Using A Cannabis Mortgage Loan To Purchase A Property
Are you currently involved in the cannabis industry and interested in buying a home, but concerned you may not be able to qualify for a loan because of your unconventional earnings? Marijuana is now officially legal in the state of Connecticut, allowing adults over 21 years of age to possess cannabis and dispensaries to sell it legally. If you work in the cannabis sector and are interested in purchasing a property in the areas of Stamford, Norwalk, or Fairfield, Connecticut, Prosper First Funding Corporation is here to help. Continue reading to learn more about financing a home with a cannabis mortgage loan.
What Are The Obstacles To Obtaining A Mortgage If You Work In the Cannabis Industry?
Although the state of Connecticut allows cannabis companies to legally operate and sell marijuana products, the federal government still classifies the drug as a schedule one controlled substance, making it more challenging to obtain a loan if you are affiliated with this industry. Since many residential home loans are backed by the federal government, most banks and credit companies will not want to lend to a borrower in the marijuana trade; therefore, you may need to work with an alternative lender to help obtain home or business financing. If a potential homebuyer that works in the cannabis industry goes to apply for a home loan, a lender will want to know how income is earned and what the source of that income is in order to ensure that the borrower is capable of paying back the loan. Because a cannabis worker’s income is deemed illegal by federal law, even if it is legal within that state, a borrower would essentially be ineligible for any government insured loans, such as FHA, VA, or USDA loans. Fortunately, there are other mortgage options available that can help a borrower in the cannabis industry become a homeowner.
How Does A Cannabis Mortgage Loan Work?
There are cannabis loans available that can help finance dispensaries, product manufacturing facilities, farming and growing properties, and mortgages available for people within the industry to purchase a home. Cannabis real estate loans are generally secured by assets, rather than income. A lender for a cannabis mortgage loan will usually use collateral because it can be easily liquidated if a borrower is unable to repay the loan. One of the best ways for a borrower to qualify for a loan is to save for a large down payment amount, because the more money you are able to pay up front, the less risk your lender takes on.
If you are in the cannabis industry in Stamford, Norwalk, or Fairfield, Connecticut, and need help understanding your home financing options, contact Prosper First Funding Corporation today for a consultation.