• Financing Options for Canadian Borrowers

    If you are a Canadian interested in investing in Hawaii real estate, and will require financing, here are a few tips to help you get prepared:

    Minimum down and Maximum Loans Amount

    Single Family Residences and Conforming (non-vacation rental) Condos:

    Minimum 20% down up to $625,500 loan amount
    Minimum 30% down up to $1,500,000 loan amount
    Minimum 35% down up to $2,000,000 loan amount
    Minimum 40% down up to $5,000,000 loan amount

    Minimum down and Maximum Loans Amount 

    All Property Types including Condotels

    Minimum 30% down up to $1,500,000 loan amount
    Minimum 35% down up to $2,000,000 loan amount
    Minimum 40% down up to $5,000,000 loan amount

    Typical Program Types

    The most popular loan programs in the U.S. are the 30-year and 15-year fixed rate mortgages. The fixed rate mortgages are now available for Canadian borrowers. However, the most popular loan program for my Canadian borrowers is the 10-year ARM.

    U.S. ARM loan programs are similar to your Canadian variable rate. However, the U.S. mortgage is amortized over 30 years and does not have a prepayment penalty.

    The U.S. ARM loan programs offer an initial fixed rate of 1, 3, 5, 7, or 10 years. Once you are past the initial fixed rate period, the rate will adjust one time every year for the remaining loan term.

    Income Documentation

    U.S. mortgages now require full income documentation for at least 2 years.

    This requires T-1s, T-4s and Corp/Business returns and current paystubs if applicable.

    One program is available that will allow asset depletion to assist with income qualification and is a good option for those with strong assets and the recently retired or self-employed.

    Asset Documentation

    Full liquid asset documentation required. Usually 2-3 months of bank, stock, mutual fund and/or retirement statements.

    Closing Costs

    U.S. closing costs are different than in Canada. The banks/lenders have fees here that are common and standard in the U.S.:
            Lender Fees: Underwriting, Loan Docs, Admin, Processing, Funding… some or all of these may be applicable and will be
            disclosed with our initial Lender’s Estimate.