Exciting news for those in the smoke shop and dispensary industry! Paramount Residential Mortgage Group (PRMG) has expanded its non-qualified mortgage program to now allow business owners in the cannabis industry to apply for home loans. This means that self-employed individuals in states where cannabis is legalized for medical or recreational use can now purchase or refinance their dream homes with PRMG’s new program.
Paul Jones, Director of Non-QM Business Development at PRMG, explained that the program is designed to help those who have been previously overlooked by traditional lending due to the nature of their industry. PRMG’s prime product offering, called “choice stretch prime,” has been updated to allow self-employed individuals in the cannabis industry to apply using bank statements, as well as W-2 earnings from cannabis or 10-99 income.
While most non-QM loans require a 10% down payment and have higher interest rates compared to conventional loans, PRMG’s program provides an opportunity for cannabis industry workers to become homeowners. Jones noted that PRMG has seen an increase in requests for this type of product as more states legalize medical and recreational cannabis.
However, it’s important to note that PRMG cannot use cash deposits to qualify borrowers in the cannabis industry. Borrowers must show their income through merchant processing technology such as Square or PayPal that is tied to their business.
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