Divvy Homes Benefits

Divvy homes is a new rent-to-own company that wants to make home ownership more attainable for millions of Americans. They do this by offering an alternative to traditional mortgages with a three-year lease agreement and a savings account that helps customers inch their way to homeownership.

Divvy has received mixed reviews, but its business model avoids some of the more shady rent-to-own companies. It also offers a lower down payment than typical mortgages.

Buying a home

If you want to buy a home but you don’t have the money for a down payment, divvy homes may be a good option. These companies offer rent-to-own home buying programs that help you build equity and get creditworthy for a mortgage.

The company only asks you for a 2% down payment and a good credit score in exchange for helping you save for a home purchase. Divvy is one of many companies that are working to make homeownership more accessible for financially vulnerable people, especially those with poor credit or little down payment savings.

During your lease, you’ll pay a monthly rent amount that covers the market-rate rent and an extra “home savings” fee to set aside money for a future down payment. During the rental term, Divvy will cover all maintenance and repairs to the home.

If you decide not to buy the home, Divvy will refund the equity you’ve saved up (minus a relisting fee) and sell the property on your behalf. However, you may be liable for other fees and outstanding payments owed to Divvy.

Renting a home

Divvy Homes is a startup that aims to make homeownership more accessible by offering renters the opportunity to buy their dream home while building equity. Its business model has gotten the attention of investors, and it recently raised $110 million in Series C funding led by Tiger Global Management.

In this rental-to-purchase program, Divvy purchases homes on behalf of customers, collecting an initial 1-2% down payment and then leasing them back for three years. The company then charges monthly rent, and a portion of that money can be earmarked towards building up savings.

This allows renters to save enough equity to buy a home in just three years. The company has a high success rate, and more than half of its clients are able to purchase a home during their lease.

Divvy’s business model makes homeownership more affordable for Americans who have trouble getting a mortgage. The company also offers more flexibility than traditional mortgages, which require a 30-year commitment.

Building equity

Divvy homes is a new way to save for a down payment and build equity in your home. It offers a three-year lease program, which lets people rent a house while they work towards homeownership.

During this time, a portion of each monthly payment goes into a savings account that builds up to 10% equity credit in the home. After the three-year lease, customers have the option to purchase the home with that credit as a down payment.

The company has raised fresh funding in a round that includes existing investors, including Tiger Global Management and Caffeinated Capital. It also received participation from Andreessen Horowitz, Singapore’s GIC, JAWS Ventures, Lennar and Moore Specialty Credit.

Divvy helps buyers through the entire buying process. They help them find a house, handle all the paperwork and negotiate with sellers. They even do title & escrow, inspections and repair work for homeowners.

Financing a home

Divvy Homes is a rent-to-own company that makes homeownership more accessible for those who struggle to qualify for conventional mortgages. It aims to help homeowners who can’t afford the down payment or have poor credit histories become mortgage-ready through a series of steps including home rental and credit counseling.

Unlike traditional rent-to-own companies that market rundown homes sold at auctions, Divvy homes focuses on homes in good condition and pays for inspections to ensure the home won’t have large repair costs. Inspectors check for problems with roofs, foundations, electrical systems, plumbing, and other issues that could end up requiring costly repairs down the road.

During the rental period, a portion of each monthly rent payment goes toward a home savings fund that can be converted to a down payment when the three-year lease ends. This can help you build equity for a down payment without entering a long, expensive contract.