A new program allows employers to help pay for their workers’ down payment on a home, similar to how companies contribute to a 401(k).
HomeFundMe, a Fannie Mae and Freddie Mac-approved down payment crowdfunding platform, allows borrowers to crowdfund their down payment from several sources, including their employer. CMG Financial, a mortgage banking firm, created the HomeFundMe program. Employers can contribute directly to employees’ HomeFundMe accounts to help raise funds for a down payment on a home.
According to HomeFundMe, “The HomeFundMe Affinity Portal allows employers to add HomeFundMe to their benefit packages, with the option to elect to match donations in any amount. Employers simply have to share the customized crowdfunding platform with employees, and HomeFundMe will provide all the materials necessary to communicate the benefit.”
This program was created to help employers stand out in competitive marketplaces through innovative benefits packages to build greater retention among the 75.4 million workers in the 18-35 age bracket, the largest demographic of the American workforce. Rising rents, sky-high home prices and massive student debt obligations have left this group with more challenges than ever when it comes to funding the down payment to purchase a home. Most younger employees start out as highly mobile renters, where 78% leave their job in the first 5 years. Among renters, 70% claim that the down payment is the #1 obstacle to home ownership — a key element in a stable workforce.
The HomeFundMe Affinity Portal allows employers to add HomeFundMe to their benefit packages, with the option to elect to match donations in any amount. Employers simply have to share the customized crowdfunding platform with employees and HomeFundMe will provide all the materials necessary to communicate the benefit. HomeFundMe loans are eligible for a lender contribution of $2 for every $1 crowdfunded up to the lesser of $2,500 or 1% of the purchase price if the home buyer falls under the Average Median Income (AMI). Home buyers over the AMI can receive a contribution of $2 for every $1 crowdfunded up to the lesser of $1,000 or 1% of the purchase price. In addition, some HomeFundMe loans are eligible for a buyer or listing agent contribution of 1% towards the down payment. Contribution caps are regulated by the area median income, visit HomeFundMe.com for details or Click Here for the source and more information.
Fast Facts
Mortgage Rates: Week ending 1/11/18
30-year fixed: 3.99%
Fees/points: 0.5%
15-year fixed: 3.44%
Fees/points: 0.5%
About Jaleesa Peluso, Orange County Realtor & Certified International Property Specialist
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