Financing and Banking
You should be able to finance the purchase of your vacation or secondary single-family home
with a US bank, but there are strict credit and income requirements. You may also be required
to open an account with the lender and keep reserve funds in the US to qualify for financing.
RBC Bank operates in Florida and provides financing options for single family homes, but due
this favorably when considering an offer. TD Bank has several branches in the Tampa area,
which you may find useful for currency exchange, wire transfers, or mortgages.
Financing a Condo
Financing for condos as a Canadian foreign national (or from any other country) is next to
impossible through a US bank, even if it will be your primary residence. As a cash buyer you
have a range of opportunities available to you in Sarasota, Manatee, and Charlotte Counties,
and cash buyers hold a lot of negotiation leverage. You can search for condo listings from our
MLS here. I predict market conditions will continue to favor Canadian buyers, encouraging US
lenders to offer financing options for condos in the near future.
Down Payment or Escrow Deposit
As part of your purchase offer, you will be asked to make a security deposit or what we call an
escrow deposit or earnest money. This is held by the closing agent or attorney in a separate
account. A good rule of thumb is an escrow deposit somewhere in the range of 5-8% of the
purchase price. This helps assure the seller you are committed to buy the property and well
qualified to complete the purchase. Deposit is usually made through wire transfer. You can
have up to three business days to send funds after your offer has been accepted and signed by
all parties.
Closing: Attorney versus Title Company
There are no additional taxes or fees for foreign nationals buying real estate in the US. While
I'm told Canadians must hire a lawyer to handle a sale, in the US, you have a choice between a
licensed real estate attorney or a title company to handle your closing and sale. I recommend
using a real estate attorney whenever possible. There are usually no extraordinary fees
associated with hiring an attorney versus a title company (both attorneys and title companies
charge around $300). You will incur FIRPTA charges on the eventual sale of your property over
$300,000. Read more about FIRPTA here.
Short Sale versus Foreclosure
A lot depends on your willingness to make repairs from a long distance when considering a
short sale versus a foreclosure. The foreclosure market has slowed considerably. As a result,
where I would have recommended avoiding short sale properties a few months ago, the banks
are now streamlining the approval process. Instead of waiting months as was the case in the
past, you may get short sale approval from lenders in weeks. You can read about short sales
here.
As a Canadian buyer, a short sale may make better sense for you, since the property is likely
occupied and may not need the extensive repairs a foreclosure property can require.
You can also learn about the Florida Homestead Exemption, and how it can affect your property
taxes.
You should be able to finance the purchase of your vacation or secondary single-family home
with a US bank, but there are strict credit and income requirements. You may also be required
to open an account with the lender and keep reserve funds in the US to qualify for financing.
RBC Bank operates in Florida and provides financing options for single family homes, but due
this favorably when considering an offer. TD Bank has several branches in the Tampa area,
which you may find useful for currency exchange, wire transfers, or mortgages.
Financing a Condo
Financing for condos as a Canadian foreign national (or from any other country) is next to
impossible through a US bank, even if it will be your primary residence. As a cash buyer you
have a range of opportunities available to you in Sarasota, Manatee, and Charlotte Counties,
and cash buyers hold a lot of negotiation leverage. You can search for condo listings from our
MLS here. I predict market conditions will continue to favor Canadian buyers, encouraging US
lenders to offer financing options for condos in the near future.
Down Payment or Escrow Deposit
As part of your purchase offer, you will be asked to make a security deposit or what we call an
escrow deposit or earnest money. This is held by the closing agent or attorney in a separate
account. A good rule of thumb is an escrow deposit somewhere in the range of 5-8% of the
purchase price. This helps assure the seller you are committed to buy the property and well
qualified to complete the purchase. Deposit is usually made through wire transfer. You can
have up to three business days to send funds after your offer has been accepted and signed by
all parties.
Closing: Attorney versus Title Company
There are no additional taxes or fees for foreign nationals buying real estate in the US. While
I'm told Canadians must hire a lawyer to handle a sale, in the US, you have a choice between a
licensed real estate attorney or a title company to handle your closing and sale. I recommend
using a real estate attorney whenever possible. There are usually no extraordinary fees
associated with hiring an attorney versus a title company (both attorneys and title companies
charge around $300). You will incur FIRPTA charges on the eventual sale of your property over
$300,000. Read more about FIRPTA here.
