Have you heard of house down payment registry programs? If not, let me tell you all about how they work, and about one in particular that I recommend looking into.
House down payment registry programs are an alternative to a regular wedding registry. It’s where you register for help building a down payment for your future home. Similar to other online crowd sourcing platforms, the gifts that are given to couples in house down payment registry programs are all monetary. However, the funds have a specific purpose. These funds are crowd sourced to be used for a future real estate purchase, unless the couple changes their mind about buying a home. It’s the first, and only, platform of its kind designed by a mortgage lender, meant to help home buyers buy a home sooner, with a larger down payment.
There are engaged couples out there who may be interested in house down payment registry programs, but are unsure if they are right for them compared to traditional wedding registries. For some, monetary registries, especially when the funds are used for something practical, may be much more appealing. The key is doing your research to see if house down payment registry programs are right for you and your partner. If you already have enough “stuff”, a monetary registry may be the way to go.
House Down Payment Registry Programs: Are They Right For You?
This post is going to explain what a house down payment registry program is, and review if it may be right for you and your partner. In this post, I will go into detail about one exceptional down payment program, HomeFundIt™, and how it works*. This program is unique, and I was lucky enough to learn about it right from those who run it. Big thanks to Doug Remensperger, NMLS ID# 326740 and his daughter Julie, for the information and details on HomeFundIt. They were very helpful when writing this post.
Let’s get into it!
*No compensation was received while writing this post. All opinions are mine, and mine alone.
WHAT IS A DOWN PAYMENT AND WHY DO I WANT A BIG ONE?
We all know how house down payments work, right? If not, let me give you a brief synopsis.
A down payment is a large sum of money that is initially applied to the purchase of a home. It is typically around twenty percent of the purchase price. However, it may be more, or less. It all depends on what is required by the type of loan that will subsequently cover the rest of the purchase price. The remaining amount above the down payment becomes a loan, and is paid back, with interest, over the course of time. The higher the down payment, the less loan needed. This is a good thing, because mortgage payments can be a huge part of your monthly take home pay. Plus, they last a long time.
HOW DO HOUSE DOWN PAYMENT REGISTRY PROGRAMS WORK?
Though there are house down payment registry program options out there, at the basis they work very similar to each other.
Essentially, engaged couples create a site through the program of their choice and add it to their wedding registries. According to the folks at HomeFundIt, their program is a crowd sourced account where friends and family donate to help engaged couples reach their down payment goals. A site is created by the couple, and the link to that site is provided to wedding guests so they can choose how much money to gift the couple, through the site.
Once funds are gifted, they stay within the program until they are used for a down payment. They can also be transferred to another account for use other than a down payment (more on that later).
WHAT SHOULD I KNOW ABOUT HOMEFUNDIT, SPECIFICALLY?
Before we get into the pros and cons of house down payment programs, I want to delve into HomeFundIt, as the kind folks over there took the time to share details with me. They also alerted me to what these programs are, and after further research, I can see how beneficial they can be to all involved.
HomeFundIt is a great option because there are some benefits to how they operate. For example, their company, CMG Home Loans, NMLS ID# 1820, does not take a percentage of the donations. Nor do they charge any fee for using a credit card. This is a rarity among other types of wedding registries, as there is typically a surcharge for monetary gifts. More on HomeFundIt, and what makes it special, below.
MATCHING PROGRAM
A huge benefit of working with HomeFundIt is their matching program. In this program, they match two for one on the first $1,000 donated, for a maximum of a $2,000* grant from them. An example would be if a guest gifts $50, HomeFundIt will match $100. This matching trend continues until a $2,000 limit is reached. One caveat is what when it comes to purchasing a home, the loan needs to be with CMG Home loans in order to be eligible to keep the matched amount. More details can be seen below.
More Details On The Matching Program
*Grant is a $2-to-$1 match on regular down payment gifts received on HomeFundIt™, up to the lesser of $2,000 or 1% of purchase price for first time buyers, as defined by Fannie Mae, who complete homebuyer education prior to signing a purchase contract. Talk to your loan officer or visit your HomeFundIt dashboard for next steps, or you can also find a housing counselor near you by visiting https://www.hud.gov/counseling.
Grant funds are applied to nonrecurring closing costs. If closing costs are fully paid by seller or interested party, grant funds can be used to buy down the rate. Grant funds cannot be used towards a down payment. Visit here for complete terms and conditions.
NO EXPIRATION, AND THE MONEY CAN BE USED ON OTHER THINGS
Says Julie Remensperger from HomeFundIt, “even if some couples may not want to buy a home for a year or two after the wedding, it’s still a worthwhile addition to their registry since the money and account never expire. If they decide not to use the money to purchase a home they can withdraw the money at any time for something else. The only drawback when doing so is that they don’t get the $2,000 matching unless they do a loan.”
RATE REBOUND OPTION
There are some benefits with working with CMG Home Loans, too. For example, HomeFundIt can be coupled with another program, called Rate Rebound.
Within the Rate Rebound program, if you buy a home and interest rates drop, you can refinance without lender fees*. Because interest rates are relatively high right now, compared to recent years, this is huge. Many couples are hesitant to buy and want to wait to see if rates drop. If they do, this program has you covered to save on your interest, long term. More details on Rate Rebound are below.
More Details On The Rate Rebound Option
*CMG Home Loans will cover all customary lender fees (processing fee, administrative fee, tax service fee, appraisal fee and credit report fee). In addition CMG Home Loans will also credit the borrower up to $1,000 towards additional third-party fees. This offer does not cover discount points. Credit cannot exceed total fees.
