More and more Canadians are looking to purchase property in the United States, here are a few key items to consider when buying

From a financing perspective, it’s pretty straight forward especially if you are buying in your personal name. They will use you income, credit score, and qualify you just the same. They move extremely slow though, so be prepared 

You can expect to put down 30%, get a slightly higher interest rate but still great options like a 30 year fixed term or entire properties on Home Equity Lines of Credit (Heloc). I have done both options with American banks. 

Opening an American bank account is very straight forward, they will want photo ID and your SIN number, you do not need an American address. You will need an address if you would like a credit card. 

If you put the property in an LLC or American corp you can expect to be double taxed, if you put in your personal name or Canadian corp you will not be double taxed. Any tax you pay to the states, you will get credit for from the CRA. 

Americans use title companies to close transactions, they are very quick and efficient. This is why is not uncommon to have a 2 week close. Typically the seller picks the title company and the buyer uses that same company to transfer the deed. 

When offering on a property, you have to disclose if it’s cash purchase or if it will be financed. A lot of times your offer is conditional on getting that financing up to closing, this is why there is so much value is being a ‘cash buyer’ in the states. 

Comps are tougher to run because sold prices are not posted until the property has actually closed, instead of just firmed up like in Canada. So there can be a 3-4 week lag in data

In summary, it’s not as scary or challenging as one might think! Keep in mind, I use a realtor, mortgage broker, insurance agent, accountant for my purchases as you should. This thread is for educational/awareness purposes only.