According to Forbes, spending on legal cannabis products is expected to hit an astounding $47 billion in North America within the next decade. Although the cannabis industry continues to grow throughout the United States, many lenders are still hesitant to provide financing for potential buyers in this line of business.
As more states follow the trend of legalizing recreational marijuana, it simply doesn’t make sense that financing opportunities are so limited for employees of this booming industry. Unfortunately, for many employees of the skyrocketing cannabis economy, a stable income and impressive credit score aren’t enough to make the dream of homeownership a reality. However, new opportunities have begun to arise to help remedy this problem. If you’re a W2-employed individual of a cannabis-related job with a reliable income, you may be able to qualify for a mortgage through Fannie Mae’s HomeReady program. This program allows financing for those in the cannabis industry and offers a host of appealing benefits. Here, we share the details on this unique financing option.
W2 employees in the cannabis industry can now get home financing
Fannie Mae’s HomeReady program provides a new pathway to homeownership for W2 employees in the cannabis industry and beyond. If you’re a member of this growing career path, you may meet the requirements to qualify for this flexible financing option. Here’s what you need to know about qualifying for the HomeReady program:
- HomeReady is ideal for borrowers with low to moderate income. To check the income limit for your city, visit homeready-eligibility.fanniemae.com/homeready.
- Borrowers need a score of at least 620 to apply. Those with credit scores above 680 may qualify for a better rate.
- HomeReady borrowers need a minimum down payment of only 3 percent, compared to FHA’s minimum down payment of 3.5 percent.
- Mortgage insurance is cancellable after home equity reaches 20 percent. Many lenders require PMI to be paid for the duration of
- This special program allows flexible funding. Down payment and closing fees may come in the form of gifts or grants, and minimum personal funds are not required.
The HomeReady program could be the perfect solution for individuals in marijuana-related career paths. If you’re a W2 employee and haven’t had luck securing financing from other lenders, this option is certainly worth exploring. Its additional benefits are also appealing to a broad audience, and this program may provide excellent opportunities for a wide array of applicants.
By Michaela Phillips. Michaela is the Vice President of Mortgage Lending at Guaranteed Rate, Inc. Contact Michaela at 303.579.5517, e-mail email@example.com or visit michaelaphillips.com. NMLS: 312874.