Canadians can finance a home in Florida through lenders that make foreign national loans. Your Canadian credit usually cannot be used directly, so lenders rely on your bank statements, references and down payment. If you spend part of each year in Florida, also learn the IRS day count rules.
Where Canadians buy
Many Canadians buy on the Gulf coast and in Central Florida, often condos or homes in golf and lake communities. Condos come with their own approval rules, so read Florida condo financing and why the building matters before you make an offer.
Your Canadian credit
US lenders usually cannot pull your Canadian credit file the way they pull US credit. Lenders that finance foreign nationals use other proof instead: bank statements, a reference letter from your bank and sometimes a credit report you provide. A larger down payment helps.
The snowbird day count
The IRS uses a substantial presence test to decide if a visitor is a US tax resident. If you meet it, you may still be treated as a nonresident through the closer connection exception, if you were in the US fewer than 183 days that year, kept your tax home in Canada and had closer ties to Canada. You claim it by filing Form 8840 by the tax return due date. Source: IRS, closer connection exception. Ask a cross border tax adviser about your exact days.
Renting it out when you head home
If you rent the home while you are in Canada, check the local rules first: Florida short term rental rules. A DSCR loan can qualify a rental on its rent.
Tax, in plain words
US tax basics from the IRS: rental income from US property owned by a nonresident is taxed at 30% of the gross rent by default, unless you elect to be taxed on net income and file a US return (Form 1040-NR). When a foreign owner sells, the buyer generally must withhold 15% of the sale price under FIRPTA. See the IRS pages on nonresident real property and FIRPTA withholding. A cross border tax adviser can tell you how this fits with your home country.
Why Canadians buy here
Warm winters, water and golf, a short flight from home.
Many owners spend the winter here and rent the home, or leave it closed, the rest of the year.
Back to Foreign national loans · buyers by country
Home Loans With Dane is a US mortgage broker. This page is general information, not tax or legal advice. Talk with a tax adviser in both countries before you buy.
Common questions
Can Canadians get a mortgage in Florida?
Yes. Lenders that make foreign national loans finance Canadian buyers. Expect a larger down payment than a Canadian mortgage.
Does my Canadian credit score count?
Usually not directly. Lenders use bank statements, references and your down payment instead.
What is Form 8840?
It is the IRS form a visitor files to claim the closer connection exception, so they can be treated as a nonresident for US tax even after many days in the US.