Although cannabis is legal in California for both medical and recreational use, it's still listed as a Schedule 1 substance and is still not legal on the federal level. Because many banks and mortgage lenders work across state lines and/or are part of the federal banking system, these institutions are often unable or unwilling to work with clients who earn wages or business income from cannabis-related activity, even if that activity is completely legal in the state where it's earned.

Income earned as an employee of a cannabis business may actually be allowed even on some conventional loan products, if it can be documented that the employee is not an owner of the business and is paid W2 only. For business owners, obtaining a mortgage from income earned can be much more challenging, but it's possible. Here are some of the options we can offer.

Most cannabis loans are available for non-owner occupied properties only, with conservative LTVs, usually 40-60% of the property value depending on use of the property.

CBD derived from hemp and industrial hemp are now legal federally after passage of the Farm Bill in 2018. However, many banks have made a decision to avoid working with any income derived from these industries because hemp and CBD are closely related to cannabis. If you are an owner or employee in a hemp or CBD business, we may be able to help you with very competitively priced mortgage options for a primary residence or any occupancy/property type, if it can be clearly demonstrated that the business is not a THC/ plant-touching business.

Employee, No Ownership: Employee w2 wages may be used to qualify for most programs, if it can be documented that the employee does not have an ownership stake in the business and therefore the income is for duties performed, rather than sale of cannabis or cannabis derived substances.
OK for owner occupied properties.

Employee, Partial Ownership: The lenders who offer these programs operate within the states where cannabis is legal and are thus able to offer borrowers options, even when income is derived from plant-touching businesses.

Business Owner : There are the same options as Employee, Partial Ownership, but additional options are also available if the funds will be used to support the business or an income property rather than for personal use.

* No tax returns, W2s, 1099s, P&L.
* All personal income + liabilities disregarded. Need proof of on-time payment of all other mortgages.
* qualify with credit score, rents on subject property, reserves
* 1-25 units, we qualify with rents from the subject property. Purchase, refinance, or cash out available on investment properties.

Many of our institutional programs now qualify borrowers without any personal or business income. These loans are made based only on rental income from the subject property and/or equity in the subject property. These programs may work well for borrowers who are not able to qualify using income earned from cannabis businesses or who choose a program that does not require any personal or business income other than rents to qualify.
Favorable rates, long term loans, extremely favorable rates compared to private money.

We work with several private money lenders who are comfortable lending within California to Cannabis business owners and directly to Cannabis business entities. 

Not all real estate transactions are eligible for financing that is based on income derived from Cannabis based businesses, cannabis related business or any plant-touching business including legal hemp and legal CBD derived from hemp. Exception Lending and our partners operate only within legally allowed parameters for this type of lending and reserve the right to opt out of any transaction which does not meet strict regulatory/compliance standards related to Cannabis, hemp and CBD at this time.

For cannabis use properties, these properties are eligible for both short-term and longer term financing (20 year fully amortized or 30 year amortization due in 15)
* Warehouses 
* Commercial real estate for processing/distributing
* Dispensaries (real estate)

Agricultural properties may qualify for financing with low loan to value ratios if there are buildings on the property. We use comparable non-cannabis specific properties to establish property value/calculate maximum loan amount based on LTV of non-cannabis specific properties.
We do not lend on raw land, the value of crops on land or in cultivation facilities, or on renovations/improvements specific to cannabis business. We value properties as though a non-cannabis business were occupying the property. Business equipment loans for cannabis businesses are available if they can be secured with real estate that meets our investors' requirements. 

Availability of these products may change at any time based on lenders' internal policies. We will make every effort to provide you with a financing solution or a referral to a suitable source for financing if we are unable to assist.

Are you looking to find the best mortgage broker in San Francisco? San Francisco Bridge Lender? San Francisco Hard Money Lender? San Francisco jumbo loans? San Francisco cannabis lender? Sonoma County cannabis lender? Cannabis mortgage options? Cannabis property loans? Cannabis investor loans? Let us know how we can help.

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