​​Cannabis Loans--Home Loans For Self-Employed Business Owners In The Cannabis Industry

​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: 

Our CANNABIS HOME LOAN FOR SELF-EMPLOYED BUSINESS OWNERS

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.

How does it work?

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.

Here are a few features and benefits of the program:

• Common Sense Underwriting. For eligibility, we look at your entire credit history and financial profile, and perform own evaluation to guide our decision. This is why we are not completely focused on your credit score. It is only a limited snapshot of your credit at this point -- credit score don't tell the full story about your financial profile.

• Aggressive Hybrid Income Model: If there isn't a lot of taxable income showing on the income tax returns but the applicant has a sizeable liquid asset an/or retirement portfolio, our program has one of the most aggressive asset-based income models available in the current marketplace, which allows our underwriters to take the balance of the entire liquid asset portfolio and turn that into qualifying income. If you're not familiar with an Asset-based mortgage, be sure to check out our ASSET BASED MORTGAGE PROGRAM to learn more.  We can blend the tax return and the asset based income to maximize the amount of qualifying income used in the approval decision.
• No Escrow Requirement: we do not require a real estate tax escrow account or a homeowners insurance account. However, if you live in a flood zone and need flood insurance, an escrow account is required. We do not use credit score to determine the interest rate or terms.
• Close under your own name, or under a trust or LLC. If you're closing in the name of a trust or LLC, there is a nominal fee to cover the cost of a legal review of your documents (consult your loan originator for details). 
• No prepayment Penalties or early loan payoff fees

Who Qualifies?

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...

4 DIFFERENT LOAN 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.

• CANNABIS HOME LOAN PROGRAM - Ideal for Cannabis Business Owners, as well as Employees and Contractors. Minimum down payment is 20%. LEARN MORE >>

• BANK STATEMENT HOME LOAN PROGRAM - Ideal for Cannabis Business Owners, whose income tax returns show little to no qualifying income. Instead of using the income from your tax returns, we use the ordinary deposit income from your Business Bank Statements. Minimum Down Payment is 10%. LEARN MORE >>
• 1099 INCOME PROGRAM - Idea for Sole Proprietors and Independent Contractors in the Cannabis Industry - Instead of tax returns, we use the income from your 1099's. LEARN MORE >>
• CONVENTIONAL HOME LOANS - This option is only available to EMPLOYEES who own less than 25% of the Cannabis Business. Many banks and credit unions will not lend to this type of applicant, but we will! LEARN MORE >>  

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.

Yours in successful homeownership,

Derek A Bissen
Loan Originator
NMLS# 365627
Unconventional Lending Program Director

​About the Author: 

Derek Bissen is a licensed Mortgage Loan Originator with over 25 years of experience in the industry. Derek is a self-employed lending expert who is known for his ability to work with borrowers who have substantial wealth and non-traditional lending needs. He is a creative loan structurer and specializes in portfolio lending, asset-based lending, bank statement lending, as well as traditional loans such as Conventional, FHA, VA, and first-time homebuyers.

Derek's expertise in the mortgage industry is unparalleled. He is a trusted advisor to his clients, providing them with customized loan solutions that meet their unique financial goals and needs. His vast experience and knowledge make him a valuable asset to anyone looking to purchase a home or refinance their existing mortgage.

As a highly-experienced loan originator and author, Derek is committed to sharing his knowledge with others. He regularly provides valuable insights and advice to readers looking to navigate the complex world of mortgage lending. His articles are informative, engaging, and backed by years of hands-on experience.

With his wealth of knowledge and dedication to his clients, he is the go-to source for all your mortgage lending needs. If you're looking for a reliable and trustworthy mortgage expert, contact Derek today to learn more about how he can help you achieve your financial goals.