Obtaining a residential mortgage if you work in the cannabis industry is now possible. There are far too many false facts, inaccurate statements, and false assumptions. We want to help put to rest all of these and give you the facts and the truth in order to help you achieve the American dream of homeownership.
We have helped other cannabis employees such as yourself purchase a home when in fact they thought it wasn’t possible.
The cannabis industry is projected to create more jobs than manufacturing by 2020 per Forbes and Business Insider. Colorado created an estimated 20,000+ jobs from just the cannabis industry alone, as well as helping to lower our unemployment rate. With stats like this, we are happy to know that we can help more employees.
Fact: You don’t need to buy a home in cash
Truth: If you are a W2 employee in the cannabis industry you may qualify to purchase a home with a conventional mortgage.
Fact: You don’t need to seek out private financing in order to purchase a home
Truth: You can put in as low as 3% down (and also possibly no MI) AND could qualify for down payment assistance options.
DID YOU KNOW?
If you are a W2 employee working in the cannabis industry you may be able to qualify to buy a home here in Colorado. Again, it is no secret that the cannabis industries employees have struggled in the past in getting access to home financing loans. With some recent changes in guidelines, we are now fortunate to offer mortgage programs to cannabis W2 employees. Just to give you an idea, here are a few options we can offer:
- Conventional mortgage
- Low down payment options available
- Including 3% down NO MI options
- Down payment assistance options
- MUST be a W2 employee with less than 25% ownership
The Difficulties of Securing a Cannabis Mortgage Loan Denver
There’s no denying that working in the cannabis industry has traditionally made some aspects of life difficult for workers, particularly when it comes to qualifying for a mortgage. As public opinion about cannabis continues to change for the better, more states have seen fit to legalize marijuana, either for medical or recreational purposes (or both).
This, in turn, has opened doors for research, testing, cultivation, production, and sales, not to mention numerous job opportunities. It has also started to remove some of the stigma people working in the cannabis industry have long been faced with.
Unfortunately, marijuana remains illegal at the federal level, which means income earned from the cannabis industry is seen as illegitimate by association. This can throw a wrench in the works for employees in the cannabis industry when it comes to financing a home purchase, since many loan types (FHA/VA/USDA loans) are federally insured and retail banks are FDIC (federally) insured.
The good news is that opportunities exist for those who receive a W2 from a cannabis company, especially in states where cannabis has been legalized. With the help of an experienced cannabis mortgage broker like Mortgage Maestro Group, you can now explore options to secure the cannabis mortgage in Denver that puts the dream of home ownership within reach.
How to Get a Cannabis Mortgage Loan
If you’ve tried to obtain traditional lending in the past and found that the experience left a bitter taste in your mouth, you may be understandably hesitant to try again, even if the goal of owning a home is high on your list of personal priorities. How can an experienced cannabis mortgage broker in Denver help?
For starters, a mortgage broker does all the heavy lifting for you. If you know anything about finding a home loan on your own, you know it involves researching lenders and approaching them for loan approval, a process that can be confusing, frustrating, and tedious. A mortgage broker manages the process for you by scouring available loan options to find the best opportunities for you.
When it comes to loans for workers with a W2 from a cannabis employer, the process isn’t really much different from the mortgage broker perspective, provided the employee holds less than 25% stake in the cannabis company (or no stake for 1099 employees) and meets certain other qualifications. One main reason is that mortgage brokers work with numerous lenders, and often have access to mortgages that are written off agency guidelines. Which means there are no overlays from an FDIC insured bank. As long as you live in a state where marijuana has been legalized, you have a minimum of two years of experience working in the cannabis industry, you can prove your income, hve down payment money available, then you may be eligible for a cannabis mortgage loan.
Of course, you also have to meet the necessary underwriting criteria that goes with securing any type of mortgage. Lenders will still look at your credit score, credit profile, debt-to-income ratio, your loan amount and down payment, and other factors when determining your eligibility for approval, as well as your ability to repay the loan.
Factors that Influence Interest Rates
When seeking a cannabis mortgage loan in Denver, you may be understandably concerned that you’ll be charged a higher interest rate simply because you work in the cannabis industry. However, cannabis loans don’t have marked up interest rates. Your interest rate will depend on the same factors as any other home buyer would face, including:
- Loan amount
- Length of the loan (15, 20, or 30 years, for example)
- Fixed vs. adjustable interest rate
- Credit scores
- Down payment amount
- The need for Private Mortgage Insurance (PMI)
- and more
An experienced mortgage broker will find you the best loan terms based on current conditions and other factors, saving you the time of approaching lenders and comparison shopping on your own. Since they will have access to the top wholesale lenders for you.
Eligibility Requirements for Cannabis Mortgages in Colorado
Qualifying for a cannabis mortgage is in many ways the same as it would be for any other home buyer. Your eligibility will largely be based on factors like:
- Credit score and credit history
- Employment verification and history
- Debt-to-income ratio
- Loan amount
- Amount of down payment
- Down payment
The only additional consideration for employees in the cannabis industry is that they must be purchasing a home in a state where marijuana has been legalized.Also, at this time that they are not a 25% owner of said business. Although the dream of owning a home has long been out of reach for many working in the cannabis industry (at least without a cash offer on the table), changing laws and public sentiment have now made it possible for many cannabis professionals to secure the lending needed to finance the purchase of a home.
If you’re a cannabis worker looking for the best options for lending to purchase a home, the experienced and accommodating team at Mortgage Maestro Group is ready to help. Contact us today at 303-529-7126 or online to learn more and get the ball rolling.
If you would like to learn more about these options and you are in the cannabis industry please give us a call, contact us.