Rate Rebound is only valid on future conventional conforming, government, and jumbo loans in our retail channel (future Construction Loans, All in One, HELOCs, Bond or HFA loans are excluded). There may be additional restrictions based on investor. Offer may not be redeemed for cash or credit and is nontransferable. The offer cannot be retroactively applied to any loans. Offer may not be used with any other discounts, promotions or interest-only/buy-down and second lien products.
This offer is subject to changes or cancellation at any time at the sole discretion of CMG Home Loans. Additional restrictions/conditions may apply. This is not a commitment to lend and is contingent on qualification per full underwriting guidelines. Program will be available on loans disclosed on or after 11/1/22. Program is applicable for refinances 6 months after closing up to 5 years from original note date and with a net tangible benefit which includes a rate reduction of 0.5%, going from an ARM to fixed rate, reducing loan term, movement to a more stable product, or a lower principal and interest payment. By refinancing the existing loan, the total finance charges may be higher over the life of the loan.
SUBSTANTIAL GIFTS CAN BE GIVEN WITH NO ADDITONAL DOCUMENTATION
Julie also shared with me that gifted amounts can be as much as $5,000 on a credit card with no extra documentation needed, such as a gift letter or bank statements. Of course, these product details are exclusive to CMG Home loans. However, once a site is created couples are welcome to work with any realtor they choose when it comes to the home purchase.
THE UP-IT FEATURE
Another benefit of HomeFundIt is the “Up-It” feature. This feature allows the couple and their friends and family to shop online at over 1,000 participating stores that contribute a portion of their purchase back to their page. For example, Target gives five percent back on purchase. This means that $100 spent at Target can mean $5 back to the couple’s campaign, which is then matched $10 by HomeFundIt, for $15 added in with little extra effort. The couple themselves can sign up for this, helping to put those added wedding expenses back into their accounts. A list of participating stores can be found here.
PERKS FOR SHARING ON SOCIAL MEDIA, AND LINKS
The last big benefit of using HomeFundIt and CMG Home Loans is that CMG will give $10 a day*, on up to three platforms, for sharing your campaign on social media. This is a huge win, if you’re the kind to share.
*CMG Home Loans will give $2 for every $1 raised via online down payment gifting on the HomeFundIt platform or via shopping rebates earned using Up-It, or $10 for every social share (up to one share per person, per platform, per day) up to the lesser of 1% of the purchase price, or $2,000.
Some additional links about the program:
WHAT ARE THE BENEFITS OF HOUSE DOWN PAYMENT REGISTRY PROGRAMS?
Now that we’ve deep dived into HomeFundIt, let’s talk about these programs in general. There are many reasons why couples opt to use house down payment registry programs in lieu of just a regular wedding registry.
Julie from HomeFundIt shared with me, “my brother got married last year and he and his wife already had most of the home items you’d typically need. They created a small registry for those who wanted to buy them a gift but asked others to donate to HomeFundIt. They were able to raise just shy of $10,000 and he continues to raise funds using the Up-It feature. His page can be seen here.”
To summarize, the benefits of house down payment registry programs, including HomeFundIt:
- It’s a way for wedding guests to help with your future home purchase
- Most couples don’t need items from a regular wedding registry anyway
- The funds can really add up and be a significant amount towards a down payment
- Features are available in the program to allow for continued growth after gifts are made
- Gifts can be as much as $5,000 without supplemental documentation
- Users can hire any realtor they want when it comes to the actual home purchase
- The down payment registry link can be added to a “regular” gift registry. This allows couples to have both options available for wedding gifts
As you can see, there are a lot of benefits. If a client decides not to buy a home they can pull the raised money into their own bank accounts. Those funds can be used on any items they want, too. There’s no missing out on the funds if you don’t end up buying a home.
ARE THERE ANY CON’S TO HOUSE DOWN PAYMENT REGISTRY PROGRAMS?
To be honest, there aren’t really downsides to home registry down payment programs. Especially not the one highlighted in this post, HomeFundIt.
The whole purpose of these programs is to benefit the user and to raise money. The cons may be that if a user doesn’t want to register for money, or has zero intention of buying a home and feels strange telling others they are, these programs may not be for them. One limitation of HomeFundIt is that if the user registers with it and then decides not to get a loan with CMG Home loans, they will not be eligible for the $2,000 matching donation money, which can help with closing costs. They still get all the money donated to them, though. Those funds never expire and can stay in the account as long as needed.
In short, there are very few reasons why these programs wouldn’t appeal to engaged couples.
THOUGHTS ON USING HOUSE DOWN PAYMENT REGISTRY PROGRAMS
Friends, I’m sold on using house down payment registry programs. This is especially true if you and your fiancé are even the least bit interested. These programs specialize in first-time home buyers, and can really help couples out as they become home owners in their new marriages. I am particularly impressed with HomeFundIt, and it’s many benefits and features. It’s such a rewarding way for friends and family to contribute towards something that really helps couples build their future together. Happy wedding planning!
Some additional links if you’re interested in learning more about HomeFundIt:
More On Gifts From Hummingbird Wedding Advice
13 Free Wedding Gifts That Newlyweds Actually Want
Wedding Gifts I Still Use After Five Years Of Marriage
Wedding Anniversary Gifts: The First Ten Years
Did you find this post helpful, inspiring? PIN it to your Wedding Budget or Wedding Traditions Board on Pinterest!
Leave a Reply