Can Canadians Get a Mortgage to Buy a Home in Tennessee?
If you live in Canada and you’re thinking about buying a home in Tennessee—whether in Nashville, Williamson County, or the surrounding areas—you’re not alone. We regularly work with buyers who are relocating, investing, or purchasing a second home from north of the border.
Here’s the good news: Yes, Canadians can absolutely get a mortgage in the U.S. But the process is different from what most American buyers experience.
This guide walks you through exactly how it works—and how to prepare.
Step One: Your Immigration Status Matters
U.S. lenders first look at whether you have legal residency or work authorization.
Option 1: You Have a U.S. Visa or Green Card
If you hold a valid U.S. work visa (TN, H-1B, L-1, etc.) or permanent residency, you may qualify for a traditional U.S. mortgage.
- More lender options
- Lower down payments
- Better interest rates
- Standard underwriting
This is the easiest path.
Option 2: You Live in Canada (Most Common)
If you still reside full-time in Canada and do not have U.S. residency, you’ll likely need a Foreign National Mortgage.
These are specialty loans designed for international buyers.
They are very doable—but they require more preparation.
Down Payment: Expect 25% or More
Foreign national loans require larger down payments than most U.S. buyers are used to.
| Property Type | Typical Down Payment |
|---|---|
| Primary / Second Home | 25%–35% |
| Investment Property | 30%–40% |
There are no FHA or low-down-payment programs for non-resident buyers. Lenders want to see strong equity from day one.
Income & Documentation: What You’ll Need
Instead of U.S. tax returns and W-2s, Canadian buyers usually provide:
- Canadian tax returns (T1s)
- Employment letters
- Recent pay stubs
- Bank statements (CAD and USD)
- Proof of assets
- Investment account statements
Lenders must verify where your money comes from and that it’s stable.
Tip: Start organizing these documents early. It speeds everything up.
Credit History: Why Specialized Lenders Matter
Most Canadians do not have U.S. credit scores.
Instead, lenders may use:
- Canadian credit reports
- Bank reference letters
- Asset-based underwriting
- International credit verification services
This is why working with the right lender is critical.
Not every mortgage company can do this properly.
We always connect our international buyers with lenders who handle these loans regularly—not occasionally.
Where Your Funds Come From Matters
Expect extra scrutiny on your money.
Lenders will require that your funds are:
- Fully documented
- Seasoned (usually 60+ days)
- Traceable
- Properly exchanged
Large unexplained deposits can delay—or derail—approval.
Clean paperwork = smooth closing.
How You’ll Use the Home Affects Financing
Lenders care how the property will be used.
Easiest to Finance
- Primary residence
- Long-term second home
More Complicated
- Short-term rentals
- Airbnb-style properties
- Pure investments
Always be upfront. Different rules apply depending on usage.
Timeline: Plan for a Longer Process
Foreign national loans take longer than standard mortgages.
Typical timeline:
⏱️ 45–60+ days
Extra reviews, compliance checks, and international verifications are normal.
We recommend starting the lending process before you begin touring homes.
What About Taxes?
Owning U.S. property as a Canadian involves cross-border tax considerations.
Depending on your situation, this may include:
- U.S. tax filings
- Canadian reporting
- Rental income rules
- FIRPTA when selling
We recommend working with a CPA who understands U.S.–Canada real estate ownership.
Why Working With Local Experts Matters
Buying internationally adds layers of complexity.
As lifelong Nashvillians with more than two decades of experience, we help Canadian buyers:
- Connect with the right lenders
- Understand neighborhood value
- Navigate inspections and contracts
- Avoid costly mistakes
- Close smoothly from abroad
Every client works directly with us—no hand-offs, no assistants, no confusion.
If you’d like to learn more about our approach, visit our guide on direct, hands-on representation.
Thinking About Buying in Tennessee from Canada?
Whether you’re relocating, investing, or purchasing a second home, we’re happy to walk you through the process step by step. We tend to work in Nashville proper and up to about 25 miles away from the city. If you are looking farther afield in Middle Tennessee, we've been in business for over 20 years and have a vast network of productive agents in our markets. We'd be happy to introduce you to a specialist in your area of interest
Start Your Nashville Home Search →
We’ll help you understand financing, timing, and neighborhoods—before you ever book a flight.
About James & Stephanie Crawford
James and Stephanie Crawford are lifelong Nashvillians and full-time Realtors who have helped more than 500 families buy and sell homes across Middle Tennessee. Known for their direct, hands-on representation and transparent pricing, they personally handle every client from first showing to closing—no assistants, no hand-offs.
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