Crowdfunding Your Mortgage Down Payment

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Using crowdfunding for your next real estate deal is one of the hottest things happening with real estate investing.  Now there’s a new startup that wants to help potential homeowners use this alternative form of financing by helping them come up with their down payment.   HomeFundMe wants to help buyers increase the amount of their down payment, which they say results in more buying opportunities, better loan terms, and even lowering or eliminating PMI.  Their goal is to create a more responsible home-buyer by better positioning them financially.  Indeed, the fee-free platform can even link to wedding registries and other life events as an opportunity to accept contributions toward that down payment.

HomeFundMe users are incentivized to complete homebuyer education or housing counseling in exchange for a grant opportunity ranging from $1000 to $2500. The counseling fee is covered, and once completed, HomeFundMe will match donations at two dollars for every dollar raised up to the qualified grant limits. There is no fee to crowdfund, 100% of the funds raised go to the recipient. Additionally, contributors have the option to make their gift conditional to the home purchase.

diana olick

 

Click here for more information at HomeFundMe.

Click here to read more on RealtyCheck.

 

 

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Director of Education & Outreach, National Real Estate Investors Association

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