December 2017   Volume 43, Number 12      


Homebuyers Can Now Crowdfund Their Mortgage Down Payments

For many Americans, saving enough money for a down payment has become a major hurdle to buying a home. One lender claims to have found a solution to this problem. Privately-held mortgage banking firm CMG Financial has launched HomeFundMe — a pilot crowdfunding service that’s the first to receive approval from Fannie Mae and Freddie Mac.

To facilitate the crowdfunding process, HomeFundMe received approval from Fannie Mae and Freddie Mac to allow borrowers to accept money from a larger array of potential donors. There is no fee to use the service. However, homebuyers have to get pre-qualified for a loan.

HomeFundMe campaign donors are permitted to give gifts of up to $7,500. For people who earn less than their area’s median income, HomeFundMe is offering to match two dollars for every dollar raised up to $2,500 or 1% of the home’s purchase price. For those homebuyers who earn more than their area’s median income, HomeFundMe will match the funds up to $1,000.

Already HomeFundMe has confirmed that 100 people have used the platform. CMG will continue to pilot the program until next June. Currently HomeFundMe users are required to get a mortgage from CMG Financial, the single lender available on the platform.

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In this issue:

Homebuyers Rush to Riskier Mortgages As Home Prices Rise

Amazon Ventures Into Real Estate With Hire a Realtor Service

Digital Real Estate Platform Home61 Raises $4 Million

Homebuyers Can Now Crowdfund Their Mortgage Down Payments

Millennials Going Over Budget to Buy Homes

National Flood Insurance Program Might Not Be Able to Fulfill Obligations to Homeowners

San Francisco Most Over-valued Market in U.S.

Trump Tax Reform Sparks Fears for California Realtors

Weekly Mortgage Applications Stall Along With Rates and Home Sales

10 Reasons to Schedule a Seller Counseling Session


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