Sorry, I don't like moochers...

If they cannot scrape up 3% DP by tightening their belt or getting another job, they will not be able to afford to stay in the house.

At one time in my life I had 3 kids and 3 jobs...

Eve

Sounds like "If you can fog a mirror, you can get a loan" for downpayments.  Why don't we just do an Oprah and everyone gets a home!

I read about this program via posts by Erin Bates and Belinda Spillman.  It's always good to be aware of different options.  Perhaps...a good conversation starter.

@Annette Lawrence - I work for CMG and actually just shared a post on this yesterday (as a guest blog for my Mom, Belinda Spillman) - 

Here is a link to the blog: 

http://activerain.com/blogsview/5122386/homefundme--crowdfunding-a-down-payment-

AND to answer your question ... what does this product mean to me?

1. I get to help others, proabably a lot of my millennial and GenX peers realize their dreams of homeownership
2. I get to help lead the way into the wave of the future - aka outside of the box thinking to address problems we have in society (ie: the biggest pool of home buyers - millennials and genXers- is struggling greatly to save large sums of money but CAN qualify to buy homes and maintain the monthly payments with low-debt-to-income ratios).
3. I get to REFER PRE-QUALIFIED eager, and ready buyers to REALTORS in almost all 50 states. 

@MichaelJacobs thanks for the tag!

  They won't have any skin in the game.  High risk; potential default on the mortgage.

Thank you for sharing this Annette Lawrence , Palm Harbor, FL 727-420-4041 - I do work with first time buyers and likely will not be looking into this program.  The last first time buyer I closed in Sept. 2017 sale price was $975,000.

You know it's not a bad idea to register for this as a wedding gift. GoFundMe a house!

Kind of defeats the purpose of  down payment, surprised that fanny and freddy are okay with it.

Sounds like another strategy to entice marginal buyers who will have no "skin in the game".

Looks like lenders become very creative, almost desperate to get loans to anyone.....

You got quarter million dollars in the bank?  If you don't can you go inside a bank and walk out with more w/ or w/o a stocking on. I will wait on you looking for a modest cottage here in Silicon Valley.

I do work with FTHB but not with crowdfunding - tells you something about the longevity of the loan IMO if they can't come up with the down payment how are they going to manage the loan, taxes and maitenance of home ownership?

Yes, I am working with first timers but, no, they need to have some skin in the game. I don't want them in the same boat others with 100% were in that lead to the recession.

I don't believe I will at this time.

Yes and no.

Thank you for the information Annette Lawrence , Palm Harbor, FL 727-420-4041 

I read about it, very interesting. In the long run, I'm skeptical of traction this will get.

As long as I'm paid monthly dividends and my % upon sale, I'm good with it.

I see these  gimick loans as another  Start of foreclosures because no skin so no loss!!!

I have seen this for several years now. Many to be wed couples are asking for funds to put toward their new home or their honeymoon. There is a mortgage company in my area that will pay 2% of sales price toward down payment if buyer will put in 1%. I have closed 2 loans this way. It is a conventional program.

Annette,

Not something I would participate in.

Why would "crowds" pay for somebody else's downpayment? Great idea to try... and the matching donation promise is super.

Thanks for sharing this information.

well, maybe not the program for a buyer for one of our listings.... just saying!  I like strongest and cleanest deal.... I'd want to know the flip side of that positive scenario...

No; while I understand the desire of everyone to own a home, it always means much more when it is earned.

I will check it out.

Lyn Sims nailed this one!

It sounds like they are borrowing money to borrow money. I'm of the mind-set that responsible home ownership starts with a little sacrifice like learning to budget and save.

If a young couple comes to you, as an agent, and explain they had crowdsourced a downpayment and demonstrated themselves as qualified buyers, you'd gladly enjoy your commission on their home purchase.

The only difference: The buyer isn't coming to you having already crowdsourced;  instead, this concept prevails on the agent to suggest it as an additional resource.   Once you learn of a viable resource, does being a fiduciary instruct you to simply ignore it because it doesn't jive with your own values?    Clients deserve so much better.

It's remarkable to hear agents harshly judging their own clients after they've collected commissions.  Agents are not and should not be the financial prognosticators of their clients, nor should they be imposing their own value system on them.    

Most my first time home buyers do not need the down payment assistance.

I would need to look at the fine print.

I just had the branch manager of CMG on my weekly radio show for an hour discussing this very subject. The good thing about it is NO fees for the "Home Fund Me" site payable by a buyer, funds are immediately useable so NO seasoning and Realtors, if they wish, can contribute to the cause by donating a part of their brokerage fee. Good deal all the way around. 

Annette Lawrence , Palm Harbor, FL 727-420-4041 This program can help many first time home buyers.