The born in the USA worldwide recession had a devastating impact on the US real estate market with the “sand” states being hit the hardest. The “sand” states refer to Florida, Arizona and California. Prime vacation properties for Canadian snow birds priced to sell.
The trick is finding a US mortgage lender willing to finance a property for a foreigner. Typical lending parameters like credit history and employment are difficult to verify when the source is from another Country. Although expensive, Canadians can find US lenders willing to pony up the mortgage, but be careful that the savings you realize on the property aren’t lost on the mortgage.
The best solution as always is to pay cash: no high mortgage rates and no points (aka FEES!). Most of us don’t have a few hundred “k” laying around, however if you’re thinking about buying a second home then chances are your Canadian home is free and clear or has a very small mortgage. The second best solution then is to get a mortgage on your Canadian home and use the money to buy your Florida property. Getting a mortgage on your principal residence will let you take advantage of the record low mortgage rates, and with the strength of the dollar you won’t lose in the conversion to US dollars.
Be sure to speak with a trusted mortgage advisor to find a solution tailored to your unique needs.