The American real estate meltdown is no news to most Canadians. Neither is the soaring loonie. The two have combined to make U.S. real estate temptingly attractive.
News stories of U.S. condos going for 50 cents on the dollar can get your juices flowing. The question is, as a Canadian, can you get a mortgage?
The answer is yes.
Chase Brodsky, a Florida mortgage advisor at LynxBanc, says getting a mortgage is straightforward for most Canadians. "Typically you'll need 25% down," says Brodsky.
You need no proof of income and you don't need to prove where your down payment came from. You don't even need a credit check. According to Brodsky, all you basically need is a completed application, photo ID, a U.S. bank account, and proof of available funds. Naturally, the property appraisal must be also consistent with your purchase price.
If the "numbers make sense," LynxBanc says Canadians can generally close on U.S. property financing in about 45 days.
Side bar: Before you scrounge up a down payment keep in mind that real estate prices in parts of the U.S. may get worse before they get better. For example, as of yesterday, CME futures traders were predicting that Miami home prices will sink another 12% in the next 12 months. This U.S. rate reset chart helps explain why. As millions of teaser mortgage rates reset, a lot more inventory will likely hit the U.S. market as borrowers can't afford their new (higher) mortgage payments. When will it end?
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