Interesting article in The Globe and Mail about Canadian buyers wielding cash to get amazing deals on vacation homes in Arizona and elsewhere. My own personal belief has always been: “Money talks, but cash convinces.”
Read the article, “Warm vacation property wanted-will pay cash,” here: http://tinyurl.com/warmvacationproperty4canadians
In the article, Globe and Mail Contributor Roma Luciw says:
Canadians are still heading south of the border to snap up warm-weather vacation homes, but, unlike other foreign buyers, many snowbirds are now skipping the mortgage process entirely and paying cash for their home away from home.
A distressed U.S. housing market and a strong loonie are luring winter-weary Canadians looking for a place to plant their money. “Cottages have become prohibitively expensive in Canada – a Florida condo is far more affordable,” says Caroline Nalbantoglu, a financial planner with PWL Advisors Inc. in Montreal.
And while securing financing from American banks has become tougher, many Canadians are avoiding that process by dipping into their savings.
I’m pleased to report that if you don’t want to dip into your savings, there are at least two mortgage companies in Arizona that lend to Canadian buyers. I would be happy to provide my contact names.
In the meantime, if you’re wondering what a mortgage lender in Arizona requires and what they offer, here are the parameters provided by one of the lenders:
Investment Home: 35% downpayment Sample rate (10/2/09): 7.375 if purchased in personal name or 7.625 if in LLC, etc.
Please note, we have a Due on Transfer clause in our Deed of Trust, all Canadian loans (at this mortgage company) carry a 3-yr PrePayment Penalty(1%)
Minimum loan amount is $50,000.
Arizona is a Community-Property state, so if any of the parties are married, the spouses will either be waiving their rights to title, signing a Spousal Notification of Guaranty or need to be on the loan application.
The following documentation is requested for preapproval:
- A completed application
- If employed: 2 most recent paystubs and 2007 & 2008 T4s
- If self-employed, 2007 & 2008 tax returns and 2009 P & L for the business
- 2 months’ recent bank statements, all pages, any accounts you wish to disclose
- Copy of photo ID for each individual
There may be a $35 credit report fee.
So whether you bring your own cash or choose to keep that in the bank and get a mortgage, Arizona real estate is a bargain right now. Don’t miss this opportunity to get the vacation home of your dreams while the Loonie is so strong:
