Mortgage Home Financing for Canadians buying in the United States is back!!!

Since one of the last blog post on my site from June 2007  “Buying a second home in the United States as a Canadian” things in the mortgage industry have changed drastically.  Along with all the changes and tightening of  the lending guidelines Loan Programs for Foreign Nationals buying Real Estate in the US have either completely disappeared, or the few programs remaining have down payment requirements of at least 50%.  

But now borrowers from Canada with a strong profile and no credit blemishes and significant reserves have the option to get a mortgage in the US with 35% down.

Yes, there are still a couple of hoops to jump through:

• Non US citizen with a valid passport and visa
• Purchase & rate and term refinance; no cash out
• Up to 65% LTV max
• Up to 55% LTV on rate/term refinance
• Max $650,000 loan amount
• Standard Debt to Income Ratios 35/45
• Borrowers must pass OFAC’s SDN list
• Borrowers must show a minimum of liquid reserves for 24 months Principal and Interest, 12 months reserves must be held in a US Bank
• 90 days seasoning requirement for all assets. Can be domestic or foreign.
• Self employed borrowers require a letter from an accountant/CPA verifying income figures for the last two years and providing a year to date income figure.
• Borrower’s who are politically exposed (PEP) are ineligible
• Salaried borrowers must provide a letter from the employer stating their current monthly salary and a current valid pay stub for a two year look-back. Bonus income may only be used with a 2 year history.

Finally there is an option available for our Canadian and other Foreign friends who would like to purchase a second or vacation home in sunny Arizona without having to have to pay all in cash.

Any Questions?