What mortgages and other home and construction loans are available to Canadians?
The United States has a very active and competitive home loan market, but the vast majority of loan programs are not available to non-residents. That’s a shame, because in terms of currency exposure, it’s prudent to match your US$-valued cottage asset with at least some US$ financing.
Some banks do have loan programs for non-resident buyers; notably, Bellingham-based Banner Bank helps Canadian residents finance their vacation properties in the U.S. Currently this loan program includes lot loans and construction to perm loans, in addition to regular mortgages. Fixed rates are available out to 30 years with no prepayment penalties. Canadian borrowers require a credit score of 700+. Lot-only loans require a 25% equity payment, while construction loans and mortgages require 20% equity.
Banner has a branch office on the Point in the International Marketplace grocery store, where you can get more specific information and start your application.