If you are a business owner in the Cannabis industry and have tried applying for a home loan, then you've probably already realize how frustrating it can be to get a mortgage. It seems nearly impossible.
Despite the fact that you are operating a perfectly legal enterprise, traditional banks and lenders will not lend to anyone whose business intersects with a Schedule 1 substance like Cannabis, which includes dispensary owners, growers, producers, and other businesses involved in the supply chain. You might think that living in a recreational Cannabis state or a medical Cannabis state would make the process easier, but unfortunately, it doesn't.
Unfortunately this leaves hard-working independent business owners and entrepreneurs--who are just trying to run a legal business--without access to important finance programs like mortgage loans. Fortunately, there is a solution:
What is the Cannabis Home Loan?
As its name suggests, the Cannabis Home Loan is designed BUSINESS OWNERS and other CANNABIS ENTREPRENEURS. It functions just like a typical mortgage, except that we permit Cannabis business owners to qualify, while most other mortgages will not. You may be surprised at just how flexible our standards are, even with the restrictions that most Cannabis business owners are facing from entities like Fannie Mae and Freddie Mac.
Firstly, the Cannabis Home Loan is designed for business owners and sole proprietors. It can also be used for W2 wage-earning employees who own less than 25% of the business, but we'll cover that in a moment.
The mortgage process itself works just like any other mortgage. For this program, you will need down payment of at least 20%, or sometimes a little more depending on how well-qualified the applicant is. If your risk factors are too high, we may require a higher down payment to compensate for the added risk, on a case-by-case basis.
Once we have confirmed your preapproval eligibility, we will go through all of the steps common to a traditional mortgage, including a full underwrite, assessing the house through a standard residential approval, and free and clear title on the home to ensure it is free of any liens or ownership problems.
Our Cannabis Home Loan program is ideal for successful, well-qualified, self-employed business owners who own a legally operating business in the Cannabis Industry.
What types of Properties are Eligible?
You can use this home to finance a Single Family Home, Townhome or Villa, Condominium (warrantable or non-warrantable), Condotel, as well as specialty homes such as Luxury Waterfront Homes, Barndominiums, Hangarminiums, high acreage homes, and more. NOTE: Due to licensing restrictions, the home being financed must be lo
You can use this home to finance a Single Family Home, Townhome or Villa, Condominium (warrantable or non-warrantable), Condotel, as well as specialty homes such as Luxury Waterfront Homes, Barndominiums, Hangarminiums, high acreage homes, and more. NOTE: Due to licensing restrictions, the home being financed must be located within the state of Florida.
What Occupancy types are Eligible?
The home can be occupied as a primary residence, a second / vacation home, or an investment home. Down payment requirements can vary by the type of occupancy.
How Much Can You Borrow?
Our Cannabis Home Loan has a minimal amount of $100,000 and we will allow for loan amounts as high as $20 million.
How do I know if I'm eligible?
For this type of loan program, you will first want to give us a call to discuss your situation with our trained Cannabis Home Loan Originators. As simple as it sounds, a phone call is the best way to get things started. If it sounds like it is a good match for the program, then your loan originator will guide you through the loan application process. Don't worry, though--it's no different than any other loan program. If it doesn't seem like a good fit, then we have several other options to explore.
Speaking of options...
Although our Cannabis Home Loan Program is designed for Self-Employed Business Owners in the legal marijuana industry, it is not our only option. Here are FOUR different loan program options that can be used to help a wide variety of loan scenarios.
With our programs, operating a legal Cannabis market business is no longer an obstacle to getting a mortgage. Contact one of our Loan Originators today and find out how we can help! Or drop us a line HERE.
Derek A Bissen
Unconventional Lending Program Director