If you are trying to get a mortgage to buy a home, then you probably already know there are many rules and regulations. Indiana lenders set guidelines and have strict rules about all steps in the process of securing a loan. This is largely due to the high risk of lending such a large amount of money. Additionally, many of the rules are in place due to previous mistakes made by the industry that caused a market crash. One of the areas where rules are particularly strict is how you get your down payment.
In general, according to CNBC, banks do not let you borrow your down payment and require plenty of documentation to show where you got your down payment because lenders want to know you can get a down payment yourself. People have tried many ways to get past these strict guidelines. In the past, people have tried crowdfunding to get a down payment and were turned down because of it. However, there is a new option in crowdsourcing that is designed specifically for mortgage lending.
This option is called HomeFundMe and it comes from CMG Financial. It is specifically crowdsourcing for people who want to buy a home. The donations are gifts and not loans. There is no return on investments for those who give either. The program matches $2 to every $1 you raise up to $2,500.
This is a very new concept. Some lenders may still frown upon it. It is a good step forward, though. Many lenders do suggest if you use this option that it is best for trying to boost your down payment and not for getting the whole thing. This information is for education and is not legal advice.