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Home Loan Options For Canadians Moving To Florida
Many people are looking to move to the sunshine state, certainly not least are the Canadians. It's a great place to live and work – but it's important to realize that you will be applying for a home loan as a non-resident in a different way than you would if you were a U.S. citizen. In addition, the number of options is not as wide as for other home loans because usually, new residents in the U.S. use Fannie Mae or Freddie Mac loans, which offers significantly lower rates.
However, there are still several options available for people who want to get a home loan when moving from Canada to Florida. Here's what you need to think about before you start looking for a home.
What To Do Before You Start Looking For A Home As A Canadian Moving To Florida
Florida continues to see high demand for homes from foreign nationals, specifically Canadian's looking to purchase a home. Generally, there are three types of purchasers, Canadians looking for a second home, Canadians looking for an investment property to rent, or Canadians looking for permanent residency.
When starting to look for a new home, ask yourself, how many months out of the year will I be living in Florida, and do I plan on renting the home when I'm not there? The answer to these questions will help determine your budget and financing.
Do you have a valid green card and social security card from the US? If so, you may qualify for a variety of loans not available to foreign nationals. If not, don't worry, there are lots of loan programs available for foreign nationals.
Do you plan on working full-time while living in Florida? Non-permanent resident aliens can qualify for a mortgage if they are using the home as their primary residence. You also need to provide a valid Social Security Number and a work permit, Employment Authorization Documentation. A social security card cannot be used as proof of eligibility to work.
Now that you have an idea of what you want from the property, it is time to talk to a lender about loan options to find out how much you can afford!
Investment Properties & Financing
The easiest way to buy a home in Florida if you are Canadian is to purchase an investment property. If you rent the property for the year, the only financial verification is to verify the income from renting the property is higher than the mortgage, association fees, and taxes. The appraiser will determine a rent schedule and you can borrow against the future income from the property.
This is available to all foreign nationals. You do not have to be a citizen to qualify for this type of loan.
Purchasing A Home In Florida As A Second Home
If you don't plan on renting your new home, you will need to verify proof of funds. This means we are going to need to document 2-years of tax returns, paystubs, account statements for assets, liabilities, banks statements, and a variety of other financial documentation. As a foreign national, you will need more money down and your rates are going to be a little higher than the advertised rates for a US citizen.
What Kind of Loans Exist For Canadian Foreign Nationals?
Bank Statement Loans
Lenders analyze your bank statements to determine your income and qualify you for a bank report Non-QM loan. Generally, borrowers need to provide 12 months of bank statements and have a 2-years of self-employment. This loan is usually the right solution for the self-employed, business owners, entrepreneurs, consultants, realtors, and real estate investors.
No Income Investment Loans
Private loans usually have high rates and require due diligence by the investor or investment firm. This adds overhead and puts many real estate investors at a disadvantage. On the other hand, Non-QM no income investment loans help build your real estate investment with fewer disadvantages.
Asset-Based Loans
If a big part of your income is hard to document, but you have verifiable assets on hand, asset-based loans can help you qualify for a home loan. With an asset based loan, The lender agrees to accept your income figure and verify your available assets. In some cases, the lender verifies your assets and does not take your income into consideration. A retiree who draws income from their retirement accounts may not have enough verifiable income, but their assets can be documented making them eligible for a Non-QM loan.
If you would like more information about your loan options, contact us today! Or start your loan application.
