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Mortgages for the Legal Cannabis Industry

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There are a lot of rules and regulations in place where cannabis is legally grown and sold.  Since the U.S. federal government lists marijuana as a Schedule 1 substance, things can get tricky when it comes to those who make a living from growing, distributing, or selling legal pot.  Luckily, mortgages aren't one of them.  So if you make a living dealing with the (legal) stickiest of the icky, this blog post is for you.  

Loans for the cannabis industry are definitely needed.  Just take a look at sales in California.  2021 was the best year on record for the adult-use retail market with over $5.2 billion in taxable sales.  But if you’re reading this blog post through the second paragraph, you likely already know this.  Maybe you are looking for an option for a home loan.  If so, keep reading.

A lender in Southern California - Fund Loans - is offering a way for borrowers to use cannabis-related income for a home loan.  All it takes to qualify is 12 months of bank statements.  How can they do this?  There’s a type of loan called a bank statement loan that uses 12-24 months of bank statements to verify income instead of W2s and pay stubs.  Lenders take a look at your deposit history in the account to figure out an average monthly income and calculate how much you can afford.

While the documents needed to qualify are very different, bank statement loans share a few things in common with conventional loans, such as:

  • Fixed and adjustable rate options available
  • Down payment of 10-20% in most cases
  • Credit score is checked

The bank statement mortgage has also been around for a while too.  While it’s a specialty loan, it wasn’t something invented specifically for the cannabis industry.  Bank statement loans have been an alternative loan for entrepreneurs and small business owners for years.  Self-employed borrowers often can’t provide a W2 that shows their true income or several months worth of paystubs that big banks require when applying for a loan.  A bank statement loan solves this challenge.  So you can feel confident that this isn’t something that just popped up and is a legitimate type of loan.

If you’re in the legal cannabis industry and are struggling with getting a loan, this might be a good option for you.  Now, I’m going to give you one final tip here.  Fund Loans doesn’t work directly with consumers, so if you’re in the weed business, you’ll need a broker to help get you set up with a bank statement loan.  I’d recommend starting with Truss Financial Group.  The expert team at Truss knows how to help cannabis workers with their home loan.  

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