By Jennifer Srock

Many American banks cannot provide home financing to Canadian citizens. However, there is available financing to help Canadians purchase homes in America and it’s right here in Arizona.

Here’s a few highlights of Canadian Citizen financing available:

• Must be a primary residence or 2nd/Vacation home
• 15,20,25 and 30 year fixed rate terms
• 3/1 or 5/1 adjustable rate terms
• This is not financing for investment properties or if you already have a mortgage in the United States.
• There is a $50,000 minimum required loan amount
• Will loan up to 75% for both purchase and refinance transactions up to $1,000,000
• No prepayment penalties
• Borrowers must open a bank specific account prior to closing. This helps for your proof of funds you must show to the seller as well.

Here are some of the Documentation Requirements for Canadian Citizens.

1. Personal balance sheet and income statement
2. Business balance sheet and income statement (if applicable)
3. Job Verification
4. Bank statements for the most recent 30 days
5. 2 years of payment history on two past or existing loans or lines of credit

So, what are the available property types eligible for Canadian Financing?

1. Single family residences
2. PUDs/CONDO must meet specific guidelines
3. Non-warrantable condos must have an loan to value ratio of 70% or less
4. Property must be located in a market area served by the lender

Before you buy a home in the United States, check into the Foreigner Tax on Arizona Real Estate aka F.I.R.P.T.A.

Need a loan officer that specializes in financing Canadian citizens? What about other Canadian experts such as Accounts, Tax Advisers, or Foreign Exchange? Let me know. I can help you find an expert you’re looking for.

I am not a lawyer, nor am I a tax advisor. This informational post is intended to guide you to seek counsel from an AZ tax advisor, Canada tax advisor and/or a tax specific attorney for ALL cases involving FIRPTA.

About FIRPTA On Foreigner Owned Real Estate in Arizona