How to get a mortgage working in the cannabis industry

Contents
NewCastle Home Loans counts cannabis income.
If you work for a state-legal marijuana business in Illinois or Florida, you can qualify for a conventional mortgage with the same low rate and down payment as any other borrower.
Why most lenders don’t count cannabis income
Many banks and mortgage lenders won’t accept cannabis income. That’s because marijuana is still illegal under federal law, even if it’s legal in your state.
This conflict between state and federal laws makes lenders nervous, especially those regulated at the federal level. To avoid risk, they often exclude cannabis-related income from mortgage applications.
When your income isn’t counted, your debt-to-income ratio goes up. That makes it harder to qualify for a loan or borrow enough to buy the home you want.
NewCastle Home Loans counts cannabis income if you work for a licensed cannabis business in Illinois or Florida.
We can help you secure a conventional mortgage with a competitive rate and a low down payment, just like any other qualified buyer.
What kind of mortgage can I get with cannabis income?
If you work in the cannabis industry, you can qualify for a conventional mortgage, but it depends on the lender. Some lenders, like NewCastle Home Loans, accept cannabis-related income. Others may not.
Government-backed loans (FHA, VA, USDA) do not allow cannabis income. These programs follow federal guidelines, and since cannabis is illegal at the federal level, they consider this income ineligible.
Conventional loans, offered by private lenders, tend to be more flexible. Fannie Mae, for example, permits cannabis income if it's legal under state law and properly documented. However, many lenders still avoid it due to concerns about federal regulations and potential legal risks.
NewCastle Home Loans accepts cannabis income for conventional mortgages in Illinois and Florida. If you're a W-2 employee with no ownership stake in a cannabis business, we can help you get approved with a competitive rate and low down payment.
Here's a customer testimonial:
"Helped me out when my other mortgage lender fell through halfway into closing because I work in the marijuana industry."
Can I get an FHA, VA, or USDA loan with cannabis income?
No. You cannot use income from a job in the cannabis industry to qualify for FHA, VA, or USDA loans.
These government-backed programs follow federal guidelines. Because marijuana remains illegal at the federal level, any earnings from the cannabis industry, whether from ownership or employment, are considered ineligible income.
Here’s how each loan type treats cannabis-related earnings:
FHA Loans → No
Insured by the Federal Housing Administration, FHA loans help buyers with lower credit scores or smaller down payments. But they require income to be legal under federal law, which excludes cannabis-related earnings.
VA Loans → No
Guaranteed by the Department of Veterans Affairs, VA loans are available to eligible veterans and service members. While you can still obtain a Certificate of Eligibility, you cannot use cannabis income to qualify. See "The VA Home Loan and Marijuana-Derived Income."
USDA Loans → No
Backed by the U.S. Department of Agriculture, USDA loans help buyers in rural areas. Like FHA and VA loans, USDA loans require income to be legal under federal law, making cannabis earnings ineligible.
Getting pre-approved first ensures the lender will accept your income, helps set your budget, and prevents delays during the homebuying process.
Can I get a mortgage if I own part of a cannabis business?
No. NewCastle Home Loans is not currently offering mortgages to homebuyers with any ownership interest in a cannabis business.
Even if you own a small percentage of the company, earn a W-2 salary, and do not take self-employment income, most lenders, including us, will classify you as self-employed.
Income from cannabis business owners is generally not eligible for conventional financing because of legal and financial risk concerns.
Steve works as a cannabis grower and earns a high W-2 salary.
However, he owns 5% of the company.
Because his tax returns include a Schedule K-1 showing ownership, the lender would not use his income to approve the loan.
We do offer mortgages to homebuyers who have no ownership interest in a cannabis business. To qualify, you must be an employee of the company, earning income reported on a Form W-2 or Form 1099.
What are my mortgage options as a cannabis business owner?
If you’re self-employed in the cannabis industry or own part of a cannabis business, your mortgage choices are limited.
Check with a state-chartered bank or local credit union familiar with cannabis-related income. Some offer portfolio loan programs designed for self-employed borrowers.
Requirements for a cannabis mortgage at NewCastle Home Loans
If you work in the cannabis industry and are looking to buy a home in Illinois or Florida, NewCastle Home Loans can help. We accept cannabis-related income for conventional mortgages, provided you meet specific criteria.
Cannabis Mortgage Requirements | |||
Credit Score | 620 minimum | ||
Property Type | Single-family home, condo, or 2-to-4-units | ||
Down Payment |
3% minimum | ||
Loan Amount | From $150,000 to $806,500 | ||
Income Verification | Pay stubs and W-2 statements from a state-legalized marijuana business. | ||
Funds to Close | Bank statements, gift letters, or other documents proving you have enough money to cover the down payment and closing costs. |
At NewCastle Home Loans, we understand the unique challenges faced by professionals in the cannabis industry. Our team is here to guide you through the mortgage process, ensuring a smooth and efficient experience.
Here's another cannabis mortgage customer testimonial:
"Could not rate New Castle high enough! Jim and his team were a dream to work with. "
Get approved for a cannabis mortgage: step-by-step.
At NewCastle Home Loans, we make it easy for cannabis industry professionals in Illinois and Florida to get approved for a mortgage. Our streamlined process ensures you know exactly where you stand before you start house hunting.
Step 1: Apply Online
Start by completing our online application. You'll check your credit, upload income documents, and import bank statements. This helps us assess your financial situation accurately. (How a mortgage credit check affects your score)
Step 2: Receive Your Pre-Approval Letter
Once we've verified your financial information—often on the same day—we'll send you a verified mortgage pre-approval letter. This letter confirms your readiness to buy and demonstrates to sellers that you're a serious buyer. (Why a verified mortgage pre-approval is better)
Step 3: Close in 2 Weeks
With your pre-approval in hand, make an offer on your desired home. After the seller accepts, we'll work diligently to close your mortgage in as little as two weeks.
Getting pre-approved is the first step toward homeownership. It provides clarity on your budget and strengthens your position when making an offer.
Here's another cannabis mortgage customer testimonial:
"Newcastle Home Loans is an excellent mortgage lender who provided top-notch professional guidance throughout the entire application process which led to a successful closing."
Ready to get started?
What to do if your mortgage is denied because of cannabis income
Being denied a mortgage due to cannabis-related income can be disheartening, but there are steps you can take to move forward:
1. Add a Co-Signer
Consider involving a co-signer with a traditional source of income. A co-signer doesn't have to live in the home, but can strengthen your application by providing additional financial backing. (How a mortgage co-signer can help you buy a home)
2. Explore Different Properties
Reassess your budget and look into more affordable properties. Adjusting your expectations can increase your chances of loan approval and help you find a home that fits your financial situation.
3. Work with a Cannabis-Friendly Lender
Seek out lenders experienced in working with cannabis industry professionals.
Some lenders, like NewCastle Home Loans, have helped many individuals in the cannabis sector secure mortgages. These lenders understand the nuances of cannabis-related income and are more likely to consider it in your application.
Remember, the legal landscape surrounding cannabis is evolving. Guidelines for government-backed loans and the acceptance of cannabis income may change in the future.
Staying informed and collaborating with knowledgeable professionals can help you navigate these changes effectively.
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