HomeFundMe, a crowdfunding platform that helps home buyers come up with a down payment, has launched Affinity Portal, a new program allowing employers to add HomeFundMe to their benefit packages to assist employees in overcoming the down payment obstacle.
HomeFundMe is approved by Fannie Mae and Freddie Mac as a down payment crowdfunding platform because it allows for a fully transparent and verifiable crowdfunding effort.
The new Affinity Portal program was created to help employers stand out in competitive marketplaces through innovative benefits packages. The goal is to help them build greater retention among the 75.4 million workers in the 18-35 age bracket, the largest demographic of the American workforce, HomeFundMe says in a release.
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 five years. Among renters, 70% claim that the down payment is the primary obstacle to homeownership – 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 share a customized version of the crowdfunding platform with employees, and HomeFundMe provides all the materials necessary to communicate the benefit.
The 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.
“More than ever, employers are looking for ways to retain and attract the best and brightest talent, and millennials are looking for the lifestyle perks that will help them achieve their goals. The Affinity Portal helps to bridge that gap by giving employers the ability to give their employees the benefits that matter most to them,” says Chris George, president, CMG Financial, in the release.
“A typical campaign can cut an employee’s down payment burden in half, in many cases. We look forward to working with employers to create their customized crowdfunding portals and give their employees a path to homeownership.”
Benefits of using HomeFundMe through the Affinity Portal platform include pre-qualification, fundraising coaching, home buyer education and loan origination.
Unlike generic crowdfunding platforms, users are not charged any taxes, fees or fundraising commissions.
All users receive a dedicated support team consisting of lender, realtor, housing agency coach and fundraising coaches.
As mentioned, all funds are Fannie Mae- and Freddie Mac-approved and held in escrow until closing.