It’s simple! MegaStar’s “Fund My Friend” program works through crowdfunding. We at MegaStar understand that with so many industry-wide restrictions regarding sourcing down payment funds, coming up with enough money can be easier said than done. Our new program opens up the ability to receive funds from those outside of your family (think your friends, family friends, local community, etc.), thus bringing your dream of homeownership that much closer to a reality!
What makes MegaStar’s “Fund My Friend” program different from the option of a “Down Payment Fund” on wedding registries or crowdfunding websites?
We’re so glad you asked! When it comes to utilizing the “Down Payment Fund” option on a wedding registry site, what they don’t point out is that when buying a home, your lender needs to know where the funds came from. So even though you’d technically have the money, unless you provided clear documentation from the givers stating that it was all gift donations and not loans, it would be useless for what you need to accomplish.
But what about a crowdfunding campaign? Much like collecting with wedding registry sites, you’ll face the same issues in this situation that you do with funds from a wedding registry “Down Payment Fund” – in any situation, the lender needs to have clear documentation of all donations in order to determine if the funds meet the necessary guidelines. You don’t want to collect all that money only to have your lender reject it!
When it comes to MegaStar’s “Fund My Friend” program, however, your lender knows where each donation comes from and makes sure all required documentation is covered! Unlike today’s crowdfunding or wedding registry websites, MegaStar doesn’t charge you or your donors a fee for processing, holding, or sending the money. You get 100% of the donated funds!