Where are my fellow Canadians getting financing on US properties?

Canadian Real Estate
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Where are my fellow Canadians getting financing on US properties?

Brianne H.
Investor · Calgary, Alberta · Member since 2016 · 168 posts · 123 votes

Hi, I'm ready to start buying BRRRRs in the US, but I'm trying to get my financing in order first. As an international borrower, where are you getting financing from? US banks? If so, what sort of rates and terms are you looking at? I haven't found any Canadian banks willing to lend on US property as they aren't able to place a lien if needed, yet I seem to remember hearing of Canadian banks financing in the US. Thanks!

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George DespotopoulosBusiness Member
Lender · New York, NY · Member since 2016 · 936 posts · 287 votes
5y

Hey @Brianne H. -- @Jonathan Leblond mentioned us above in his post. Happy to connect and see if we're a fit. Foreign nationals can qualify for both short & long-term financing, you don't need a US credit score/report. Big emphasis will be placed on your experience and the numbers on the deal. I would expect rates in the 9% - 10.5% range for 12 month bridge loans and 5% - 6.75% for 30 year fixed. Both will require a down payment of around 25% - 30% but it's very much deal/property driven so best to reach out to any lender to discuss. 

MoFin Lending4.9152 Reviews
WebsiteView Page
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  • Gretchen Guarino
    Real Estate Agent · Buffalo, NY · Member since 2021 · 35 posts · 13 votes
    5y

    Hi Brianne, there are private lenders in the U.S. that will lend to foreign nationals/corporations. You are welcome to connect/message me directly. 

    0Reply
  • Michael Wong
    Investor · Vancouver, Canada · Member since 2017 · 25 posts · 16 votes
    5y

    Hi Brianne,

    I haven't looked too deeply into US investing yet, just window shopping, however, I recall seeing this from RBC.

    https://www.rbcbank.com/cross-...

    Let us know how it goes.

    0Reply
  • Brianne H.
    OP
    Investor · Calgary, Alberta · Member since 2016 · 168 posts · 123 votes
    5y

    Thank you @Michael Wong, I was looking into a few of the Canadian banks today and getting some odd responses. Their initial response was sorry no we don't lend on US properties, and then after some digging and approaching them again with webpages that indicate they do, they came back and said you'll need to talk to our US locations about that - definitely going to pursue it, but just seems weird they wouldn't be wanting to promote their financial services. 

    0Reply
  • Charles Carillo
    Rental Property Investor · North Palm Beach, FL · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    @Brianne H.

    We work with a few lenders that lend to foreign investors. DM ME.

    0Reply
  • Jonathan Leblond
    Albany, NY · Member since 2019 · 60 posts · 25 votes
    5y

    I would not put a lot of hope on Canadian bank financing for your project in the US. First, they will probably ask for a huge cash down, second, they won't probably lend on a BRRRR or any apartment buy and hold type of project, and third, you will probably lose a lot of time setting the loan and getting everything right. Unless you want to buy a condo for yourself in Florida... I suggest you look somewhere else.

    Charles is right, many lenders will lend to foreigners in the US. If you have someone over there who can get a conventional loan, you will get the best rate. Otherwise, for maybe 1% to 3% higher rate you will find financing I'm sure. I called and emailed approximately 30 different lenders since the last 2 weeks and many were opened to finance Canadians. But everything comes with a cost! Good luck

    2Reply
  • Brianne H.
    OP
    Investor · Calgary, Alberta · Member since 2016 · 168 posts · 123 votes
    5y

    @Jonathan Leblond thanks! Yes so far I'm finding Canadian banks would only be willing to lend on a vacation home. Are you finding it's the smaller local banks that are more open to foreigners, or private lenders? 

    0Reply
  • Jonathan Leblond
    Albany, NY · Member since 2019 · 60 posts · 25 votes
    5y

    Hi @Brianne H

    I did called many of them and here is a quick list of those I think would work with foreigners. Some other would probably be good too but a lot of phone calls are required to find the good fit. Here is the list : (Mofin Lending), (Express capital financing or Mortgage), (Visio lending), (Finance of America), (Alpha capital solution). Good luck in your search and let us know if you find something that works!


    1Reply
  • Account Closed
    Member since 2021 · 237 posts · 153 votes
    5y

    @Brianne H.

    Build a relationship at a big 5 that has an American division. TD for example. Then they can use your Canadian credit history to qualify you.

