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Banking + Cannabis: The Road to Homeownership

Theresa Grant
Homebuying Resources

The cannabis industry is booming and PHMC is here to help get you home. A generally cash-only business may make other lenders say, “not today,” but Platinum counters with “we’ll find a way!” Our team of mortgage specialists have the expertise and resources to help navigate on what’s available as a cannabis professional.

Here are the three (3) big things that you must prove to a lender when applying for a mortgage:

  1. You must live and work in a state where marijuana is legal.
  2. You must provide financial records for a two-year history within the industry.
  3. W-2 income (with no ownership interest) must be verified with the Selling Guide requirements.

The big takeaway here is that if you don’t have ownership in a cannabis business you generally have the “All Clear” to move forward with your dreams of becoming a homeowner with Platinum Home Mortgage!

How does the law affect cannabis banking?

Unfortunately, it remains very difficult for anyone who owns or operates dispensaries, growers, and distributors—while they are earning income legally under state laws it’s not yet federally recognized which means they won’t have the same banking privileges as other business sectors. For example, many owner/operators in the industry are still unable to:

  • Take out a loan
  • Write checks
  • Do credit card transactions
  • Set up accounts to deposit money

Because the banking system is regulated by federal law, it is seen as risky to do business with marijuana-related projects. So, many financial institutions aren’t comfortable lending money to those who have perfectly legal cannabis-industry income. 

While this issue decreases the path to homeownership for many in the business, there is light at the end of the marijuana encased tunnel. 

Industry advocates have been urging lawmakers to pass the SAFE Banking Act. Here’s a peak into what’s being proposed, it would allow marijuana businesses to use banking services and offers protection to banks to not be fined solely for banking cannabis. 

Legalizing pot at the federal level would be a gamechanger. Cristina Marcos with The Hill, reported the House passed legislation on April 1, 2022 to legalize marijuana nationwide and eliminate the longstanding criminal penalties for anyone who distributes or possesses it. The measure now goes to the Senate.

Until financial institutions are legally allowed to do business with cannabis companies, obstacles will most likely continue to impact these professionals who want to become homeowners, but the light is bright on the horizon.

Contact Platinum to learn more information.

    About the Author

    Theresa Grant

    Communications Associate


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