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Why Cannabis Industry Workers Struggle to Get a Mortgage – and How They Can Take Action
Legal Cannabis jobs offer stable pay and growth potential, yet many employees in the industry struggle to secure a home loan. The disconnect between state-level legalization and federal restrictions creates headaches for these hardworking individuals.
Why Banks Deny Cannabis Workers:
Although there are many in-depth reasons, banks and other lenders routinely deny loan application for mortgage due to these main reasons:
- 🚫 Federal Prohibition: Cannabis remains illegal at the Federal level, and many lenders follow Federal guidelines.
- 🚫 Income Classification Issues: Cannabis paychecks are sometimes flagged as "high-risk," even if fully documented.
- 💵 Cash-Based Challenges: Cannabis-related businesses often rely heavily on cash, complicating income verification.
This issue is more common than is widely known in the real estate industry.
For example: Here's a tale of one Dispensary manager. Luis, a dispensary manager, saw his dream home slip away because his lender wouldn’t count his bonuses and overtime from his cannabis job. "The bank told me my income was ‘unverifiable’ – even though I gave them my W-2 and pay stubs."
Suggested Steps:
Thinking about buying a home while you're working in the Cannabis or hemp industries? Here are some solid steps you can take make sure that your transaction will be smooth and easy:
- 🚀 Work With Specialized Lenders: Seek out institutions experienced in cannabis industry loans. For instance, our Cannabis Home Loan Programs offer solutions tailored specifically for your industry. This eliminates the guesswork, knowing that you're working with a lender who understands and works with your type of income. Many times, W2 workers get the exact same type of Conventional home loan program that the big banks and credit unions cannot offer, since they have already overcome the Cannabis income issue.
- 🔑 Improve Documentation: Save pay stubs, deposit records, and tax filings.
- 🔎 Explore Alternative Loan Programs: Look into non-QM loans and portfolio lending.
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Conclusion:
Cannabis industry workers can achieve homeownership by understanding these challenges and partnering with the right financial experts.
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For more information on our Cannabis Home Loan Programs:
You can also drop us a line HERE »
Yours in successful homeownership,
Derek Bissen
Loan Originator
NMLS#365627
Unconventional Lending Program Director
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 goal