With rent costs soaring and student loans piling up, it’s no secret individuals aged 18-35 need all the help they can get to afford some of life’s necessities, like buying a home. In fact, 70 percent of millennials say that a down payment is the biggest obstacle in purchasing a home, and many prolong their first home purchase due to an inability to secure a down payment.
Luckily HomeFundMe, a crowdfunding service run by CMG Financial, has seen this millennial plight and has come up with a way to provide young employees financial assistance through the world of crowdsourcing. With their new Affinity Portal, crowdfunding for down payment contributions can now be included into employee benefit packages, similar to a 401(k).
“The Affinity Portal…[gives] employers the ability to give their employees the benefits that matter most to them,” Chris George, president of CMG Financial, said in a press release. “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 platform operates around the U.S. Department of Housing and Urban Development’s Average Median Income standard, which assesses if home buyers fall above or below AMI. If an employee can gather up to $2,500 in down payment donations from online crowdsourcing and also falls under AMI, HomeFundMe will donate $2 for every $1 raised. Individuals that rank above AMI will receive a donation of $2 for every $1 crowdfunded up to $1,000 towards their down payment.
On top of financial assistance, the Affinity Portal includes additional perks to guide users into the world of home buying. Fundraising coaching, home buyer education and loan origination are a few provided resources, on top of a support team of lenders, realtors, housing agency coaches and fundraising coaches for extra guidance. Plus, users who secure the Affinity Portal package will not be charged any additional fees, taxes or commissions.
“A typical campaign can cut an employee’s down payment burden in half in many cases,” said George. “We look forward to working with employers to create their customized crowdfunding portals and give their employees a path to homeownership.”