Blog posted On June 13, 2018
HomeFundItTM, the first and only approved down payment crowdfunding platform, celebrated $1 Million raised last week. To date, HomeFundIt has helped 337 families purchase a home with a crowdfunded down payment. The proprietary service is changing lives around the country, one closed loan at a time.
HomeFundIt creates a solution to two of the most common obstacles to buying a home: saving for a down payment and accepting gift money for a down payment. According to Zillow, more than 70% of renters have delayed buying a home because they have been unable to save for a down payment. Skyrocketing rents and rising home prices are straining renters trying to transition into homeownership. That, coupled with massive student debt have especially hurt first-time home buyers looking to buy. Traditionally, giving someone money for their down payment required extensive paperwork and bank statements. Down payment gifts were also limited to close family, religious organizations, or employers. With HomeFundIt, anyone can give, and all documentation is stored in the platform.
Before home buyers start raising funds, they must get prequalified for a mortgage loan. If they are creditworthy, they can proceed with setting up a campaign page online and sharing with family and friends. Anyone who wishes to give, can do so by contributing through this campaign page. Larger gifts will require digital gift letters. HomeFundIt users will also have access to an entire real estate team including a mortgage loan officer, fundraising coach, and housing counselor. Those who choose to complete the complimentary home buyer education or pre-purchase counseling will be eligible for a grant opportunity to have Closing Costs Covered. Home buyer education empowers the home buyer to make informed decisions throughout the process and sets them up for responsible homeownership.
With HomeFundIt, communities are coming together to support their neighbors. Renters struggling to save have the opportunity to grow their down payment, secure a better interest rate, and even offset the cost of mortgage insurance. The online platform integrates seamlessly with wedding registries, so any gift-giving opportunity helps the users take a step toward buying a new home.
HomeFundIt is reaching underserved borrower segments around the country from California to Wyoming to Florida to North Carolina. Recent success stories include all kinds of situations like a family moving across the country, newlyweds and recently engaged couples, a family who suffered the loss of their wife and mother, and a family who lost their previous home to a fire. One common theme throughout all HomeFundIt home buyers is the ability to overcome the down payment obstacle and become homeowners.