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Derek Bissen, September 12 2021

​​Cannabis Home Loans for Self-Employed Business Owners in the Cannabis Industry

​If you’re in the cannabis industry, you’ve likely faced adversity when looking for financing. Traditional lenders don’t lend to anyone in the Schedule 1 category, including cannabis sellers, growers and other businesses in the supply chain. This often leaves cannabis self-employed business owners without the financing they need including a mortgage. 

Fortunately, there’s a solution – the Cannabis Home Loan for Self-Employed Business Owners

What is a Cannabis Home Loan? 

The Cannabis Home Loan, as the name suggests, the Cannabis Home Loan is for self-employed cannabis business owners. It works much like a standard mortgage, except we allow cannabis business owners to qualify whereas most other mortgage financing doesn’t. 

You might be surprised to learn how flexible our standards are, despite the restrictions most cannabis business owners face. 

How Does it Work? 

The Cannabis Home Loan for Self-Employed Business Owners is for Florida residential property owners only. You can close in your name or in a trust or LLC. There is a small fee to cover the cost of reviewing the paperwork, but we’ll let you know of those fees ahead of time. 

The mortgage itself works like any other mortgage. You need a down payment of at least 20%, sometimes slightly higher depending on the factors of your loan. If your factors are too risky, we may ask for a higher down payment to make up for the risk. 

Once we determine that you qualify for the loan, we’ll complete the underwriting process, evaluate the home, ensure it’s worth as much as you agreed to pay and that the title is free of any liens or ownership issues. 

Our cannabis home loan doesn’t require an escrow account of either your real estate taxes or home insurance. However, if you live in a flood zone and flood insurance is required, it will require an escrow account. 

How to Qualify 

We don’t require a specific credit score, though, this is an area our program differs greatly. We look at your overall credit history and do a comprehensive credit evaluation to determine your risk level. We look at recent public records, such as foreclosures or bankruptcies, as well as any good factors your credit history shows to make a determination. 

We use what we call common sense underwriting. We proactively seek ways to balance your shortfalls with any strengths. That’s why we don’t focus on your credit score. It’s just a snapshot of your credit right now – it doesn’t tell the whole story of your level of financial responsibility. 

Our program is great for high net worth and self-employed borrowers whose income may or may not look like it fits the standard mortgage requirements. We use an aggressive asset depletion model that allows our underwriters to use your total liquid asset portfolio balance and convert it into annual income. 

Common liquid assets we use include: 

What type of Property can you Buy?

Borrowers can use our Cannabis Home Loan Program for the Self-Employed on any of the following properties:

The home can be a primary, secondary, or even investment home too. The down payment requirements may increase if it’s not your primary residence. 

How Much can you Borrow? 

Our Cannabis Home Loan for the Self-Employed loan minimum is $100,000. We allow loan amounts up to $15 million, depending on your qualifying factors. Your credit history and debt-to-income ratio must support the payment to qualify for the higher loan amounts. 

Steps to Apply 

We make it easy to apply for the Cannabis Home Loan for the Self-Employed. First, you'll want to give us a call to discuss your scenario first.  If it sounds like a good fit, you’ll start by completing a loan application. Your loan application is the same application you’d complete for any other mortgage financing. You’ll provide your personal identifying information as well as all financial information to help us get started. 

Once you complete the application, we’ll typically need the following documents: 

Final Thoughts 

Don’t let the fact that you run a cannabis business and are self-employed ruin your chances of securing mortgage financing. We make it easy to get the loan you need to buy your primary, second, or even investment home. We look at the big picture, rather than looking for a specific credit score or even debt-to-income ratio. 

Our common-sense underwriting allows more business owners to get approved despite their riskier business model. We want to help the business owners who are making a living, working hard, and deserve the financing they need to buy a home that other lenders won’t offer. 

Whether you’re looking for conventional home loan financing, an alternative home loan, or commercial money for your cannabis business we are here to help. Reach out to a loan originator today to see how we can help you!


Written by

Derek Bissen

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