Frequently Asked Questions

Q: What states are you approved to broker cannabis home loans in at this time? 

A: California and Florida only.

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Q: How much down payment do I need? 

A: Minimum down payment is 5% for W-2 employees, and 10% for owners (with 25%+ ownership) and 1099 contractors. 

 

Q: Can I use cash for my down payment? 

A: Down payment funds must have been seasoned in your bank for 60+ days, or come as a gift from a qualifying donor. In that case, funds must have been seasoned in the donor's bank for 30+ days.  

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Q: What FICO score do I need to qualify?

A: The minimum mid-FICO score is 620 for all qualifying buyers. Higher-credit-score borrowers enjoy better loan terms (lower rates, less down payment).

 

Q: How do I improve my credit score?

A: MyFico.com has information on credit scoring. Pay bills on time & keep loan balances to credit lines low. 

 

Q: How much income do I need?

A: Your income should be approximately three times your new housing payment, including taxes and insurance. So, if your total housing payment is $2000/mo, you should document a pre-tax income of $6000/month.

 

Q: What loan amount would I qualify for?

A: As an estimate, 1/3 of your gross monthly income, multiplied by 125, will roughly equal the loan amount for which you could qualify. An example: if you make $3000/month, ($3000 / 3) * 125 = $125,000 qualifying loan amount. Complete an application by clicking APPLY NOW for a more formal pre-approval! 

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Q: How can I get qualified to purchase a home?

A: Apply Here or call us at (760) 383-1293!

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Q: Can someone gift me money for down payment?

A: Yes! A gift can be provided by:

• a relative, defined as the borrower’s spouse, child, or another dependent, or by any other individual who is related to the borrower by blood, marriage, adoption, or legal guardianship; or

• a non-relative that shares a familial relationship with the borrower, defined as a domestic partner (or relative of the domestic partner), an individual engaged to marry the borrower, a former relative, or a godparent.

NOTE:  The donor may not be, or have any affiliation with, the builder, the developer, the real estate agent, or any other interested party in the transaction.

 

Q: Could I get a co-signer who is not going to occupy the home?

A: Yes! Borrowers can increase their income with a qualifying non-occupant co-signer. However, a co-signer will not improve the credit score. Lenders use the lowest mid-credit score of all borrowers. Qualifying for a home loan is based on the combined income and debts of all borrowers.

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Q: Can I buy a manufactured home?

A: Only manufactured homes on real property (where the land on which the house stands is owned or bought by the buyer) with a permanent foundation built after 6/15/76 qualify. 

 

Q: Can I buy a manufactured home in a park on leased land?

A: Sadly, no.

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Q: What types of homes can I buy? Which ones do not qualify? 

A: Single-family, 2-4 units, townhomes, and FNMA-qualifying condominiums can be purchased through our loan programs. For manufactured homes, see the criteria above. Unfortunately, tiny homes, homes on leased land, park model homes, log homes, container homes, pre-6/15/76 manufactured homes, and non-qualifying condominiums cannot be bought with our loan programs.

 

Q: Can I apply for a loan at my bank or credit union?

A: Yes, you can apply! However, since your income from the cannabis industry is not considered legal under federal law, your chance of bank or credit union approval is low. 

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Q: How long do I have to have been employed to qualify for your loans?

A: You'll need a 2-year employment history in the cannabis industry or in an equivalent occupation. For example, if you had been a security guard for a hotel for a year, and now you've been a security guard for a cannabis dispensary for a year, you could qualify. Owner Borrowers will need to verify 2 years of business ownership in the cannabis industry through a letter from either a licensing board or a tax preparer.  

 

Q: Does my job title matter?

A: No - your amount and source of income, W-2, 1099, or ownership are more relevant than your job title. 

 

Q: Can I apply together with someone else?

A: Yes, you and (an)other individual(s) can purchase a home together as owner-occupants.  

 

Q: How long does it take to get approved?

A: In most cases, with a complete application and supporting documentation, we can get you an automated approval on the same business day. Finalizing the purchase of your new home can typically be completed in 30-45 days. 

 

Q: What type of documentation is needed for a loan application?

A: We need to know who you are, how much you make, verify your down payment, and check your credit. For that, we'll need a copy of your driver's license, W-2s of the last two years, your last 30 days' paystubs (or tax returns of the last two years for self-employed contractors or owners), bank statements (all pages) over the last two months, and a filled-out credit authorization form. 

 

Q: How does the loan application process work?

A: Here are the steps:

1. Complete an application Here. 

2. Upload the requested documentation.  

3. Complete your credit authorization.

4. We'll get you a pre-approval letter that you can use with your Realtor to start making offers on homes. 

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Q: Great! But can I chat with someone first?

A: Of course! You can reach our bilingual (English & Spanish) staff at (760) 383-1293 weekdays.