Buyer’s & Broker’s Information Guide – Floating On-Water Residences (FOWRs)

Lending Considerations

Financing is available for houseboats (FOWRs and VDUs), but the process is specialized and differs from traditional home loans.

• Pre-Approval is Strongly Advised: Ensure your buyer is pre-approved before writing an offer, and ideally before showing floating properties.
  
  
• Timeline: Allow at least 45 days to close, particularly if a haul-out is required for a hull inspection. If the houseboat has been hauled out within 12 months or has a dive inspection, a 2 to 3-week close is possible if a cash purchase.
  
  
• Valuation & Inspections: Lenders require a marine survey and valuation, and may require additional documentation (e.g., dive or haul-out reports). Lenders may also require an appraisal if you own the moorage.
  
  

Recommended Lender for FOWRs & VDUs

Sound Community Bank
📍 Specializing in Houseboat & Floating Home Financing

David Raney
EVP | Chief Banking Officer | President’s Club Member
📧 David.Raney@soundcb.com
📞 206-436-8574
📠 866-305-2376
🌐 www.soundcb.com
NMLS #646164

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Closing Agents Experienced with FOWRs

R. Shawn Griggs, Attorney at Law

📍 130 Nickerson Street, Suite 201, Seattle, WA 98109
📧 shawn@griggs-law.com
📞 206-745-3805
📠 206-745-3806
🌐 www.griggs-law.com

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Assemble Law – Forrest Carlson

📍 200 1st Ave W, Suite 104, Seattle, WA 98119
📧 forrest@assemblelaw.com
📞 206-631-9575
🌐 www.assemblelaw.com

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Inspection Process:

Houseboats / Floating On-Water Residences (FOWRs) – Important Inspection & Service Information

Marine Survey Requirements:

FOWRs (Floating On-Water Residences) and VDUs (Vessels with Dwelling Units) must be inspected by a qualified Marine Surveyor. This inspection includes a full valuation for both the lender and the insurance provider.

• Unlike residential property inspections, the entire marine survey report is shared with the lender and insurer.
  
  
• Either party may choose not to finance or insure the property based on findings in the report—especially if major concerns are noted.

Hull Inspections:

Hull inspections are a critical part of the process.

• A haul-out may be required to inspect the hull, particularly if the vessel has a wood/fiberglass-over construction.
  
  
• If the FOWR/VDU has a steel or aluminum hull—or if a recent haul-out or dive inspection has been completed—only a dive inspection or proof of recent inspection may be acceptable.
  
  
• Always confirm requirements with the lender and insurer before proceeding.

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Recommended Marine Surveyor

Eric Hunter
Principal Marine Surveyor, Tasman Boat Company
📧 sv.tasman@gmail.com
📍 7001 Seaview Ave NW, Suite 160-3, Seattle, WA 98117
📞 206-470-9384

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Recommended Dive Inspector

Keith Landry
Field Operations Manager, Aqua Dive Services, LLC
📧 info@aquadiveservices.com
📍 9622 Aurora Ave N, Suite B, Seattle, WA 98103
📞 206-782-0157
🌐 AquaDiveServices.com

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Tow Services

Seller(s) are responsible for the cost of towing to and from the slip.

Fremont Tugboat Company Inc.
📞 Erik Freeman – 206-632-0151
📧 capteof@aol.com

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Shipyard – Hull Inspection / Haul-Out Services

Canal Boatyard LLC
📍 4300 11th Ave NW, Seattle, WA 98103
📞 206-784-8408 | 📠 Fax: 206-784-0206
📧 minkov@canalboatyard.com
🌐 www.CanalBoatyard.com

💡 Note: For pricing, visit the website. You’ll need the vessel’s length (in linear feet) for cost estimates. The round trip, power washing, and environmental fees are paid by the buyer.

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Specialized Insurance Provider for Houseboats

Jeremy Paulus
Fathom Insurance Agency
📍 1455 NW Leary Way, Suite 400, Seattle, WA 98107
📧 Jeremy@FathomIns.com
🌐 www.FathomInsurance.com
📞 206-801-0906 | ☎️ 877-339-0056

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Important Notes Regarding FOWRs (Floating On-Water Residences, also known as Houseboats):

• Classification: FOWRs are considered personal property, not real property.
  
