Crowdfunding to get down payment on home
WSFA/NBC - Sometimes the toughest part about buying a home can be coming up with a down payment.
For many young Americans they're already dealing with high rent payments and college loan debts, there's just no extra money to get into your own home.
Now there may be a new option. You may be able to use crowdfunding to get others to help you with that down payment.
"This allows you to tell your story," said Christopher George the CEO of mortgage lender CMG. "It allows folks to be able to buy into the story of what it is you have, your loan story, your home story."
So mortgage lender CMG is launching HomeFundMe. It's an online platform that lets home buyers talk about their needs and get tax-free cash gifts to help with the down payment on a home. In the past lenders would only allow down payment help from family members, employers, non-profits, and religious organizations. It also required a lot of documentation.
This new program has the blessing from some major mortgage companies.
"What we're doing today is trying to test and learn a variety of solutions because the preferences for today's home buyers have changed significantly," said Jonathan Lawless with Fannie Mae. "There is no silver bullet to solving a problem as hard as how do you find a down payment."