Vancouver , Bc · Member since 2017 · 73 posts · 13 votes
Hi everyone
I'm fairly new to BP and I'm looking for advice on how to secure a loan to invest in the USA. I live in Canada and I own 1 single family home in Arizona. I'm looking to add a few more to my portfolio.
I have about 200k usd cash also.
I'd like to know if it's possible for me to get a traditional loan in the USA at a decent rate.
I have spoken to a broker and this is what I'm being offered
1 Fixed Rate ARM
Rate at 25% down would be 7.99%
Rate at 30% down would be 7.745%
Rate at 35% down would be 7.615%
Rate at 40% down would be 7.495%
Rate at 45% down would be 7.365%
These seem high compared to my 3.2% heloc I have in Canada, is this a good rate in the USA?
I live in australia but have four properties in Phoenix including two apartment blocks with 7 units each. I am also interested in refinancing a $250k hard money loan and would be interested in contacting your lender to see if they are interested. In fact any lender contacts would be welcome.
I have had one offer but too much up front and a higher interest rate than you are showing.
Do I need to wait 2 years of seasoning if the home is under my personal name? I've ownrd this home for 6 months. What if I can provide a year long lease would I be able to use this remt as income?
@Federico Gutierrez Not necessarily, this is still a single member LLC, and you are the principal of the LLC, as long as you have a track record, you are good.
@Federico Gutierrez Not necessarily, this is still a single member LLC, and you are the principal of the LLC, as long as you have a track record, you are good.
Not necessarily on getting a loan or requiring a ssn?
Form an LLC and transfer the properties to that LLC. This could be a single member (you) LLC. Now you have a US entity that owns the property..
So my US entity would be able the secure a US loan? Don't I still require a ssn for the loan?
Corporations are entities, just like people and have ESNs. If you plan to go this route please engage a competent lawyer to setup your corporation to meet your ultimate goals.
@Akash Y. just owning a personal home does not qualify you as a landlord or investor, you still need 2 years experience as one!
I have a basement in my primary home that's been rented for 8 years. I also had a house that I just sold after 15 years of being rented yet to tear lease. This is where my funds have come from to invest into the USA.
Through the mortgage broker I work with, we have access to a much more competitive program for Canadian nationals, for properties in the State of Washington. Let me know if you have any questions I can help answer.
I'm not aware of any special programs for Canadians as opposed to any other foreign investor.
Our experience in Jacksonville, FL has been that foreign investors can typically get loans with rates ranging from 8-11% depending on the documentation that you can provide. This is compared to conventional rates we're seeing of about 4.5-5% for 25% down with local lenders.
I have not found a good way for a foreign investor to get a rate similar to American investors yet and would be very happy if anyone could share with me a strategy that has worked.
The closest thing I found was the idea of opening a land trust in an American's name with the American listed as a trustee. The American would take out the financing in the trust's name. The American would then open a joint LLC with the foreigner and change the trustee to the LLC. This would give control of the asset to the LLC and wouldn't trigger the loan. I have not done this yet but that is the best we have come up with so far.
@Akash Y. I have been told by Canadian brokers that RBC does loans based off your Canadian credit and income. If you have an US income and credit history there is a chance at conventional your situation will vary on if that is possible.
@Joey Hamaoui I have a source here in FL that will lend in the mid to upper 7's for 5/1 ARMs if they can show solid credit history outside the US. Still higher but available.
@Joey Hamaoui 5/1 ARM is a fixed rate for 5 years then adjust every year after that. And yes those are about the rates lower LTV can get a little better. Foreign national are the highest risk rates with documents higher than housing events or bank statement products.
Thanks @Account Closed it is very helpful. Do you have any fixed rate products for foreign nationals? Does it make any difference if the foreign national partners with an American?