CMG Financial, a privately held mortgage banking firm, has launched HomeFundMe, the first industry-approved crowdfunding platform for mortgage down payments.
Unlike crowd-source site GoFundMe.com, HomeFundMe doesn’t charge transaction fees or take a percentage. In an effort to assist first-time homebuyers with better loan terms, and the opportunity to lower mortgage insurance, all funds collected through the platform are directly accessible to the user as a mortgage down payment with CMG Financial as the lender. And, to expand contribution opportunities, HomeFundMe also links to wedding registries and other platforms.
“The down payment tends to be the largest hurdle in the homebuying process, and we’ve developed a solution to help remove that barrier,” Christopher M. George, president at CMG Financial and vice chairman of Mortgage Bankers Association, said in a statement. “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. We want more people to recognize that there are various ways to purchase a home and become educated in the home buying process.”