Quote:
Originally Posted by codeman671
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.
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Good point on the equity piece, 20% down is the bare minimum for a second home as a general rule, they can get even more needy if it's seasonal or if the value of the house is out of the value percentage skew versus the value of the land. In other words if the value of the building is to little of the overall land and building package price that can set off red flags.
If it were me I would worry about securing the property first and worry about buying a boat and improvements later. In fact your friend may find out quickly that spending big bucks on an island boat isn't necessarily a good idea. Whatever boat he/she gets will inevitably be used not just for pleasure but also as a freight/trash hauler. Not necessarily something you'd want to do with a 50K boat. Plus having two boats is really ideal, when one breaks you have an alternative way off the island.