HomeFundMe helps homebuyers increase their down payment amount without charging a fee to crowdfund as 100% of raised funds go to the recipient. Fund contributors can choose to make their gifts conditional to the home purchase.
Additionally, the platform provides homebuyer education and housing counseling. Platform users are incentivized to complete these in exchange for a grant opportunity ranging from $1,000 to $2,500. Once counselling is completed, the platform matches every dollar raised with $2, up to the qualified grant limits.
HomeFundMe also lets users leverage life events as a chance to raise contributions for a down payment by linking to wedding registries and other platforms.
“The down payment tends to be the largest hurdle in the home buying process, and we’ve developed a solution to help remove that barrier,” CMG Financial President and CEO Christopher George said. “Buyers are able to utilize their own community and network of family and friends to increase the amount they have available for a down payment. At CMG, we believe that the home buying process is a community event. We want more people to recognize that there are various ways to purchase a home and become educated in the home buying process.”
CMG Financial said with increased down payment amounts, potential homeowners have more buying opportunities, improved loan terms, and lower or possibly eliminated mortgage insurance.
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CMG Financial has launched HomeFundMe, a platform that allows homebuyers to crowdfund their mortgage down payment.