Crowdfunding For Home Purchases On The Rise

Dated: 12/05/2018

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Crowdfunding For Home Purchases On The Rise

Crowdfunding



For many potential buyers, one of the biggest obstacles on the road to homeownership is saving for a down payment. But thanks to a new technology trend, some savvy buyers are turning to their friends, family, and social networks for help.

While crowdfunding has long been a popular trend, until recently it’s been mostly limited to the business world. But according to arecent article in The Wall Street Journal, crowdfunding for home purchases is on the rise. There’s even a crowdfunding platform specifically for homeowners.HomeFundMeis the first crowdfunding platform specifically targeted to potential homeowners looking to crowdfund a down payment. Potential homeowners are given 12 months to reach their down payment goal, and all funds are wired from an escrow account to the seller when buyers make their property purchase.

HomeFundMe is still new (the platform launched in October 2017), but results so far are promising; according to the WSJ article, approximately 400 buyers have used the service to help crowdfund their home purchase since the launch.

The Takeaway

If you’ve been thinking about buying a home but haven’t been able to save for a down payment, crowdfunding could be a way to make your dreams of owning a home a reality.

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Tricia Schult

As an agent I am here to Work With/For You. I take your trust seriously. I work hard to provide my clients with the most positive real estate experience possible. A vital part of today's real est....

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