Crowdfunding has long been a common way for businesses and individuals to raise money for charity, business expansion, product development, and even vacations. Did you know that you can crowdfund the down payment for your home, too?
As bizarre as it sounds, it’s now possible. When you get a standard home loan such as the FHA, you still have to deposit a hefty down payment to get the loan approved. But what if you don’t have the money and don’t qualify for VA or USDA loans? Well, that’s where crowdfunding comes into play. You should always learn about FHA loan requirements and needed qualifications before you start looking into lenders.
HomeFundMe is the first of its kind, a crowdfunding platform launched by CMG Financial. The company is a reputable mortgage lender allowing prospects to secure down payment money with HomeFundMe.
The new and unique platform is targeted toward millennials, who are often under the burden of high student loans and low employment rates across the board. They all want a home of their own, just like the rest of America, “if they can afford the down payment.”
Before HomeFundMe, potential borrowers were typically allowed to get help from their family, friends, employers, churches, or other community nonprofit organizations to take care of the down payment. There are also down payment assistance programs that hook you up with the money upfront, and you get to pay them back in due time.
Thankfully, the new program allows candidates to tell a story that is unique to them. CEO of CMG Financial, Christopher George, said, “This allows you to tell your story. It allows folks to buy into the story of what it is you have, your loan story, your home story”.
The best part about using HomeFundMe is that you can show the funds as gifts, no questions asked by any lender! Of course, it’s the small amounts of donations from hundreds of users that add up at the end of the day.
On top of everything, the platform offers up to $2,500 in grants for prospective homeowners who attend credit education courses. The grant is credited as $2 for every $1 raised organically, capped at $2,500.
All in all, HomeFundMe could be a game changer for all the potential homeowners who can’t pull the trigger simply because they don’t have enough savings to support a purchase decision.