Test your friends. A crowdfunding campaign can help you buy a home

Car, rent, food, electricity, water, Internet, day care. Those are just some of the expenses that families face at the end of the month. And that’s why it’s so hard to save the money needed for the down payment and closing cost on a home.

Many times, people have good credit and are mentally ready to buy a home, but don’t have the cash for the down payment required for a mortgage. Saving $100 per week for three years would add up to $15,000, which would cover five percent of a $200,000 home and $5,000 in closing cost.

But those numbers are almost a mirage in Miami-Dade county, where the average price of a house stands at $372,000 and makes the dream of home ownership even more distant.

With the Federal Reserve’s recent drop in interests rates and mortgages as low as 3.93 percent on a 30-year loan, it would benefit families to make a quick move to ownership.

That goal is now easier to reach with the HomeFundIt program, which allows crowdfunding campaigns on social network to gather the cash needed for down payments and closing costs.

“This program is approved by Fanny Mae, and relatives and friends can give up to $7,500 without providing documentation for the source of the money,” said Rubén Cruzpino, South Florida manager for CMG Financial, a national lending company based in Plantation.

Cruzpino stressed the program is guaranteed by Fanny Mae and that the process is carried out under the supervision of a coach who helps to organize the crowdfunding campaigns.

The program’s Web page, www.homefundit.com, suggests that people seeking financial assistance explain why they need help and how much cash they seek. The page also displays testimonials from people who have received help from friends and relatives through the program.

Loan officers suggest personal meetings to evaluate the clients’ cases and review documents needed to decide which loans will be best for them.

One of the factors the loan officers evaluate to determine the client’s ability to pay the mortgage is the relationship between debt, monthly expenses and income, known as the debt-to-income ratio.

Buying a house is not an event but a process, said CMG loan officer Leo González.

“The person has to work to improve the credit scores. When we see a credit report, we also analyze which cards they should pay and how much they should pay to pay off or reduce the debt,” González said.

Experts offer other advice for obtaining mortgages more easily and quickly.

▪ If you’re starting or in the middle of the process of buying a house, don’t change jobs. Job stability is one of the most attractive aspects for banks and lenders. In general, if the person changes jobs, it’s preferable that the new job be in the same field, which would imply a move up.

▪ If your car loan is very low, try to pay it off before applying for a home mortgage.

▪ If you’re in the process of buying a house, don’t take on new debt or close a credit card account because those changes limit your credit availability.

▪ The state of Florida has a First Time Homebuyer Program that offers seminars on how to buy and finance a house and obtain the best mortgage possible. In some cases, It can help with $15,000 for the initial expenses. Visit the Web page of the Homebuyer Programs Wizard or call 863-800-1011.

▪ A rent-to-own agreement can help to rent a house with the possibility of buying it later. A salary of at least $50,000 per year and a credit score of 575 or higher is required. Details are available at mid-florida-realty.com/rent-to-own.

For more information contact CGM Financial, 3696 North Federal Highway, Suite 204, Ft. Lauderdale, (954)866-0596

This story was originally published September 23, 2019 at 4:10 AM.