Buying Waterfront Real Estate

Justin Kelly
April 13, 2023

A waterfront real estate is a dream for many people, offering the opportunity to wake up to the soothing sound of waves and enjoy breathtaking views of the water. However, buying and financing a waterfront home can be more complex than a typical real estate transaction. In this blog, we'll cover the key considerations when buying and financing a waterfront home.

1. Location, location, location

The first and most important consideration when buying a waterfront home is location. Factors such as the view, accessibility, and water quality can all affect the property's value and resale potential. It's also important to research the area's zoning laws and any potential restrictions on the use of the water, such as boating or swimming.

2. Hire an experienced waterfront real estate agent

An experienced real estate agent who specializes in waterfront properties can help you navigate the complexities of buying a waterfront home. They can provide valuable insights into the local market, help you identify suitable properties, and negotiate on your behalf.

3. Get pre-approved for a mortgage

Before you start house hunting, it's a good idea to get pre-approved for a mortgage. This will give you an idea of how much you can afford and help you avoid wasting time looking at properties that are outside your budget.

4. Consider the additional costs of waterfront living

Owning a waterfront home can come with additional costs, such as flood insurance, seawall maintenance, and dock fees. Consider the corrosive nature of saltwater on exterior features like lighting and paint which will need to be maintained or replaced more often.  It's important to factor these costs into your budget and ensure that you can afford them on an ongoing basis.

5. Work with a lender who specializes in waterfront properties

Not all lenders are willing or understand how to finance waterfront homes, as they can be considered higher risk due to the potential for natural disasters and erosion. It's a good idea to work with a lender who specializes in waterfront properties, as they will have a better understanding of the unique challenges and considerations you will face.

6. Consider a waterfront-specific appraisal

When financing a waterfront property, the lender will require an appraisal to determine the property's value. However, waterfront properties can be more complex to appraise due to their unique location and features. It's a good idea to consider a waterfront-specific appraisal to ensure that the property is accurately valued. Due to appraisal independence laws, you will need to work with a lender that understands this specific need to ensure you have a competent appraiser selected for the job.

7. Explore your financing options

There are several financing options available for buying a waterfront home, including conventional mortgages, FHA loans, and VA loans. It's important to explore your options and choose the one that best fits your financial situation and goals.

Making Your Dream of Owning a Waterfront Home a Reality

In conclusion, buying and financing a waterfront home requires careful consideration and planning. By working with an experienced real estate agent and lender, and taking into account the unique challenges of waterfront living, you can make your dream of owning a waterfront home a reality.

CPF Mortgage is a Florida based company and assists with financing on many waterfront homes and the financing that is required for this type of transaction.

You can contact us through our website or call 727-263-3146 for further assistance. 

For more tips and insights into the mortgage process, check out our other  blogs and videos!

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Christopher Paul Financial, LLC dba CPF Mortgage is a Florida mortgage lender NMLS 222883, Florida state license MLD929, Colorado registered mortgage company NMLS 222883, licensed Tennessee mortgage lender NMLS 222883, and Georgia Residential Mortgage Licensee NMLS 222883. The main office is located at 10710 State Road 54, Ste. C101, Trinity, FL 34655. All loan approvals are credit driven, and all decisions are based on underwriting credit approvals. All rates, terms, and programs are subject to change without notice. Borrowers should consider their options carefully when choosing a loan program.
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