Helping Canadians in Obtaining American Mortgages
As of January 2020, Pegasus is now offering a unique mortgage lending service for Canadians wishing to purchase property in Florida, the Sunshine state. Pegasus will not only provide lenders for Canadians wishing to purchase various properties (from principle residences to secondary, investment or commercial ones), but will also provide realtors whom we have partnered with and trusted lawyers to oversee the process and ensure that it is just!
Use Pegasus for the Best Financing Options in Florida
Pegasus will use Canadian credentials such as credit history and proof of income for qualifications.
In order for Pegasus to finance a mortgage for a property being purchased, you the buyer would need to put down 80% of the appraised value, that’s a 20% down payment.
At Pegasus, the interest rates are flexible as the rates are offered as a variable rate term.
You, the buyer, not only gets to decide on the interest rate but also on the term, with options ranging along a 3, 5, or 7 year mortgage term.
Fees & Expenses
Whilst some costs may be lessened to nonexistent, closing costs as well as appraisal, inspection and title closing costs are still very much present around us.
Canadians Guidelines to Receiving an American Mortgage
In order to be eligible for mortgage qualification, the buyer would need to submit a standard mortgage application alongside documentation in support of income, assets, liability and credit. This is required because approval for mortgage loans is based on the buyer’s Canadian income and credit history. Once all relevant documentations are submitted, a pre-approval would only take a couple days; once a purchase offer has been accepted, it will then take approximately 30 days for the mortgage to process. Therefore, we advise the buyer to not tie themselves to any quick closing/quick position offers.
Whether first or second residential properties, seasonal properties, or investment properties, we cover them all. If you are looking for a property that will be there for you to get away from Canadas harsh winters, we’ve got you covered. If you are looking to invest in a property to put up for rent, we’ve got you covered. If you are just looking to purchase a property and keep it locked up for later use, we have got you covered. We even have you covered for American commercial properties if that is what you are looking to purchase. With Pegasus, you are able to secure financing for properties such as condos, commercial properties and houses ranging anywhere from $50,000 in price points to one’s going for well over $20 million.
American Mortgage Interest Rate
While Canada collects interest semiannually, the American interest tends to be accrued monthly. Their rates can be extremely low when opting for the term to be fixed for 15-30 years. The Adjustable Rate Mortgages (ARM) are more so available for those opting for shorter terms spanning from 3-7 years with amortization periods leading up to 30 years. The rates would be locked for the first term and would adjust from there on.
Down Payment Requirements
The down payment amount will be dependent on a number of factors; including but not limited to the credit score, respective state where property is registered and the type of property it is. Only after satisfying the factors would the calculation for the down payment occur. Typically, with a healthy credit score, for a second residential property or an investment property, the buyer should expect to put down 20%-25% of the price.
Closing Costs & Expenses
Costs for American mortgages may be higher than Canadian ones at times. A buyer can expect the general appraisal, inspection, and title closing costs. However, with respect to American banks their mortgage origination and application fees charged may vary anywhere between 1%-3%. Something else for buyers to take note of is how most mortgages do not have prepayment fees for early payoff, which means those costs would need to be included upfront with other costs and expenses.
Products and Terms
In America, the mortgage offers tend to have longer fixed term options with extremely low rates. They also have the option for shorter terms with an adjustable rate mortgage to adapt and change as the market adapts and changes. Most of the mortgages also offer for the borrower to be able to pay off the mortgage at any time with no penalty.