Who this page is for. A Canadian borrower buying or refinancing property in the United States, considering a foreign-national mortgage: the institutional loan category built for buyers without U.S. citizenship, a green card or a qualifying U.S. work visa. David Nataf, Mortgage Loan Originator (NMLS #2613311) at CrossBorderLoans.ca, places these files through Orbis Mortgage (NMLS #2583431) and holds the Quebec brokerage licence through Groupe Orbis (AMF #3001986744). Two things to know before reading on: if you already bank with an institution that runs a U.S. or cross-border mortgage program, that route is worth exploring first, and being a foreign national is not a credit diagnosis and does not by itself mean hard money.
If you are a Canadian citizen, European investor, Latin American buyer, or any non-U.S. person looking to purchase property in the United States, you do not need a green card or U.S. work visa to get a mortgage. Institutional bank lenders offer mortgage programs specifically designed for foreign nationals, and for a borrower who fits them the terms are usually materially better than a hard money loan, which is specialized financing built for different situations rather than the default for foreign nationals.
As a mortgage broker licensed in both Florida (NMLS #2613311) and Canada (Quebec), I specialize in connecting international buyers with the right institutional lender for their situation. The cost difference between a foreign national bank program and a hard money loan on the same property can be material, and I have seen buyers placed in hard money simply because the person advising them did not know these programs existed. Hard money has its own legitimate uses; it should not be the default for a foreign national.
Who Qualifies as a Foreign National?
For mortgage purposes, a foreign national is anyone who does not hold U.S. citizenship, permanent residency (green card), or a qualifying work visa (such as TN, H-1B, L-1, or E-2). If you are visiting the U.S. on a tourist visa (B-1/B-2), have no U.S. visa at all, or reside entirely outside the United States, you fall into the foreign national category.
Common misconception: Many buyers assume they cannot get a U.S. mortgage without a Social Security number. This is false. Foreign national programs use your passport and ITIN (Individual Taxpayer Identification Number) instead. Whether an ITIN is needed, and at which stage, depends on the lender and program; where it is, applying is a routine IRS process that can run alongside the loan application.
Foreign National vs. Hard Money: How the Categories Differ
| Feature | Foreign National Bank Program | Hard Money Loan |
|---|---|---|
| Lender type | Institutional bank or credit union | Private individual or fund |
| Loan term | Fully amortizing, long term | Short term, usually with a balloon |
| Qualification | Borrower documentation, credit evidence and property | Primarily the property and the deal economics |
| Documentation | Passport, income, bank statements; requirements vary by lender | Minimal, asset-based |
| Refinance path | Standard refinance when eligible | Must refinance or sell before the balloon |
| Rates, fees, down payment, timeline | Set by each lender and program; they change and are not stated here | |
Should you try your Canadian bank first?
If you already bank with an institution such as RBC, TD, BMO, National Bank or Desjardins and it offers a U.S. or cross-border mortgage program, explore that route first. When their program fits the borrower and the transaction, it can be an excellent solution: they know Canadian clients, and depending on the program they may work with Canadian credit, income, assets and documentation. RBC Bank says it uses your Canadian credit history; BMO says you can apply using Canadian credit history if you have no U.S. one. A working bank solution is a good outcome. This page, and CrossBorderLoans.ca, are the second-review path for when that program does not fit the property, the intended use, the income shape or the ownership structure. The full reasoning is in start with your Canadian bank's U.S. counterpart, and what a cross-border bank decline actually means is in what to do if your cross-border bank program declines the mortgage.
Foreign national is a category, not a credit diagnosis
No U.S. FICO score, no SSN, no ITIN yet, or no U.S. work permit describes your documentation profile, not your creditworthiness. A Canadian with twenty years of clean Canadian credit may have no U.S. score at all; the U.S. system simply has no domestic data on you. Foreign-national programs exist precisely for that profile, and how Canadian credit, income and assets are read depends on the program. The details, identifier by identifier, are at mortgage options when you have no established U.S. credit. None of this means hard money is required: hard money is legitimate specialized financing for distressed property, renovation, very fast closings, bridge and collateral-driven transactions, not the automatic result of a Canadian passport. The institutional alternatives are compared at institutional alternatives before accepting hard money.
When DSCR may be the better fit
For an investment property, a DSCR loan may qualify substantially on the property's rental income rather than on your personal Canadian income. When a foreign-national program stalls on income documentation and the purchase is a rental, that is often the category to look at next: DSCR financing for U.S. rental property. Ownership structure, cross-border tax and estate questions should be reviewed with qualified tax and legal professionals separately; a mortgage program should not be the reason you change a structure.
