I feel like I am always receiving emails about the latest available loans, or recommendations on how to help people afford a home purchase. While I am not an expert in home loans (but I know some great mortgage brokers who are!), I am on top of showing people the latest information I find regarding funding resources. One resource I just learned about is the campaign based funding platform, HomeFundMe.
Now, I should disclose that I do not have any experience with HomeFundMe, so I am not necessarily recommending. More like letting you know they are out there as a funding resource should you be looking into everything that is available. How does HomeFundMe work? Here is what I learned so far.
- You can create a user account for HomeFundMe with either your email address, or integrate it with your Facebook account to make sharing your campaign easier.
- You are only able to launch a campaign after you are prequalified through the website. If you do not prequalify, you are not able to launch a campaign. If you are not comfortable, or don’t want to fill out a loan application online, HomeFundMe says that you are able to contact a Fundraising Coach online who will connect you with a Loan Officer.
- Using visuals such as pictures or videos are recommended when creating your campaign in order to help you “share your story” and your goals. Your campaign can be shared through direct messaging such as email or across social media platforms.
- HomeFundMe provides a “Fundraising Coach to help with campaign strategies and to walk you through the home buying process. The Loan Officer guides you through the mortgage financing process, including any down payment assistant resources you might be able to leverage. Home Fund Me also provides numerous educational opportunities so you know what to expect throughout the process. Having someone on your side helps you navigate the various steps and be prepared for a timely closing.”
- A campaign lasts for 12 months after receiving the first donation, with the expectation being that you will close on a home in that amount of time. If you do not, your campaign will be evaluated and you may be able to obtain an extension if there is potential to obtain the goal and if you desire.
- A donator has the option of making their gift a “conditional” or “non-conditional” gift, meaning that conditional gifts will only be disbursed if you close on a home, while non-conditional gifts will be disbursed to you regardless on whether you meet your campaign goals. If you make more than your goal you get to keep the extra funds, which could help make a larger down payment.
A lot of information! I don’t have any data on success rate or experience at this time, but I am interested to see whether this program gains traction. There are questions regarding how the gifts from these campaigns would account or be represented to a loan officer, whether it would cause extra steps. I don’t have this answer, though I would be interested in speaking with one of HomeFundMe’s in house brokers to see how they would make it work.
What are your thoughts? Would you consider using HomeFundMe when looking at saving for a down payment on a home? Would you contribute to the campaign of someone looking to purchase?