Refinance property in US?

Question

Has anyone successfully refinanced a property in the US?  I'm a Canadian and I'm hoping to refinance some of my properties in Florida to purchase additional investment properties.  I have cash available but I'd rather use the equity I have available.

I've talked to TD Bank but their options are very limited, with lots of requirements like 5 trade lines in Canada for at least 2 years and I believe they only allow 2 HELOCs or 1 mortgage.  RBC Bank will only use owner occupied residential properties as collateral.

Also, are rates so high for non-residents that it's not worth it?

Anybody know?

Chris Popov · Answer

One thing that puzzles me, is it possible to have credit history as non resident? I do have a TIN, bank accounts, credit card, paying back a loan every month and a history of rental income. However Credit Agencies want the Social Security number which is only for residents.

Jason Million · Answer

@Moses W.  @Chris Popov There is definitely financing options aviable to non-residents and no US credit needed.  Most big banks don't want anything to do with it or have so many overlays it's impossible to qualify.  It more of a niche lending area.   Let me know if you have any questions!

Sean Carroll · Answer

@Moses W. it doesn't hurt to pick up the phone and ask. If they say no then you're back to square one. Trying calling 10 big US banks and 10 local banks.

Moses W. · Answer

@Sean Carroll: I've contacted a couple of large banks that are Canadian owned and they either don't refinance investment properties or they have too many demands.  I haven't checked with local banks yet but being a Canadian, I'm not sure if they would even talk to me.  I'm looking to invest in the Cleveland area and KCMO.

Copelon Kirklin · Answer

Yes, there are several options out there. For us and most alternative lenders, when it comes to foreign investors, we can finance your deals but it's usually at a lower LTV than normal. I'm open to discussing in more detail. Just shoot me a PM.

Copelon Kirklin · Answer

Alternative financing may not always apply to flipping and/or short-term. For us, we can go as far as 3 years or even 8 years for a fixed rate on a 30yr amortization. So it's not as short as the typical hard money loan but also not quite as long-term as conventional may offer.

Moses W. · Answer

@Copelon Kirklin I'm open to alternative financing for sure.  I'm just not sure where to look for it and whether being a Canadian will make it harder.  I see some ads in the marketplace offer seller financing.  I suppose this is one option.

Chris Popov · Answer

Yeah, I am not flipping or doing anything short term, so it has to be long term finance.

Copelon Kirklin · Answer

@Moses W. and @Chris Popov are you only seeking conventional financing? I ask this because the alternative space may be able to accommodate you, albeit slightly more expensive.