    1Reply
  • George DespotopoulosBusiness Member
    Lender · New York, NY · Member since 2016 · 936 posts · 287 votes
    5y

    Hey @Brianne H. -- @Jonathan Leblond mentioned us above in his post. Happy to connect and see if we're a fit. Foreign nationals can qualify for both short & long-term financing, you don't need a US credit score/report. Big emphasis will be placed on your experience and the numbers on the deal. I would expect rates in the 9% - 10.5% range for 12 month bridge loans and 5% - 6.75% for 30 year fixed. Both will require a down payment of around 25% - 30% but it's very much deal/property driven so best to reach out to any lender to discuss. 

    MoFin Lending4.9152 Reviews
    WebsiteView Page
    2Reply
  • Brianne H.
    OP
    Investor · Calgary, Alberta · Member since 2016 · 168 posts · 123 votes
    5y

    Thank you @Jonathan Leblond! @George Despotopoulos I will message you, thanks!

    2Reply
  • Jason Shackleton
    Investor · Ontario · Member since 2015 · 486 posts · 250 votes
    5y

    Hey @Brianne H. I am a canadian investor too. I know of a lender that will do this. As stated above this is private money rates for foreign investors. Feel free to reach out! Where are you located in Canada?

    All the best,

    Jason

    0Reply
  • Brianne H.
    OP
    Investor · Calgary, Alberta · Member since 2016 · 168 posts · 123 votes
    5y

    Hi @Jason Shackleton, I'm just outside of Calgary. I'll message you!

    0Reply
  • Johnson Hoang
    Rental Property Investor · Toronto, ON · Member since 2019 · 8 posts · 3 votes
    5y

    @Brianne H. I was in the same shoes as you a year ago. I did not have any issues with RBC trying to get financing on US investment properties as a Canadian. They use your credit history in Canada and can lend up to 4 units. DM me if you're still looking for solutions, perhaps I can refer you.

    If you're looking for something larger than 4 units, I can refer you to a mortgage broker who is Canadian friendly. 

    2Reply
  • Jay Roberts
    Member since 2021 · 5 posts · 2 votes
    4y
    Quote from @Johnson Hoang:

    @Brianne H. I was in the same shoes as you a year ago. I did not have any issues with RBC trying to get financing on US investment properties as a Canadian. They use your credit history in Canada and can lend up to 4 units. DM me if you're still looking for solutions, perhaps I can refer you.

    If you're looking for something larger than 4 units, I can refer you to a mortgage broker who is Canadian friendly. 

    Hey @Johnson Hoang, I am located in Montreal and looking for financing as well, would you be willing to refer me to that mortgage broker?

    0Reply
  • Johnson Hoang
    Rental Property Investor · Toronto, ON · Member since 2019 · 8 posts · 3 votes
    4y
    Quote from @Jay Roberts:
    Quote from @Johnson Hoang:

    @Brianne H. I was in the same shoes as you a year ago. I did not have any issues with RBC trying to get financing on US investment properties as a Canadian. They use your credit history in Canada and can lend up to 4 units. DM me if you're still looking for solutions, perhaps I can refer you.

    If you're looking for something larger than 4 units, I can refer you to a mortgage broker who is Canadian friendly. 

    Hey @Johnson Hoang, I am located in Montreal and looking for financing as well, would you be willing to refer me to that mortgage broker?

    Hey Jay, sent you a DM.

    0Reply
  • Alex Talcott
    Attorney · Durham, NH · Member since 2019 · 292 posts · 126 votes
    4y

    American JV or GP partner!

    0Reply
  • Johnson Yu
    Rental Property Investor · Cincinnati, OH · Member since 2020 · 52 posts · 25 votes
    4y

    Hey @Brianne H.

    Fellow Canadian here as well, recently just closed on a Duplex, be happy to share more, DM me!

    0Reply
  • Claudia B.
    Investor · Canada · Member since 2022 · 3 posts · 0 votes
    4y
    Quote from @Johnson Hoang:

    @Brianne H. I was in the same shoes as you a year ago. I did not have any issues with RBC trying to get financing on US investment properties as a Canadian. They use your credit history in Canada and can lend up to 4 units. DM me if you're still looking for solutions, perhaps I can refer you.

    If you're looking for something larger than 4 units, I can refer you to a mortgage broker who is Canadian friendly. 


     Hi Johnson!  I've used RBC too in the US and trying to figure out what else I can do.  Would you be able to refer me to this broker who may be able to assist with more than 4 units?  Appreciate it!

    0Reply
  • Claudia B.
    Investor · Canada · Member since 2022 · 3 posts · 0 votes
    4y
    Quote from @Jason Shackleton:

    Hey @Brianne H. I am a canadian investor too. I know of a lender that will do this. As stated above this is private money rates for foreign investors. Feel free to reach out! Where are you located in Canada?

    All the best,

    Jason


     Hi Jason!  Fellow Ontarian here! Wondering if you'd be open to share the details of your contact?  I will message you!

    0Reply
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