Financing for foreigners buying in the USA

12 Replies

What is the minimum down payment required if you are a non-US resident? I have been looking into US turnkey properties but am getting the impression that my only option is to rely on non-recourse lending. This would require a minimum of 25%- 30% down and the interest rate is often very high - minimum 8%.

I am a Canadian resident and was hoping to obtain conventional financing through a Canadian bank with operations in the US. Royal Bank of Canada has such an option. What I was thinking of doing was to put  a 10% down payment on a US turnkey property and finance the rest of it with a conventional mortgage.

Is such an option even possible? and what restrictions are there exactly for foreigners?

I feel the non-recourse lending route makes the cost of investing far too high.

For Canadians, the only bank who will lend at conventional rates and down payment is TD Bank.  They will do one loan at 20% down, with rates at 4-4.5%.  You'll not find anyone to do 10%.  BMO and RBC will only do 35%-40% down.  Oh and the property must appraise >$100K.  

@Chad Urbshott is correct. 

I am also a Canadian from Toronto and getting conventional financing is a mere wishful thinking in the US. The best I could get is 35% down and 7.25% amoritzed for 30 years...

And this lender will only lend for properties in Kansas City.....

Every other lender I met told me 40% and above but for less tenors.

You may go the TD way.....Looks like the closed option but the minimum is 100k

my one cent!

Meant "closest " option...

Pardon my typo...

We have a lender who will do 25% down or less, 30yr loan fully amortized, 7.75% rate. 

Will lend in several markets.

Originally posted by @Chad Urbshott :

For Canadians, the only bank who will lend at conventional rates and down payment is TD Bank.  They will do one loan at 20% down, with rates at 4-4.5%.  You'll not find anyone to do 10%.  BMO and RBC will only do 35%-40% down.  Oh and the property must appraise >$100K.  

 I've heard the process can be lengthy as well and the property needs to be in a market their sister/affiliate bank serves.  

@Curt Davis  Is your lender a private lender and do they do commercial residential loans?  PM with more details.  Thanks.

Argh .. this is bad news.

Has any Canadian been able to make something work despite the high interest rates? I am just crunching numbers right now and things do not seem to work out.

Unfortunately, the Canadian dollar is trading at an 11 year low which makes conversion difficult.

@William Wong - Might be too late into the US Real Estate Game. Unless you have some compelling reason to go there. Have strong network of US investors, Boots on the ground partnership etc.

@William Wong Foreign National loans for COMMERCIAL PROPERTIES are typically anywhere from 50% to 75% loan to value (exceptional strong 80% LTV). The loan to value, rate and terms will depend on how much you can provide of the following:

US bank account
Liquid assets
Credit
US Credit Score above 680
Own US Property
US Tax Returns
Identified Property Management Company
Some lenders require property to be in an area that has a population of 100,000
Green card 
Loan amount typically $750K+

Hopes this helps.

  

Hi my Name is Jo Ann Lapin with Hanover Mortgage Company. We had an investor looking to take cash out of a property he owns here in San Diego CA earlier this year to develop another property for ground up property in San Diego. He was had a real hard time getting a loan from any bank and finally had to access private capital. My experience with Foreign National's with no tax returns filed here in the States and even having a established credit is a no go. He did state that he found a bank and after giving all of his paperwork to the LO and ordering an appraisal they then asked for more paperwork that he just did not have. Private funds have historically been available  as another option.

New to the forum and my experience has mirrored the same as the others.

I am a Canadian trying to buy a house in North Carolina and have met with closed doors regarding financing in the States.

Considering the low exchange rate, I wanted to buy with the lowest down payment possible and then pay off more when the dollar rebounds.

I have only found 30% down payment with minimum borrowing of $100,000 at a rate of 9.25%. All banks, credit unions and 2 mortgage brokers were unsuccessful until I found another mortgage broker who could secure this option for me. It is a private equity lender.

Needles to say, I am still looking for a better option. We have a significant down payment but don't want to use it until the dollar is higher.

We've been working at this for months and found the perfect property which can probably be purchased for $90,000 to $100,000.

I had no idea when we started the process the financing in another country was so hard to obtain. 

So, we're still looking. Wish us luck!

Originally posted by @John Turner :

New to the forum and my experience has mirrored the same as the others.

I am a Canadian trying to buy a house in North Carolina and have met with closed doors regarding financing in the States.

Considering the low exchange rate, I wanted to buy with the lowest down payment possible and then pay off more when the dollar rebounds.

I have only found 30% down payment with minimum borrowing of $100,000 at a rate of 9.25%. All banks, credit unions and 2 mortgage brokers were unsuccessful until I found another mortgage broker who could secure this option for me. It is a private equity lender.

Needles to say, I am still looking for a better option. We have a significant down payment but don't want to use it until the dollar is higher.

We've been working at this for months and found the perfect property which can probably be purchased for $90,000 to $100,000.

I had no idea when we started the process the financing in another country was so hard to obtain. 

So, we're still looking. Wish us luck!

 How did it go  John?

Interested on reading what you found. Thanks. 

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