Soon-to-be newlyweds regularly compile their wedding registries at locations like Target or Bed Bath and Beyond, but what about for a mortgage down payment?
Mortgage Lender CMG Financial recently revealed their new platform HomeFundMe, which is essentially a crowdfunding website like GoFundMe that goes toward a down payment on a home without fees, but with the backing from the government-sponsored enterprises Fannie Mae and Freddie Mac.
According to an article by CNBC, prior to HomeFundMe, down payment assistance could only come from family members, employers, community nonprofits, and churches as long as they had significant documentation. Lenders needed to be sure buyers weren’t borrowing for the down payment because that would mean they were adding debt on top of their mortgage payment, making them less likely to be able to make their mortgage.
This unique idea is another way to assist millennials, who have openly said they are interested in homeownership, be able to put action to thought. Student loan debt is at an all-time high, and with high rent costs and low savings, the down payment on a house has kept homeownership seemingly out of reach for the generation.
Additionally, prospective homeowners can attend free credit education classes and apply for grants of up to $2,500. Once they have done that, the platform will match donations at $2 for every $1 raised, up to $2,500.
CMG has looked into the program regarding advertising dollars and believes that it's something they would otherwise spend either through the internet or social media, so they’ve put their money where they think it has its best use.
“Our tagline is, 'Fund your way home,’” said Christopher George, CEO of CMG Financial to CNBC. “We think homeownership still is very sensible and, done correctly, is a good idea to step forward toward wealth, stability, and quality of life."
To read the full report, click here.