Legal cannabis is a multi-billion dollar industry and it is only growing here in California with collectives and dispensaries everywhere you look. Unfortunately, many people working in the marijuana field have had trouble getting approved for home loans. Many lenders are still hesitant to offer financing.
In many ways, it doesn’t make sense because it’s steady work in an industry that is growing rapidly. Even borrowers with proven income and impressive credit scores have found challenges pursuing their dreams of homeownership.
The HomeReady Solution
The good news is that things might be changing in a positive direction for those working in the legal cannabis industry. This is thanks to Fannie Mae’s HomeReady program. As long as you are W2-employed had bring the other financial requirements to qualify for a mortgage loan, this program should help thanks to flexible financing terms.
HomeReady Qualification Requirements
It’s not just legal cannabis workers finding home buying opportunities from the HomeReady program, but it is certainly one of the industries that we expect to benefit from it. Here are some of the qualifications you need to know if applying for a HomeReady loan:
- It is designed for borrowers with low-to-moderate incomes. Click here to see income limits for your city.
- A minimum credit score of 620 is required, but those with credit scores higher than 680 may be able to qualify for even better rates.
- Private mortgage insurance will be required if your down payment is less than 20%. However, it is cancellable once your equity reaches the 20% plateau.
- HomeReady loans require a minimum down payment of only 3%, which is less than the FHA minimum of 3.5%.
- HomeReady mortgages offer flexible financing options for closing fees and down payments, so you will want to discuss your options with your lender.
HomeReady Loans at Transparent Mortgage
If you are in Southern California’s legal cannabis industry (or any W2 job) and you think you might qualify for a HomeReady mortgage loan based on the terms above, call Transparent Mortgage today at (619) 701-3906 to learn more or get started on your HomeReady loan application.