HomeFundMe, a Fannie Mae and Freddie Mac-approved down payment crowdfunding platform, today announced the launch of the Affinity Portal, a program allowing employers to add HomeFundMe to their benefit packages to assist employees in overcoming challenges with amassing a down payment.
The Affinity Portal was created to help employers stand out in competitive marketplaces through innovative benefits packages which build greater retention among the 75.4 million workers in the 18-35 age bracket. Rising rents, sky-high home prices and massive student debt obligations have left this group with challenges when it comes to funding the down payment. Many start out as highly mobile renters, and 78 per cent leave their job in the first five years. Among renters, 70 per cent claim the down payment is the biggest obstacle to home ownership, a key element in a stable workforce.
The HomeFundMe Affinity Portal allows employers to add HomeFundMe to their benefit packages, with the option to elect to match donations in any amount. All HomeFundMe loans are eligible for built-in lender grants of $2 for every $1 crowdfunded up to $2,500 or one per cent. Employers share the customized crowdfunding platform with employees and HomeFundMe will provide all the materials necessary to communicate the benefit. HomeFundMe loans are eligible for a lender contribution of $2 for every $1 crowdfunded up to $1,000 or $2,500 with a maximum of one per cent of the purchase price for first time home buyers. Contribution caps are regulated by the area median income.
“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,” CMG Financial president Chris George said. “The Affinity Portal helps to bridge that gap by giving employers the ability to give their employees the benefits that matter most to them. A typical campaign can cut an employee’s down payment burden in half in many cases. We look forward to working with employers to create their customized crowdfunding portals and give their employees a path to homeownership.”
Benefits of using HomeFundMe through the Affinity Portal platform include: prequalification, fundraising coaching, home buyer education and loan origination. Users will not be charged any taxes, fees or fundraising commissions. All users will receive a dedicated support team consisting of lender, realtor, housing agency coach and fundraising coaches. All funds are Fannie Mae and Freddie Mac-approved and held in escrow until closing.