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12/27/2016

Loans For Cannabis Business or Employee

Owners and employees of cannabis related businesses can close mortgage home loans. Closing a mortgage loan today is a can of worms. A cannabis grower recently asked me if I am referring to red worms (the type that are great for fertilizing castings) I frowned, no but perhaps in 2017 we may see some Dodd Frank restrictions changed by the new Administration. 

The important thing to know BEFORE you plan to buy a home, or refinance is to prepare in advance. Call and get advice from experts.

The pickle is many marijuana dispensaries, co-ops, growers, and related businesses have struggled with using traditional banks to deposit funds. Also they may have paid themselves or employees in Paypal, cash, bitcoin or other forms of income which aren’t acceptable sources of income. Verified money must be in checking, savings, stock, money market or bond funds in the prior sixty day cycle. Any large deposits over five hundred dollars will not be counted towards down payment, closing costs or reserve funds.

Net income on Federal income taxes for the two prior years are used for income. A start-up company without Federal taxes cannot fit into standard Underwriting Guidelines. Income is averaged with the two taxes and CPA provides year to date profit and or loss, or if Borrower is an employee a year to date pay stub for the past thirty days is used with w-2 forms of two past years. Income is verified through the IRS and employer sources.

California law opens up a new landscape of legal questions, some of which are being tested by Medical Marijuana businesses. The Medical Marijuana Regulation and Safety Act (MMRSA) began to pave the way for these related businesses but has not answered all the ins and outs of the future for this growing sector. The barrier to using financing tools of federally regulated banks, secondary markets and government loans is that states may have approved; but the Federal government has not. Bankers are not known to be risk takers. FDIC insured big banks are standing away from touching this business sector. New laws will unfold in the court systems. A big ocean of opportunity is ahead. For now there are a few work rounds.

I can assist with your mortgage application. Call and talk about your particular plans. No stodgy bankers, just: kind good advice and direction. In my eyes a farm is a farm and a retail store is just that. 
Caroline Gerardo
NMLS 324982 
29 years mortgage banking

949-- 784-- 9699


12/14/2016

Rate Hike

RATE HIKE





Interest Rates Rising 12/14/2016


 Federal Reserve announced today that it would raise its benchmark interest rate by a quarter of a percentage point.

“In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 1/2 to 3/4 percent,” the Fed’s policy-making committee said in a statement. “The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a return to 2 percent inflation. Merry Christmas”

https://carolinegerardo.eaglehm.com/ 

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