There’s a new program approved by Fannie Mae and Freddie Mac, that will allow companies to help workers with a down payment on a home, similar to how employers contribute to company 401(k) plans.
It’s called HomeFundMe, and allows home buyers to crowdfund their down payment from several sources, including their employer. It was created by mortgage banker CMG Financial with the idea that companies might offer contributions directly to an employee’s HomeFundMe account as part of their benefits package. If employers choose, they share the crowdfunding platform with employees, and then have the option to match employee donations to the account, in any amount they choose.
A few years ago, the idea of companies offering to help workers with a down payment may have seemed unlikely, but as unemployment has dropped dramatically over the last few years, employers are now actually having to compete for quality hires again. In a market where a company is looking to attract employees, offering participation in a program like this could make a big difference. And of course, it’s another welcome option to the current available tools borrowers can take advantage of in saving for their purchase.
Some loans may also be eligible for a lender contribution of $2 for every $1 crowdfunded, up to $2,500 or 1 percent of the purchase price. Buyers who have incomes above the average median income can receive a lender contribution of $2 for every $1 crowdfunded, up to $1,000 or 1 percent of the purchase price.
What do you think? Will companies begin to add this option to their existing benefits? Would it entice you to work for them if you were seeking a job? It certainly seems like with the large number of millennials seeking to become first time buyers, and the desire of growing companies to hire the best and brightest, this has the potential to help. Especially in some of the high growth urban markets, where price affordability for first time buyers is tougher.
If you’re looking to buy, want to know more about your down payment program options, or have any questions at all, contact us today!