I have a client in Canada who wants to buy an investment property in California.

Asked by Roger Grubb, Richmond, CA Thu Oct 15, 2009

Do they need to secure a bank prequalification in Canada or in Cali? What challenges will we face?

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Jeannette Karis’ answer
Jeannette Ka…, Agent, Spokane Valley, WA
Fri Oct 16, 2009
I suggest making sure the client understands how long they are able to stay in US - if no green card or job then may have visa limitations and they need to have a full understanding of that - no good buying the home and then finding out if they loose their job they can't live in the home year round?
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Viktor Manri…, Agent, Hercules, CA
Fri Oct 16, 2009
BEST ANSWER
Another Great Question! Canadian Investors are very Welcome in the USA. They can secure a loan in Canada (Home Equity type) then buy for all cash here in the USA. However the last time I had a Canadian Investor, I referred my client to a local lender that specializes in foreign buyers: NOVA Mortgage Loans, C/O Mr. Ron Ewing at 510-964-1615—Office located in the City of Hercules. Mr. Ewing has access to the Credit Report Data Base for foreign buyers (much like our TRW, Trans-Union & Equifax), approving my client was not a problem. Call Ron; let him know I referred you, and Good Luck!

If you need further assistance, feel free to call on me personally, I can mentor you through the process.

Viktor
0 votes
Jesse Sierra, Agent, Pomona, CA
Fri Oct 16, 2009
Roger,
Talk to tax consultant as well.


Best Regards,
Jes Sierra, B.Sc.
Realtor®
0 votes
Bob Georgiou, Agent, Danville, CA
Fri Oct 16, 2009
Roger,

I believe that it may not matter but I would contact a local title company to discuss it with them. My belief is that there may be title issues that the Canadian bank may not be set up for unless they have US branches. There are some banks that work across state lines so there is no ussue there but crossing federal boundaries adds a layer of complexity that is resolved by using US lenders, preferably in the state of choice.

The problem with a non citizen getting US financing will pose other challenges though but it is not impossible. The bank's issue is regarding concenrs about an owner who gets in trouble returning to his country of origin, so down payments and assets are going to be scrutinized even more than otherwise.
Web Reference:  http://bob2sell.com
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Roger Grubb, Agent, Richmond, CA
Fri Oct 16, 2009
Oh, so it can be either a Cali lender or a Canadian lender?
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Andre Plessis, Both Buyer And Seller, Canoga Park, Los Angeles, CA
Fri Oct 16, 2009
Depends on who will do the loan? If it is in CA, then a pre-qual will be needed here, but if a Canadian bank lends money to your client, then he will deal with his bank there.
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