Crowdfunding for getting down payment funds?
Yes, it is true. According to Realty Times (12/10/14 Jaymi Naciri), there are several crowdsourcing sites that help home buyers request gift funds for the required down payment. It works like the traditional bridal and baby registry services that have now moved online.
Here are several down payment registries to check out:
Hatch My House is a free online gift registry to obtain funds for home purchase down payments and even for home renovations.
Down Payment Dreams is another gift registry that charges a $50 registration fee, refundable if prospective buyers use its real estate agent referral service to buy a home. Note: if you are already using a top notch agent, (like me, Kimberly Barton, REALTOR!), register and talk with your current agent about the service fee.
Feather the Nest lets couples set financial goals and ask for contributions from family and friends; and it lets users share pages with pictures and videos on social media providing updates when someone makes a donation.
Just remember that both the FHA and VA loan products permit the entire down payment amount to be gifted. However, conventional loan products may only allow a portion of gift money if the down payment is less than 20 percent. Be sure to check with your lender or real estate agent for specifics based on your situation.
Let me know how I can help! Happy home buying.