Eligible Property Types
Residential
- Single-family homes
- Condos (warrantable and non-warrantable)
- Townhouses
- 2-4 unit properties
Investment
- Short-term rentals (Airbnb/VRBO)
- Long-term rental properties
- Vacation homes
- Mixed-use (case by case)
Required Documentation
Foreign national programs require documentation from your home country. While exact requirements vary by lender, here is what you should have ready:
- Valid passport, all borrowers, current and not expiring within 6 months
- Proof of income, employment letter, two years of tax returns from your home country, or 12 months of bank statements showing regular income deposits
- Proof of funds, bank statements showing funds for the down payment, closing costs and post-closing reserves; the reserve requirement is set by each lender
- Bank reference letter, from your home-country bank confirming your account in good standing
- International credit report, if available through Nova Credit or a similar service (not all countries are supported; alternative documentation accepted)
- ITIN or SSN, depending on the lender and program; where one is required, it can be applied for during the loan process
- U.S. bank account, required before closing for wire transfer of funds and ongoing mortgage payments
Canadian buyers: I read Canadian documents natively, T4s, Notices of Assessment, RRSP statements, Canadian credit reports. You do not need to hire a translator or notary to convert your Canadian documentation. This is one of the key advantages of working with a broker who understands both systems.
The Process: From Application to Keys
Step 1: Pre-Qualification (Day 1-3)
We review your financial profile, identify the best-fit lender program, and provide a pre-qualification letter you can use when making offers. This step involves a phone or video consultation and a review of your basic financial documents.
Step 2: Property Search and Offer (Timeline varies)
With your pre-qualification letter in hand, you work with a real estate agent to find and make an offer on a property. We can recommend agents experienced with foreign national transactions in your target market.
Step 3: Formal Application (Day 1 of contract)
Once your offer is accepted, we submit the formal loan application with your complete documentation package. The lender orders an appraisal and begins underwriting.
Step 4: Underwriting and Approval (Days 7-25)
The lender reviews your documentation, verifies your income and assets, and issues a conditional approval with any remaining items needed. We manage the back-and-forth with the lender to ensure a smooth process.
Step 5: Closing (Days 25-35)
You sign the closing documents at a title company. Remote online notarization (RON) is available in most states, meaning you can close from your home country without traveling to the United States. Wire your closing funds 3 to 5 business days before the closing date.
Countries We Work With Most Frequently
While foreign national programs are available to buyers from virtually any country, we work most frequently with buyers from Canada, the United Kingdom, France, Mexico, Brazil, Colombia, Argentina, Israel, and the UAE. Each country has specific documentation nuances, for example, French tax documents follow a different format than Canadian T4s, and Mexican income verification may require notarized translations. We handle these variations routinely.
Frequently Asked Questions
Can I buy U.S. property through an LLC?
Yes, and many foreign nationals prefer this structure for liability protection and estate planning. Foreign national lenders will lend to a U.S. LLC owned by a foreign national. The LLC must be formed in the state where the property is located (or in a state like Delaware or Wyoming). Consult a cross-border tax accountant regarding the U.S. estate tax implications, properties held personally by non-resident aliens are subject to U.S. estate tax with only a $60,000 exemption, whereas an LLC structure may provide planning opportunities.
Do I need to visit the United States to close?
No. Most states allow remote online notarization, which means you can sign your closing documents via video call with a notary from anywhere in the world. You do need to wire your closing funds from a U.S. bank account, so that account must be set up before closing.
What if I already have a hard money loan?
If you purchased U.S. property with a hard money loan and want to refinance into better terms, foreign national bank programs are available for refinancing. Most lenders require a 6 to 12 month seasoning period (time since you acquired the property) before refinancing. We can evaluate your current loan terms and timeline to determine the optimal refinance strategy.
Lost in Translation: A Cross-Border Mortgage Glossary
Canadians and Americans technically speak the same language, just with different accents, different spellings, and apparently, completely different mortgage vocabularies. After 25 years working across both systems, I have compiled the phrases most likely to cause confusion at a closing table. Consider this your Rosetta Stone for cross-border real estate.
