Marijuana Killing Real Estate Deals
Lost a loan because the borrower had applied for a commercial marijuana grow permit in WA State and his purchase transaction was a residential home on 10 acres. The MI underwriter picked up on the grow permit application and denied MI coverage killing my deal. Fast forward a month and another lender closed their loan, apparently their MI didn’t check…but I don’t know for sure. This occurred about four years ago. My u/w center manager still reminds me this is one of her most memorable loans.
Lending on any property that grows will get declined. Private Money is available though..
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