SAN RAMON, Calif.--(BUSINESS WIRE)--CMG Financial, a privately held mortgage-banking firm, today announces the launch of HomeFundMe; the first industry approved crowdfunding service providing homebuyers the support, education and platform they need to crowdfund a mortgage down payment.
HomeFundMe helps potential homeowners increase the amount of their down payment – resulting in more buying opportunities, better loan terms, as well as lowering and possibly eliminating mortgage insurance. Whether an individual already has their down payment or is struggling to save, this platform helps users to better position themselves financially and creates a more responsible homebuyer.
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.
The National Association of REALTORS® reports buyers 36 years and younger (Millennials/Gen Yers) are the largest share of homebuyers at 34 percent. Forty-six percent of those under the age of 36 not only report high amounts of debt but also reported having student loan debt with a median loan balance of $25,000. This and increasing rental costs have been a huge barrier to saving for a down payment towards a home that many within this age range don’t believe they can overcome.
“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,” said Christopher M. George, President and CEO, CMG Financial and Vice Chairman, Mortgage Bankers Association. “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.”
HomeFundMe also links to wedding registries and other platforms so users can leverage life events as an opportunity to accept contributions toward the down payment on their dream home. There is no fee to use HomeFundMe and all the funds collected through the HomeFundMe platform are directly accessible to the user as a mortgage down payment.
For more information on HomeFundMe, please visit: https://www.homefundme.com/
ABOUT CMG FINANCIAL
CMG Financial is a well-capitalized, privately held mortgage-banking firm founded in 1993. The company makes its products and services available to the market through three distinct origination channels including Retail Lending, Wholesale Lending, and Correspondent Lending.
CMG Financial is licensed in all 50 states, and the District of Columbia, and holds federal agency lending approvals with HUD, VA, RHS, GNMA, FNMA and FHLMC. Throughout the mortgage banking and housing markets, CMG Financial is widely known for responsible lending practices, industry and consumer advocacy, product innovation, and operational efficiency.