As a W2 Cannabis employee, can I get paid in cash and qualify for a mortgage?
If you are a W2 employee in the Cannabis industry, there is a likelihood that you may be paid in cash versus a traditional pay check. As medical and recreational Cannabis become legal in more states, the hope is that banking institutions will open their doors to marijuana business owners and allow them to have banking accounts to operate and pay their employees. In the meantime, don’t let being paid in cash be a deterrent to buying a home. If you are consider purchasing a new home, it is important to get your ducks in a row and the first step is making sure your is income can be verified.
When getting a home mortgage, the lender requires verification that your income has been received per your employment agreement and is also verifiable.
The following are some important steps to take when starting to plan for a home purchase:
-If you are paid in cash you should still deposit your cash income into your bank account. The lender will want proof of your receiving cash income, regular deposits of your pay into your bank account will document the funds being received. Your banking records will confirm that you are making regular deposits that coincide with your income situation.
-Make sure your employer is keeping good records of your income and tax itemizations. Once you start the application process, the lender may request a signed itemization from your employer to support your weekly/monthly pay and year to date totals. This itemization should include the amount of taxes that are being taken out as well as any other deductions. It is important that the amount of cash your employer states you are netting each pay period, match your cash deposits into your bank account.
-The lender will also ask your employer to complete a Verification of Employment. This document confirms your salary/hourly wage, job title, year to date income and other important details that the lender will review. It is important that the information provided on this form match any records that have been provided from the employer.
Purchasing a home is a dream for most Americans
Don’t let being paid in cash deter you from making home ownership a reality. It is always a good idea to speak with a lender to get pre-approved for a mortgage before you start looking at homes. Feel free to contact me, email@example.com or mobile 303-579-5517, I am happy to help.
About the Author: Michaela Phillips entered the mortgage lending industry in 1994. Throughout her 24 years in the business she’s been one of the top producers for every company she’s worked for. As of 2018, she’s the VP of Mortgage Lending for Guaranteed Rate, Inc. Being a VP at Guaranteed Rate offers many advantages to her and her clients, unparalleled customer service, efficiency, and most importantly, competitive rates.
Michaela enjoys teaching her clients the pros and cons of being a Real Estate Investor, and more so, watching them build their Real Estate “Empires,” large or small, but all successful. NMLS: 312874, Guaranteed Rate NMLS: 2611.