How Canada investors access US DSCR financing
Foreign-national DSCR loans let Canada citizens acquire US rental property without US credit history, US income, or US tax filings. The loan is underwritten on property cash flow rather than personal income.
Top US markets for Canada investors
- Miami
- Phoenix
- Las Vegas
- Florida Gulf Coast
- Arizona
- Hawaii
- Palm Springs
Typical Canada foreign-national DSCR terms
- Down payment: 30-50% of purchase price
- Interest rates: 10-13%
- Loan term: 30-year amortization with 5/1, 7/1, or 10/1 ARM
- Max LTV: 60-70% (vs. 75-80% for US residents)
- Prepayment penalties: standard 3-5 year structures
- LLC vesting: required, US LLC with EIN
Documents required
- Passport (notarized copy)
- Foreign bank statements (3-6 months, translated and certified)
- Source of funds documentation
- ITIN (application acceptable; not required at close)
- US LLC formation with EIN
- Proof of liquidity (typically 6-12 months PITIA reserves)
- Letter of reference from foreign bank (some lenders)
Canada investor FAQ
Frequently Asked Questions
Yes. Specialty lenders fund foreign-national DSCR loans for Canada-based investors. Typical down payment 30-50% of purchase price. Rates 10-13% reflecting added risk and operational complexity.
Specialty foreign-national lenders include Lendai Finance and select private money operators. Many institutional non-QM lenders avoid foreign-national underwriting; the active pool is narrow but well-defined.
Passport, foreign bank statements (translated, source-of-funds documented), proof of liquidity, ITIN application in process or completed, LLC formation in Delaware or property-state. Some lenders also require letter of reference from foreign bank.
Yes — most foreign-national DSCR loans require US LLC vesting. Delaware LLC is most common. LLC needs US-based registered agent and EIN.
Top US markets for Canada investors include Miami, Phoenix, Las Vegas, Florida Gulf Coast, Arizona, Hawaii, Palm Springs.
Generally no. The US allows foreign nationals to acquire real estate. Some states have minor restrictions on certain agricultural land. Residential investment property is broadly accessible.
FIRPTA (Foreign Investment in Real Property Tax Act) requires 15% withholding on sale proceeds when a foreign investor sells US real estate. Plan for this at exit. Some exemptions apply for lower-value primary residences.
Yes — rental income from US property is US-source income subject to US taxation. ITIN required for tax filings. Tax treaties between the US and Canada affect withholding rates.
Foreign-national lending involves cross-border tax and regulatory complexity. Consult international tax counsel before purchase. FIRPTA, US tax treaties, and country-specific regulations affect outcomes.