A new benefit scheme by real estate crowdfunding platform HomeFundMe gives employers the chance to offer employees a new benefit that will help with the down payment on a house. Currently, many employers offer numerous benefits to their employees to help keep them satisfied and which include paid time off, contributions to their 401(k) account and health insurance, but this scheme offers something different.
According to the article in Housing Wire.com, the real estate crowdfunding platform is approved by Fannie Mae and Freddie Mac and was created by a privately held mortgage banking firm called CMG Financial. Borrowers using the crowdfunding platform have to use CMG Financial as their lender, but this does come with several benefits. Using the Affinity Portal program provided by the crowdfunding platform, employers can contribute directly to their employee's crowdfunding account, helping them to raise sufficient funds for a down payment on a house.
To do this, employers can add HomeFundMe to their benefits packages and have the option of matching any donations in any amount. All employers must do is to share the real estate crowdfunding platform with their employees and HomeFundMe provides all the other necessary materials to educate people on the benefit.
Apparently, some loans qualify for a lender contribution of two dollars for every one dollar that has been crowd-funded up to 1% of the purchase price or $2500 if the buyer earns less than the average median income. For potential homebuyers who earn above the average median income, they can receive a lender contribution of two dollars for every one dollar that has been crowd-funded up to 1% of the purchase price or $1000. Some of the loans are also eligible for a listing agent or buyer contribution of 1% towards the down payment.
Additional benefits provided by the fund include fundraising, prequalification, loan origination and homebuyer education. Unlike other crowdfunding platforms, users aren’t charged any fundraising commissions, fees or taxes. People using the site receive a dedicated support team that includes a housing agency coach, fundraising coach, realtor, and lender. All money raised is held in escrow until closing.