Struggling to get a Loan as a Cannabis Professional?

Cannabis is a booming industry in Southern Oregon. Jackson County’s fertile ground coupled with Oregon’s generous medical and recreational marijuana industry laws has created many jobs within our county. Working within the cannabis industry does create some potential issues when buying a home. 

Obtaining a home loan as a cannabis professional can be a challenging process due to the current legal status of cannabis at the federal level. 

Let’s explore some  loan options for the cannabis professional:

1. Work with a Lender who Specializes in Cannabis.

One of the most important things cannabis professionals can do is to work with a lender who has experience working with individuals in the cannabis industry. These lenders understand the unique challenges cannabis professionals face and may be able to help navigate the process of securing a home loan. I have referrals!

2. Consider Owner Financing. 

In Oregon, many sellers offer owner financing which is a non-traditional loan. Similar to a traditional loan, in owner financing terms are agreed upon by the buyer and seller. This may include a down payment, terms of payment, interest rates and condition of the property. Owners do not have the same requirements of a lending institution and often are willing to lend to those with W-2 employees or private business owners within the cannabis industry. Let’s chat.

3. Document Income and Taxes.

It is important for cannabis professionals to be able to document their income and tax payments. This can help to establish a solid financial history and may be necessary for securing a home loan. Be sure to have complete and accurate tax returns, pay stubs, and bank statements ready.

4. Be Prepared for Higher Interest Rates. 

Because cannabis is still illegal under federal law, lenders may charge higher interest rates for home loans to cannabis professionals. Be prepared for this and factor it into your budget. 

5. Consider Co-signers or Joint Applications. 

If you are having difficulty securing a home loan on your own, consider applying with a co-signer or submitting a joint application with someone else who has a solid financial history. 

6. Be Patient and Persistent. 

 Obtaining a home loan can be a lengthy and complex process, especially for cannabis professionals. Be patient and persistent, and don't be discouraged by rejections or setbacks. Keep working with a real estate agent, lender and financial advisor to find the best possible financing options.

Cannabis professionals should not be excluded from owning their own homes. Let’s chat about how to get you in a home. By working with a real estate agent and lender who are familiar with the industry, documenting your income and taxes, being prepared for higher interest rates, considering co-signers or joint applications, and being patient and persistent, you can secure a home loan and achieve your dream of homeownership.

Let’s get you into your home!

Live it. Land it. Dream it.

Call or text to talk: 707-888-7894. If you are an email person, shoot me one at christophersummers@windermere.com