If you work in the legal cannabis industry, you may have trouble getting a home loan that fits your needs. However, you can find quality financing when you work with our staff.
This is part of a series on financing available for workers in the marijuana industry. For more information, see our articles How To Get A Loan While Working In The Marijuana Industry and Option 1: Financing Up To $7.5 Million If Your Work In The Marijuana Industry.
Option #2: Getting a Loan When Working in the Cannabis Industry
Excellent terms available:
▪ 80% to a loan amount of $1,500,000
▪ 70% to a loan amount of $1,750,000
▪ Maximum program loan amount of $1,750,000
No Restrictions on Ownership or Employment Position
Some loans for people working in the marijuana industry have restrictions on the different types of positions you can hold in this sector. You may find that other loans won’t actually be available to people who are owners or executive-level leaders in the industry. It is assumed that these people, for a variety of reasons, carry a higher risk, and therefore lenders avoid delivering loans to owners of cannabis businesses. They also avoid delivering loans to people who are executives in the industry, such as CEOs, CFOs, COOs, and company presidents.
With this loan program, however, there is no such restriction. Whether you are an owner, an executive, or a ground-level employee, you will not be ruled out simply because of your position in the industry.
No High Interest Rates
Because of the higher risk, or at least the higher perceived risk, many loans to people working in the cannabis industry have higher interest rates. This is not the case with these loans, as you will find that the interest rate is comparable to other loans of similar size and type.
Interest rates can vary based on many different factors, including personal factors, such as debt-to-income ratio and credit score. They can also go up or down based on the type of loan, such as 15-year vs 30-year loans. However, with this loan product, the fact that you work in the marijuana industry will not increase the interest rate.
No Prepayment Penalties
Paying off your loan early is often a smart decision, as you will pay less in overall interest. However, with some loans you may be subject to prepayment penalties. This is because lending institutions make their profits through interest; if you pay the loan off early, less interest is paid, which means the institution earns less money, despite the fact that that did essentially the same amount of work in approving and issuing the loan.
Therefore, some may charge an additional fee if you pay the loan off early. With this loan, you won’t be subject to this type of penalty. If you decide to pay the loan off early, you won’t have to pay an additional amount to the bank.
Available in Washington, Oregon, California, and Utah
Recreational marijuana is currently restricted to a handful of states. Likewise, these loans are currently only available in four states. If you live in Washington, Oregon, California, or Utah, and you work in the marijuana industry, this loan program may be your best option to finding the right financing for your home purchase.
Can Be Used to Purchase Owner-Occupied Homes
The owner-occupied single-family home is the backbone of the American real estate industry. These properties, which are owned by individuals and families all across the country, are the typical homes enjoyed by millions of Americans, so it only makes sense that they would be available as part of this program.
Second Homes Also Available
Owner-occupied primary homes are not the only option for your purchase. If you work with our staff for this loan product, you can actually secure financing for the purchase of a second home. Second homes are defined differently by various institutions, but they are essentially a property that you live in for either part of the year (less than 50% of the year) or on and off for a few times throughout the year. In many case, they are popular options for retirees who want a vacation home for the winter, or for families that want a vacation home where they can escape whenever they feel the need.
These are not, however, investment properties. A second home is simply for your own personal enjoyment, not for making a profit.
Can Be Used for Purchase
Another important benefit of this program is that it can be used as a purchase loan. This is essentially the basic loan that allows you to make a purchase of a house, and it’s the foundation of the real-estate lending industry. If you work in the legal marijuana industry, you should be able to purchase the home you desire, and this loan makes it possible.
A purchase loan, however, is not the only use for this program…
Refinancing Available As Well
Another option that you have available is to use the program to refinance your current loan. If you have a loan that is currently too expensive or does not have the right terms, you can refinance your loan and get a better situation to fit your needs.
Refinancing for a Better Rate
One of the common uses for refinancing is to get a better interest rate on your loan. Say your current loan has a high interest rate, perhaps because your credit score was low when you took out the loan, or interest rates in general were high. Either way, you may be able to refinance and secure a lower interest rate, potentially saving thousands of dollars over the life of your mortgage.
Refinance for a Different Term
You can also use the program to refinance for different terms. For example, you can use the loan to refinance from a 30-year to a 15-year mortgage, reducing the overall amount of interest you will pay on the loan. (But also increasing your monthly payments.) If you have a 15-year mortgage but are struggling with the payments, you could refinance to a 30-year, which reduces your monthly totals, making the house more affordable.
Cash Out Refinance
A cash-out refinance is also possible. This option allows you to turn equity locked into your home into liquid cash, which can be used for home repairs, investments, or virtually any other purpose.
Reliable, Fair Financing for Marijuana Employees
If you work in the marijuana industry, there are options available for your home mortgage. Contact our staff today and find out how we can deliver the right loan for your next home purchase or refinance!
A very responsible and experienced professional with his highly effective team
I really enjoyed working with Chad Baker and the rest of the team. This was our first time buying a home in California and we started with unnecessary assumptions based on our previous experience as home-owners in a different state. Chad and his team were available throughout the whole process, explaining the state differences, answering all our phone calls and emails quickly and directly, and providing detailed weekly status reports so that all parties including agents knew exactly where we were in the process. Chad was very experienced and provided customized loan products for us to consider, which definitely facilitated our transaction. I recommend the Chad Baker team! ”
“Juliann – Thank you very much for your patience and help with everything. I can say 150% that we could not have gotten through this without you. I have been through this process before a few times BUT never have received this type of care/attention. This process is intense and you managed to humanize this life changing experience for us – rather than being a loan number. If you or Home Point ever need an official recommendation from us, you can count us in.”
“This is the second time that I have worked with Chad (home purchase & refinance). He has become my subject matter expert and someone I depend on for all finance needs related to our home and real estate investments. My favorite things about Chad are his depth of knowledge, responsiveness, honesty and the great service he provides. I have referred countless friends and family of mine to work with him for no other reason than I know that he will treat them well and equip them for the best possible outcome. Chad will add tremendous value to any real estate transaction that you have and I am grateful to have him as a resource.”