When looking to purchase a home in Oakland County, Michigan for the first time can be a difficult proposition and for 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 in their home purchase these days, and it seems to be a trend that is spreading across the country. It is clear that technology and social networking can be a great way to stay tuned socially and in business, but now it has gone to a whole new level with CrowdFunding to help wanna be homebuyers reach their down payment goals by reaching out socially for assistance.
The CrowdFunding Trends
While crowdfunding has long been a popular trend, until recently it’s been mostly limited to the business world, but this is now changing to the private sector as well. According to a recent article in The Wall Street Journal, crwdfunding for home purchases is on the rise. There’s even a crowdfunding platform specifically for homeowners. HomeFundMe is the first platform specifically targeted to potential homeowners looking to fund 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 potential homebuyers have used the service to help crowdfund their home purchase down payments 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.