What does a Canadian need to Get a US loan?

05

Aug
2015
Posted By : expresscapitalmtg 0 Comment
Categories :Canadian Financing

The number one questions we always receive when speaking with a new client is “what do I need to provide to get a loan in the US?”  Below are listed some basic documents required by lenders who are going to provide the financing to a Canadian Real Estate investor.

Each of the items listed below are documents which will provide a clear financial picture of the borrower and what their intentions are.  When working with US Banks these documents are requested almost 99% of the time.  The most important thing to remember as a potential investor is to be as upfront and detailed as you can be in order to guarantee success when applying for a home loan, a loan for an apartment complex, or even a loan for a portfolio of homes.

 

1) Previously filed Two year’s T1 generals

2) Previous Two year’s  T4’s

4) Most current months personal asset statements (bank statements, investment accounts)

5) Most current pay stub

6) Two years of US tax returns if you file taxes in the US

7)  Property information (taxes, home owners insurance, property management, lease agreements)

8) If purchasing in an entity (i.e. LLC, LLLP, Partnership) all documentation associated with that entity such as bylaws, partnership agreements, articles of incorporation.

10) Drivers license and Passport

 

These are just a few of the most basic requirements and will vary based on each investors particular scenerio.  Remember the more information you provide up front the easier the back end will be when you are ready to close the loan.  It is also important to have a knowledgeable and accessible loan officer working for you to help guide you.

Getting a Canadian Real Estate investor a loan is no longer a impossibility but a prove possibility. Refinancing existing US property or purchasing new US property is now a real option.

The Canadian Dollar is Down What do I Do Now?

02

Feb
2015
Posted By : expresscapitalmtg 0 Comment
Categories :Canadian Financing

The Canadian dollar or the Loonie as it is more commonly known, has certainly taken a big hit when compared to the US dollar.  Many Canadians are hesitant and rightfully so about bring funds south of the border to invest in the ever improving US real estate market.  On a daily basis the team at Express Capital Mortgage Inc. talk with Canadian clients who are pulling back the reigns in the US because of the current lack of purchasing power they have with the Canadian Loonie.  The bad news is nobody knows when that may change, but the good news is there are most certainly great options for those clients.

One of the characteristics we often find when speaking with our clients is most of them have purchased US property in the past and most likely did so with cash.  They now own free and clear properties with 100% equity.  5 years ago if a Canadian wanted to take that equity and turn it into cash to either take home or invest in another property they had two options…

1) sell sell sell, cash the property in and use the money for whatever they wanted to.

2) Hard money financing…financing at 16-20% with a 6 month to 5 year terms. (I said it was an option… not a good option, just an option)

The issue with option #1 is this usually defeats the purpose of purchasing an income property.  If you do not have the property you cannot make an income.  The problem with option number 2…well that is pretty evident…high rates and higher payments. Express Capital Mortgage Inc. is here to offer option #3.

US bank financing on investment properties is now available.  Keep your Canadian money in Canada and use the US properties you currently own to your advantage.  Leverage the equity out and go looking for a property which have values which continue to climb and produce an income at the same time.  Terms for these products are similar to what Canadians are use to seeing and the rates terms are outstanding.

Now is the time to take advantage of an improving market, save yourself some money, and improve your US real estate portfolio all at the same time.  Just ask us how.

 

 

Why Should I know about Canadian Finance if I’m a Realtor?

10

Jan
2015
Posted By : expresscapitalmtg 0 Comment

It is the beginning of a new year and everyone around you is making new year’iStock_000020008559Larges resolutions.  All the old standbys are there…I am going to work out more…I’m going to eat healthier…I’m going to  stop eating an entire large pizza by myself when I have the chance.  OK maybe that last one is mine, but you get the picture.  Instead of making a resolution which will probably get broken anyway.,.how about taking some quick and useful information from here and promising yourself to apply it at least once the remainder of the year.  Not really to much to ask and it’s healthier than eating an entire pizza.

As a Realtor you are always looking for ways to drum up business.  Times recently have been slow but we all are beginning to see a turn around in the market but more business is never a bad thing. Go back through your book of business and reach out to the Canadian clientele you have worked with or spoken to in the past and let them know you surprised and excited that you just found out that Canadian investment finance is available here in the US.  I guarantee if they have not worked with Express Capital Mortgage INC.  before they will have had no idea either.  This does two things for you as a Realtor…

1)  A friendly call to a client  you have not spoken to in a while.  Always good to have a reason to call and not just a cold call. Your providing them with information I promise you they don’t have…you are providing a benefit to your client.

