Helpful Info for Canadian Borrowers Buying Property in Hawaii
Loan to Value (Down Payment) Requirements:
Single Family Residences and Conforming (non vacation rental) Condos:
- 20% Down to $625,500 Loan Amount
- 30% Down to $850,000 Loan Amount
All Property Types including Condo-tels:
- 35% Down to $1,000,000 Loan Amount
- 40-50% Down to $5,000,000 Loan Amount
Typical Program Types:
- Most US mortgages are amortized over 30 Years even the Adjustable Rate Mortgages (ARM’s).
- Hybrid ARM’s are very popular with Canadians and are fixed for 5,7 or 10 years.
- Most US Mortgages do not have a Pre Payment penalty and if they do it is usually no longer than 12-24 months long.
- US Mortgages now require full income documentation for at least 2 years. This would require T-1’s, T-4’s and Corp/Business Returns and current paystubs if applicable.
- We do have one program that will allow asset depletion to assist with income qualification and is a good option for those with strong assets and recently retired or self employed.
- Full liquid asset documentation required. Usually 2-3 months of bank, stock, mutual fund and/or retirement statements.
- We may not be able to use 100% of the value of retirement accounts.
- US closing costs are different than in Canada. The banks/lenders have fees here that are common and standard in the US:
- Points: These are a fee (percentage of loan amount…1 point equates to 1% of loan amount) that has a direct relationship with the rate. The higher the points, the lower the rate and vice versa. 0 Point options are not as available to Foreign National borrowers.
- Lender Fees: Underwriting, Loan Docs, Admin, Processing, Funding… some or all of these may be applicable and will be disclosed with our initial Good Faith Estimate.
Info provided by Elite Lending
- Rebecca Ross, President
- 2679 Wai Wai Place, Suite 202, Kihei, HI 96753
- Office: 808-891-2005
- Cell: 808-250-6482
- Fax: 808-891-2044
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