  
• Title Status: FOWRs do not have a traditional title like real estate does.
  
  
• Seller Disclosure: Since FOWRs are personal property, a Seller Disclosure is not required; however, we request that the sellers provide a Seller Disclosure of the property.
  
  
• Inspections & Valuations: Buyers must hire a marine surveyor to conduct inspections and provide valuations (appraisals).
  
  
• Hull Inspection Requirements:
  
  
  
  • Buyers may be required by their lender and/or insurance provider to haul the FOWR out of the water for a full hull inspection.
    
    
  • This is especially likely if the hull is wood-covered with fiberglass.
    
    
  • For hulls made of aluminum, steel, or concrete, a dive inspection may be acceptable instead.
    
    
• Inspection Strategy: It is strongly recommended that buyers first conduct an in-water inspection before incurring the cost of hauling the FOWR out of the water. I also highly recommend that all costs of the haulout be clearly outlined in the contract before hauling the houseboat out of the water.
  
  
• Inspection Reports: Both the lender and the insurance company will require a complete copy of the marine survey/inspection report and diver report.
  
  
• FIRPTA: FIRPTA (Foreign Investment in Real Property Tax Act) does not apply to personal property located in rental moorage.
  
  
• Tax Assessment & Closing:
  
  
  
  • All FOWRs will close through the King County Personal Property Tax Roll as a floating home.
    
    
  • Property taxes will be assessed at approximately 1% of the purchase price, typically during the next assessment cycle or once the King County Assessor has had an opportunity to evaluate the FOWR.
    
    
  • Some properties may already have a King County Tax ID, in which case taxes are already being assessed.
    
    
  • This assessment process follows rules implemented in 2017 by the Department of Licensing for all floating residences that are not classified as vessels and were originally built as overwater homes.
    
    
• VDU Exception: A small number of FOWRs that maintain vessel status may close as a VDU (Vessel with Dwelling Unit) rather than as personal property.

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Additional items stay with a FOWR (houseboat) - All fenders, mooring lines, and propane tanks should remain with the houseboat at closing. Add these to the contracts.

All sellers should do the final black water (waste) pump out at closing and buyers must establish a pump-out service plan by closing.

All buyers typically arrange a moorage lease with the marina after the inspection has been accepted and waived as a contingency.

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Helpful Links for Buyers and Brokers‍

(Please verify all information independently. If you have questions, feel free to contact me directly.)

• RPZ – Restricted Parking Zone Permits
  Learn about permit requirements and eligibility for street parking in designated residential zones.
  https://www.seattle.gov/transportation/permits-and-services/permits/parking-permits/rpz-permits
  
  
• Seattle DCI – Floating Residences Regulations
  General code guidance for floating homes, floating on-water residences (FOWRs), and vessels with dwelling units (VDUs).
  https://www.seattle.gov/sdci/codes/common-code-questions/floating-residences
  
  
• Client Assistance Memo (CAM) 229A – Definitions of Floating Residences
  Detailed explanation of the different types of floating residences and their classifications.
  http://www.seattle.gov/DPD/Publications/CAM/Tip229A.pdf
  
  
• Short-Term Rental Rules for Floating Residences
  Review specific regulations regarding short-term rentals of FOWRs and other floating properties.
  https://www.seattle.gov/sdci/codes/common-code-questions/floating-residences#:~:text=Rules%20to%20Follow
  
  
• King County Assessor Tax ID - Look up and Email Contact: propertytax.customerservice@kingcounty.gov https://kingcounty.gov/en/dept/executive-services/buildings-property/treasury-operations/property-tax

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___________________________________________________________________________

Buyer/Brokers: Please verify all information independently.

If you have any questions, don’t hesitate to reach out:
📧 Linda@SpecialAgentsRealty.com
📞 206-419-0065

Linda M. Bagley

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