Technology is making it possible to buy a home in novel ways.


Launched by CMG Financial, HomeFundMe is a crowdfunding website that allows family, friends, and others to contribute to your down-payment. One of the main advantages of using the site is that contributions are properly documented to ensure lenders accept the money as legitimate down-payment funds. According to the CEO of CMG Financial, the idea behind the project is not to fund the entire down-payment, but to add to the borrower’s existing funds, possibly eliminating their need to pay private mortgage insurance.


There has been criticism about this kind of project. It essentially allows individuals and families with less equity to acquire more real estate. This may lead to borrowers who appear more secure than then they are, and increase mortgage-defaults. On the other hand, if borrowers have adequate income, but their savings are low due to high student-debt payments, lower income during the recession, or high rents in their local market (all issues faced by a large number of first time Santa Cruz home buyers), they will likely be strong borrowers who can benefit from this kind of program.


HomeFund Me could result in people, especially millennials, getting into homes sooner. This allows young families to start building wealth sooner and plant roots, both of which can lead to healthier communities. If you have a prospective first-time homebuyer in the family, and are interested in learning more, check out If you’d like to discuss creative down-payment solutions and purchasing your own piece of Santa Cruz Real Estate, give me a call: (831) 600-6550.

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