| What a Canadian Says | What an American Says | What It Actually Means |
|---|---|---|
| Non-resident | Foreign national | Someone buying property in a country where they do not reside. Same person, different label, and yes, it matters which form you use with which lender. |
| Equity take-out | Cash-out refinance | Borrowing against the equity in your property. Canadians take out equity like they take out the trash. Americans refinance cash out like they are at an ATM. |
| Mortgage term (5 years) | Mortgage term (30 years) | In Canada, a "term" is 5 years and then you renegotiate. In the U.S., you lock in for 30 years. When a Canadian hears "30-year term" for the first time, their eyes widen noticeably. |
| Variable rate | Adjustable rate (ARM) | A rate that changes with market conditions. Canadians call it variable, Americans call it adjustable. Both mean your payment can go up when you least want it to. |
| Porting a mortgage | ... blank stare ... | In Canada, you can transfer your mortgage to a new property. In the U.S., this concept essentially does not exist. Americans simply get a new mortgage every time. |
| CMHC insurance | PMI (Private Mortgage Insurance) | Insurance that protects the lender if you default. Canadians pay CMHC, Americans pay PMI. Neither borrower enjoys paying it. |
| Closing costs: ~1.5% | Closing costs: ~3-5% | The fees to finalize your purchase. Canadian buyers consistently underestimate U.S. closing costs because they are comparing to the Canadian experience. |
| Solicitor / Notary | Title company / Closing attorney | The professional who handles the legal transfer. If you ask for a "solicitor" in Florida, they will hand you a business card for a door-to-door salesman. |
| GDS / TDS ratios | DTI (Debt-to-Income) | How lenders measure whether you can afford the mortgage. Two countries, three acronyms, same math. |
| Discharge / payout | Payoff / satisfaction | Paying off your mortgage in full. Canadians "discharge" a mortgage. Americans get a "satisfaction" letter. One sounds like a firing, the other sounds like a spa treatment. Both mean you are free. |
| Pre-approval (14 days) | Pre-approval (same day) | In Canada, a pre-approval can take weeks and involves a credit bureau pull. In the U.S., some lenders issue pre-approval letters in hours, though "pre-approval" and "pre-qualification" mean different things depending on who you ask. |
| Strata fees | HOA dues | Monthly fees for shared condo amenities. Canadians pay strata, Americans pay HOA. Both are shocked when they see how much it costs for a pool they never use. |
| Cheque / bank draft | Cashier's check / wire transfer | How you send your down payment. If you spell it "cheque" on a U.S. form, the processor will assume it is a typo. It is not. |
| Maturity date | ... not a thing ... | In Canada, your mortgage "matures" every 5 years and you renew. In the U.S., the only maturity date is 30 years away. Americans do not know what renewal stress feels like. |
| Subject-free offer | Clean offer / no contingencies | Making an offer without conditions. Canadians remove "subjects," Americans waive "contingencies." Same gamble, different poker face. |
| Postal code (A1A 1A1) | ZIP code (33139) | Where your property is. Canadian ones have letters and numbers. American ones are all numbers. If you enter your Canadian postal code into a U.S. lender's website, it will break. |
| SIN (Social Insurance Number) | SSN / ITIN | Your tax ID. Canadians have a SIN. Americans have a SSN. Foreign nationals without either need an ITIN, which you can sometimes get at closing. Alphabet soup, but essential. |
| Land transfer tax | Transfer tax / documentary stamps | The tax you pay when you buy property. In Canada it is called land transfer tax. In Florida it is documentary stamps. In both countries, you are surprised it exists. |
| "Zed" | "Zee" | The last letter of the alphabet. Not mortgage-related, but it will come up when you are spelling your postal code over the phone to an American lender. Trust me. |
Why this matters: We technically speak the same language, just with different accents, different spellings, and apparently, completely different mortgage vocabularies. These are not just vocabulary differences, they reflect fundamentally different mortgage systems. A Canadian buyer who assumes U.S. mortgages work like Canadian ones will be surprised by the 30-year fixed rate (pleasantly), the closing costs (less pleasantly), and the lack of portability (confusion). Working with a broker who is fluent in both systems means nothing gets lost in translation.
Ready to Explore U.S. Property Financing?
Whether you are buying your first U.S. investment property or refinancing out of a hard money loan, I will find the right institutional program for your situation.
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David Nataf | Mortgage Loan Originator (NMLS #2613311) | Boca Raton, FL · Montreal, QC
Cross-border mortgage financing for Canadians buying property in the U.S.
888-695-6268 | david.nataf@orbismortgage.com
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Disclaimer: This content is educational only and does not constitute legal, tax, or mortgage underwriting advice. Mortgage program terms, rates, and requirements vary by lender and can change without notice. Rate ranges quoted are illustrative and based on current market conditions; your actual rate depends on your individual borrower profile, property type, and lender selection. Consult a licensed mortgage originator, cross-border tax accountant, and/or attorney before making financial decisions.
Verify licenses: U.S., NMLS Consumer Access (NMLS #2613311). Canada, AMF Public Register.