Short Sale versus Foreclosure
A lot depends on your willingness to make repairs from a long distance when considering a
short sale versus a foreclosure. The foreclosure market has slowed considerably. As a result,
where I would have recommended avoiding short sale properties a few months ago, the banks
are now streamlining the approval process. Instead of waiting months as was the case in the
past, you may get short sale approval from lenders in weeks. You can read about short sales
here.
As a Canadian buyer, a short sale may make better sense for you, since the property is likely
occupied and may not need the extensive repairs a foreclosure property can require.
You can also learn about the Florida Homestead Exemption, and how it can affect your property
taxes.
Now is a great time to purchase your Florida dream vacation home, retirement property, or
condo. I specialize in working with Canadian buyers to purchase their Sarasota-area
vacation or retirement home.
Prices in our area are generally considered to have bottomed out. Sarasota has traditionally
been a high-demand area because of our award-winning beaches and cultural attractions.
The time is definitely right to take advantage of some of the lowest prices in more than a
decade, while exchange rates remain favorable.
If you are relying on Zillow data, they misrepresent Sarasota real estate values and trends.
Zillow is not a licensed real estate broker, nor do they employ local real estate professionals
in any local market in the US or Canada. Click here to see my analysis.
condo. I specialize in working with Canadian buyers to purchase their Sarasota-area
vacation or retirement home.
Prices in our area are generally considered to have bottomed out. Sarasota has traditionally
been a high-demand area because of our award-winning beaches and cultural attractions.
The time is definitely right to take advantage of some of the lowest prices in more than a
decade, while exchange rates remain favorable.
If you are relying on Zillow data, they misrepresent Sarasota real estate values and trends.
Zillow is not a licensed real estate broker, nor do they employ local real estate professionals
in any local market in the US or Canada. Click here to see my analysis.
If you have previously visited the Sarasota area, you may have a good idea of where you'd like
to purchase and what our real estate market is like.
If you see a property online that looks very promising, I can provide a video tour of the entire
interior and the surrounding neighborhood here on my website, which I call a Virtual
Walk-Through, and on my YouTube channel.
This will save valuable time and money by eliminating a trip to view property in person.
You may find my rental expense calculator useful in evaluating your potential investment.
NEW! Everyone wants to know how far a particular area is from the beach. Now you can view
my exclusive Beach Meter with walk/bike/drive distances or times to the nearest beach.
to purchase and what our real estate market is like.
If you see a property online that looks very promising, I can provide a video tour of the entire
interior and the surrounding neighborhood here on my website, which I call a Virtual
Walk-Through, and on my YouTube channel.
This will save valuable time and money by eliminating a trip to view property in person.
You may find my rental expense calculator useful in evaluating your potential investment.
NEW! Everyone wants to know how far a particular area is from the beach. Now you can view
my exclusive Beach Meter with walk/bike/drive distances or times to the nearest beach.
This may be the only real estate website that has blank copies of the most commonly used
documents for buying or selling real estate in Florida. Please go to the newly added
Document Center and feel free to ask me any questions about contracts, disclosures,
addenda, and more.
documents for buying or selling real estate in Florida. Please go to the newly added
Document Center and feel free to ask me any questions about contracts, disclosures,
addenda, and more.
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I have a long and successful track record of helping international buyers in my service area,
which includes Manatee, Sarasota, and Charlotte Counties.
My wide knowledge of our area's real estate options means I am uniquely qualified to help you
weigh the pros and cons of areas of interest to you, as well as perhaps suggesting similar
areas you may not be aware of.
Other brokerages may charge buyers a fee, but there is never a fee when you hire me to
represent you as a buyer's agent.
You do not need to register at a seminar to buy Florida real estate! Please read my blog on
how these real estate seminars are highly misleading to the Canadian buying public.
which includes Manatee, Sarasota, and Charlotte Counties.
My wide knowledge of our area's real estate options means I am uniquely qualified to help you
weigh the pros and cons of areas of interest to you, as well as perhaps suggesting similar
areas you may not be aware of.
Other brokerages may charge buyers a fee, but there is never a fee when you hire me to
represent you as a buyer's agent.
You do not need to register at a seminar to buy Florida real estate! Please read my blog on
how these real estate seminars are highly misleading to the Canadian buying public.
| See my specific recommendations for investment properties in Sarasota and Manatee Counties |
David:
Thanks for all your help
staying on top of properties
for us and all the updates.
You're a great Realtor!
Thanks for all your help
staying on top of properties
for us and all the updates.
You're a great Realtor!
F. Rapisardi
