The first question almost every Canadian asks when they find out about Ohio's returns is some version of: "Okay, but how do I actually pay for it?"
It's a fair question. The assumption most people carry is that buying U.S. property requires a U.S. job, U.S. credit history, and a U.S. bank account. None of that is true. Canadians have more financing options than they realize — you just need to know which ones actually work for non-residents buying investment properties in Ohio.
Here's a breakdown of every option, what each one costs, who it works best for, and the pros and cons of each.
"The short version: you don't need U.S. income or credit to qualify. You need a down payment and the right lender."
Your Four Financing Options
DSCR stands for Debt Service Coverage Ratio. Instead of qualifying you based on your personal income, the lender qualifies you based on whether the property's rental income covers the mortgage payment. If the rent covers the mortgage, you qualify — simple as that.
This is the most common financing structure for Canadian investors buying in Ohio because it requires no U.S. income documentation, no U.S. tax returns, and no U.S. employment history. All you need is the down payment and a property with solid rental income — which is exactly what we find.
- Pros
- No U.S. income or job required
- Scales — you can get multiple DSCR loans
- 30-year fixed terms available
- Closes in 3–4 weeks typically
- Cons
- Rates slightly higher than conventional
- Requires 25–30% down
- Property must cash-flow to qualify
Some U.S. lenders offer "foreign national" mortgage programs specifically designed for non-U.S. residents. These programs use your Canadian income and credit to qualify — no U.S. history needed. You'll typically need Canadian pay stubs or tax returns (T4s or NOAs), a Canadian credit report, and a larger down payment than a U.S. resident would need.
These programs are less common and require more documentation than DSCR loans, but they work well for buyers whose Canadian income is strong and who want a traditional qualification process.
- Pros
- Uses familiar Canadian income docs
- Available through select U.S. lenders
- Fixed-rate options available
- Cons
- More documentation required
- Fewer lenders offer this program
- Higher rates than DSCR in some cases
Many Canadian investors use equity from their Canadian home (through a HELOC or refinance) to buy Ohio properties outright with cash. Entry-level deals in Akron start under $100,000 — for someone with significant equity in a GTA property, this is often a single HELOC draw.
Cash purchases close in 2–3 weeks instead of 4–6, and sellers frequently accept lower offers for the certainty of cash. You can always do a DSCR refinance after closing to pull most of your capital back out — this is the BRRRR strategy many of our investors use to scale quickly.
- Pros
- Fastest closing (2–3 weeks)
- Strong negotiating position
- No qualifying, no lender delays
- Can refinance out afterward
- Cons
- Ties up capital until refinance
- Requires sufficient Canadian equity
- HELOC interest on the Canadian side
Private lenders and hard money lenders provide short-term financing based almost entirely on the value of the property — not your income or credit. These loans close fast (sometimes in days) and are useful when you're buying a distressed property that doesn't yet qualify for a conventional or DSCR loan because it needs renovation first.
The rates are high — don't use this for a buy-and-hold unless you have a clear refinance plan. It's a tool for a specific situation, not a long-term financing strategy.
- Pros
- Fastest possible close
- Works on distressed/unrenovated properties
- Minimal documentation
- Cons
- High interest rates (10–14%)
- Short terms — requires exit strategy
- Not suitable for long-term holds
What Most of Our Clients Actually Do
The majority of Canadian investors we work with use one of two approaches depending on their situation.
If they have Canadian equity: They draw from a HELOC to buy the property with cash (or close to it), then refinance into a DSCR loan 3–6 months later to pull most of the cash back out. This gives them the speed advantage of cash plus the long-term structure of a conventional investment loan. After the refinance, their effective out-of-pocket is often 10–20% of the original purchase price.
If they want to finance from day one: They put 25–30% down and go straight to a DSCR loan. With Ohio's cash-flow-positive properties, the rent typically more than covers the mortgage, so the deal cash-flows immediately from close.
What About Currency?
Your down payment will be sent in U.S. dollars to a U.S. title company. You'll convert Canadian dollars to USD — the exchange rate on the day you wire will determine your effective cost. Currently (March 2025), 1 USD costs approximately 1.43 CAD, so a $25,000 USD down payment costs roughly $35,750 CAD before conversion fees.
Your ongoing rental income comes back to you in USD. Most investors keep a U.S. bank account for this purpose — easy to open as a Canadian with a passport and your purchase documents. When you transfer money back to Canada, you convert at the prevailing rate.
Currency movement is a real variable. A weaker CAD increases your entry cost but also increases your returns when you convert rental income back. A stronger CAD does the opposite. Most investors treat this as a long-term wash and focus on the underlying property fundamentals rather than trying to time the exchange rate.
Want us to walk you through which financing option fits your situation? That's exactly what we cover on the discovery call.
Book a CallOne Last Thing
Financing is one of the areas where working with someone who has done this before makes a real difference. The lenders who understand cross-border investors are not the same lenders you'd find by Googling "Ohio mortgage." We have established relationships with the right people — and making that introduction is part of what we do for every client.