2) Right now the exchange rate  is not really great when bringing funds from Canada to the US, but with Express Capital Mortgage INC.  they keep those US funds in the US and minimize the amount they need to bring over the border.  We can leverage that equity they have been building in the properties they bought for cash three years ago…and go buy something else.  That is where you come in.

This is simple, painless, and a great change to get a fruitful conversation started.  Don’t don’t eat a pizza this new year…make a phone call instead.

 

5 things you should know about US Canadian Financing

17

Dec
2014
Posted By : expresscapitalmtg 2Comment
Categories :Canadian Financing

The subject of real estate financing is one which is broad and complicated and as a potential client purchasing a property here in the states it is that much more complicated.  Below are five basic things you should know about obtaining financing in today’s market.  This is not the be all end all for US foreign national real estate fiance, but it is a good start…and we’re always here to answer any other questions you may have.

1)  Keep anInvestment-Property-Financing open mind…When considering purchasing property with financing, Canadian citizens had very, very few options.  Options were limited to hard money, or equity lines of credit from their Canadian bank.  This meant you were either going to pay an exorbitant rate or the opportunity to take a fairly drastic hit from the exchange rate was possible.  Now the doors to US lenders has begun to open.  Banks are seeing the potential for reliable returns from largely undeserved Canadian investors.  This does nothing but benefit those investors looking to leverage US properties with a variety of different loan programs.

2) The paperwork can be overwhelming but…When a US citizen goes to get qualified for a bank loan it is a process that can be very labor   intensive, and as a Canadian citizen now those same types of programs are being offered to you which means the document preparation is also the same.  Banks want to lend to Canadians but they want to do it in safe way for both the client and themselves.  Items such as tax returns,T-4’s, bank statements,pay stubs, are all going to be part of the requirement.  The good news is we have a very knowledgeable team which is there to lead you down the path and make the process as painless as possible.

3) Disclose…Disclose…Disclose…This may seem like a very basic and honest principle but surprisingly does not happen as often as one would think.   To be fair to the client; he or she is participating in an exercise which allows a strangers eyes to peer into very private areas of their lives, and the instinct to protect themselves does influence them.  That being said, it can also be very painful for a borrower who is on the verge of closing a loan, and because they didn’t let the loan officer know they had a foreclosure four years back, they are being declined.  Today’s lending market is one that is not nearly as rigid as some would lead you to believe.  Lenders have options and guidelines to deal with almost every scenario a borrower can come up with.  Banks want to lend their money, but they just want to do it in a smart way.

4)Work with someone you can trust…The real estate transaction itself can be a very impersonal experience.  Clients who do not work for a mortgage company or don’t work in the real estate business on a daily basis can feel overwhelmed and under appreciated.  The loan officer and Realtor choice can be two of the most important in deciding how smooth a transaction goes.  The loan officers job is to make sure the client understands the choices he or she has and why they are or are not a benefit to them.  Being comfortable with the person sitting next to you is a very important piece to the puzzle.

5)Know your goals…When buying a second home or a multi-family apartment complex it is very important to know what your goals are.  Questions like…”am I looking long term or short term”…”Am I looking for income from the property or am I banking an increase in equity?”  Once you feel you have the goal clearly on paper, let your loan officer know.  The loan officer is there to be knowledgeable in a variety of products and bank options, and if they understand what you are trying to accomplish their recommendation become much more tailored to your needs.

Canadian Investment Financing is here…and Here to Stay

27

Aug
2014
Posted By : expresscapitalmtg 0 Comment
Categories :Canadian Financing

The recent real estate market has been a very exciting but not one without its twists and turns when it comes to options for financing foreign nationals here in the US.  The options have been very few and far between for a Canadian looking to purchase real estate south of the border.  Many lenders prefer lending only on a second homes and maybe a single investment property.  Express Capital decided it was time for a change and time to think outside the box.  The strong relationships Express Capital Mortgage has built with local as well as national banks have given the company access to programs no other lender has.  Whether you are a Canadian investor looking to purchase a single investment property or multiple properties we can help. Multi family apartment complexes and commercial real estate are also are specialty.  In the coming weeks this blog will outline some of our most recent accomplishments as a foreign national finance company as well as outline the market and it’s always changing landscape. Stay tuned!