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CROWDFUNDING
FOR A MORTGAGE
Soon-to-be newlyweds regularly compile
their wedding registries at locations like Target
or Bed Bath & 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.
is 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."
The
percentage
of subprime
delinquencies
year-
over-year.
Source: Fitch Rating's U.S. RMBS
Servicer Handbook for October 2017
STAT INSIGHT
27%
