You can now crowdfund the purchase of a new home just as you would a charity or business.
Mortgage lender CMG Financial has launched HomeFundMe, the first online platform that allows borrowers to crowdfund the down payment on a home purchase without fees, CNBC reports.
Prospective buyers using the platform will have the backing of mortgage giants Fannie Mae and Freddie Mac.
HomeFundMe aims to help people—like millennials with substantial student loan debt or paying high rent—who want to buy a home but don’t have the money to do so.
“This allows you to tell your story. It allows for folks to be able to buy into the story of what it is you have, your loan story, your home story,” Christopher George, CMG Financial CEO and vice chairman of the Mortgage Bankers Association.
There is no return on investment for the giver. Donations, which can range from $50 to $250, are considered gifts. The platform can be linked to weddings and baby registries.
