensive.
• Houseboats offer unique advantages such as reduced living costs and scenic views, but also have downsides like limited space and ongoing maintenance needs.
• Financing a houseboat is different from traditional home loans, with options including personal loans, marine loans, and using home equity products.
What Is a Houseboat?
A houseboat is a vessel built or modified to function primarily as a dwelling rather than just transportation.
When comparing houseboats to traditional boats, you can expect houseboats to have the features of a home, including one or more bathrooms, sleeping quarters, and a kitchen.
Houseboats, among the less common types of homes, are distinguished from other boats by their intended use as a dwelling.
Depending on how large the houseboat is and how much the owner is willing to invest, houseboats can range from barebones to luxurious.
First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.
Questions? Call (888)-541-0398.
Characteristics of a Houseboat
A houseboat stands out in the fleet of traditional boats.
Houseboats
Regular boats
Built or modified to function primarily as a residence
Built primarily for transportation or recreational purposes
Intended to function as a permanent shelter
Generally designed for transport or temporary accommodations
Less maneuverable than regular boats
Maneuverable and self-propelled in most cases
Expect houseboats to be less seaworthy than boats specifically designed for transportation. The vast majority of houseboats are intended to be confined to lakes, rivers, and small bodies of water, not the open seas.
Houseboat vs. Floating Home
A houseboat and a “floating home” are different. Floating homes are meant to stay in one place, lacking an engine or navigation system. They usually have a floating concrete foundation.They’re generally much bigger than houseboats and cost more.
Even though some houseboats also dock in one place, most can motor to another location when needed or desired.
Houseboat Design
Houseboats may stretch from 20 feet to over 90 feet. A veranda or flybridge may help occupants make the most of outdoor views.
Hull design and materials vary. Here are some styles.
Pontoon: Flat-bottomed boat that’s supported by two to three floats, or pontoons, for buoyancy. This is common houseboat construction.
Full hull: Conventional boat hull with a large bilge that sits partly in the water and offers more space below deck.
Planing hull: Similar design to full hull but is designed to glide on top of the water at speed.
Catamaran hull: Parallel twin-hulled design that joins two hulls of equal size with a solid frame. The wide beam gives it better stability and handling.
Barge: Large flat-bottomed boat designed to handle heavy loads and operate in rivers and canals.
When researching the type of houseboat you want, you’ll want to make an informed choice when weighing livability and seaworthiness.
Pros and Cons of a Houseboat
It takes a special type of person to live on a houseboat. Here are some of the pros and cons of houseboat living to help you decide if you fall into this category.
Pros
• Reduced living costs: The lack of land to maintain means you won’t have to worry about shoveling snow or mowing the lawn. You can also expect lower utility costs due to the square footage, which could be enticing to people wanting to downsize their home.
• Nice views: You can’t get closer to waterfront living. Houseboat living offers the possibility of gorgeous lakeside or riverside views every day you wake up and go to bed.
• Water activities: Depending on the season and local ordinances, you may be able to fish, canoe, and enjoy all the perks of life on the water without having to take extra time off for a vacation.
• Lower rent or mortgage: Compared with the average stand-alone house, a houseboat may cost less to buy or rent.
• Possible tax advantages: Houseboat owners may not have to pay property taxes (although a deeded slip in some areas is considered real property), but they may live in a state, county, or city that imposes personal-property taxes. Also, the IRS says a boat can be your main or secondary residence, entitling you to take advantage of the same tax deductions as the owner of a typical house.
Cons
• Reduced living space: A modest houseboat may be smaller than most traditional homes.
• Marina or HOA fees: If you want to remain moored and plugged into the grid, you’ll need to pay slip fees or homeowners association fees.
• Maintenance: Expect to trade land maintenance expenses for boat maintenance costs. In some cases, you’ll need to find a contractor for repairs or an inspection.
• Lack of permanence: If you intend to sail from dock to dock, you’ll need to make compromises when it comes to having a permanent mailing address or regular friends and neighbors.
How to Finance a Houseboat
Used houseboats start at a few thousand dollars. New houseboats may range from $250,000 to $750,000.
Can you get a mortgage loan for a houseboat? No. But you may be able to get another kind of loan if you have a credit score in at least the “good” range on the FICO® credit rating scale and meet other lender criteria.
Some banks, credit unions, and online lenders offer boat loans. A marine loan broker can help you find and negotiate a boat loan, but the broker fee is often 10% or more of the houseboat purchase price. The loan might require 10% to 20% down. Note: SoFi does not offer boat loans, although it does offer personal loans, which are another financing option. Most personal loans are unsecured, meaning no collateral is needed.
A personal loan is another option. Personal loans of up to $100,000 are offered by a few lenders. Most are unsecured, meaning no collateral is needed.
A marine loan broker can help you find and negotiate financing, but the broker fee is often 10% or more of the houseboat purchase price. The loan might require 10% to 20% down.
If mortgage rates are ebbing, a cash-out refinance can work for some homeowners.
Other homeowners with sufficient home equity can apply for a home equity line of credit (HELOC) or home equity loan and use that money to buy a houseboat. The rate will typically be lower for an equity product using your home as collateral than that for an unsecured personal loan.
What if your credit isn’t good? So-called bad credit boat loans are afloat out there. They come with a high interest rate. Note: SoFi does not offer bad credit boat loans.
Just as you would shop around for the best mortgage loan offer, you will want to compare a number of houseboat financing options.
Finding a Houseboat to Buy vs. Building One
The cost of buying vs. building a house depends on size, location, the cost of labor and materials, and your taste, and the same holds true of houseboats.
Clearly, buying a used houseboat is almost always quicker and more convenient than trying to build one from scratch. However, if you have the knowhow to build your own houseboat, you’ll have much more freedom when it comes to how you want to design things.
If you’re deciding whether to buy or build a houseboat, you’ll want to consider your budget, time, availability, expertise, facilities, and tools.
Also consider how you would transport the houseboat from land to water when it’s done.
As for the question of time, most custom houseboat builds take months, if not more than a year, to complete. It’ll be much faster and easier to jump into houseboat living with an existing houseboat.
The Takeaway
Houseboats are a novel option for water lovers, including downsizers, retirees, and free spirits. Living on a houseboat can be cheaper than in a traditional home, but you’ll want to make sure you understand the advantages and disadvantages of living on a houseboat before committing. If you are ready to take the plunge, two options for financing your houseboat include a personal loan or a HELOC.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit brokered by SoFi.
FAQ
Can you live on a houseboat year-round?
Yes, but you’ll need to compensate for changes in the weather, particularly if the waters where you’re docked tend to freeze during the winter months. This includes ensuring that your houseboat is insulated and heated through the winter.
How long does it take to build a houseboat?
Construction could take 12 to 18 months to complete, depending on whether you’re building a custom houseboat on your own or enlisting the help of professionals.
Can you get a loan for a houseboat?
Yes, but not a traditional mortgage. Options include a boat loan, a personal loan, a home equity loan, and a HELOC.
How does a toilet work on a houseboat?
A marine toilet usually empties into a black-water holding tank until the boat reaches a marina pumping station, or the tank treats the waste and it’s eventually released in a designated discharge area. Noncruising houseboats usually have a hookup that takes out waste through a sewage line.
Photo credit: iStock/wayra
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945. All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee. Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
