Canadians are the largest group of foreign buyers of US residential property. In the National Association of Realtors' 2026 International Transactions report, covering April 2025 to March 2026, Canada was the top country of origin with 16% of foreign buyers, ahead of Mexico (14%) and China (11%).
Some buy with cash, others with a loan from a Canadian bank secured on property at home. A US business-purpose loan made to a US LLC is the third route, and for an investor buying to rent, renovate or build, it is often the cleaner one: the US asset carries its own US debt.
How the structure works
- Form a US LLC in the state of your choice and obtain its EIN from the IRS. No Social Security number or ITIN is needed; see the EIN guide
- Open a US bank account in the LLC's name and fund it with the equity
- The LLC signs the purchase contract, and Passy Capital lends to the LLC, secured by the property
- You sign for the LLC as its member or manager, from Canada if you prefer
Terms for a Canadian borrower
No Canadian credit report is turned into a US score, and none is needed. The loan is underwritten on the property, the plan and your experience. Term sheets come back in 24 to 48 hours; a clean file closes in about two weeks. The fee is 1% to 2% of the loan, paid at closing.
| Loan | Maximum leverage | Typical use |
|---|---|---|
| Bridge | Up to 80% LTV | Buy fast, refinance or sell within 12 months |
| Fix and flip | Up to 90% LTC | Purchase and renovation for resale |
| Renovation | Up to 90% LTC | Value-add on a property you will keep |
| Ground-up construction | Up to 85% LTC | Spec homes, 2-4 unit builds, build-to-rent |
| DSCR (rental) | Up to 80% LTV | Long-term hold, qualified on rent |
What to settle with a cross-border tax adviser first
The financing is the straightforward part. The entity choice is not, because a US LLC can be treated differently by the IRS and by the Canada Revenue Agency, and the result depends on your personal situation, your other holdings and how you plan to take money out. Ask an adviser who practises on both sides of the border before you form the LLC, not after the purchase.
On the US side, a single-member LLC owned by a foreign person files Form 5472 every year (see Form 5472), and a sale by a foreign owner triggers FIRPTA withholding (see FIRPTA). Both apply to Canadians like any other foreign owner.
Business-purpose only
The loan is for investment property: a rental, a flip, a build. If you plan to spend winters in the property yourself, it is not an investment property, and a business-purpose loan is the wrong product. That line matters more for Canadians than for most foreign buyers, because so many US purchases by Canadians are for personal use.
For an investor buying to let or to resell, the markets Canadians already know well, such as Florida and Arizona, are within the box. See Florida and the foreign national loans page.
Funding the LLC from Canada
The loan is in US dollars and the equity has to arrive in the LLC's US account in US dollars. Plan the conversion and the transfer well before the deposit and the closing dates, and send the funds from an account in your name so the source-of-funds trail is simple for the lender's checks. Keep the LLC's US account for the property only: rent in, expenses and loan payments out.