Divvy FAQs

About Divvy

Divvy is an innovative new option that combines the best of renting and owni…

Your Approval Process

Divvy’s underwriting process is fast and simple. It has 3 steps. After you compl…

Choosing Your Home

Almost all homes on the market in your area! Divvy approves homes based…

Your Divvy Down Payment

Divvy has a minimum required down payment of 2%…

Your Divvy Monthly Payments

Your monthly payment will have 3 components…

Buying Your Divvy Home

After your lease ends, you’ll have the option to purchase your home…

About Divvy

How does Divvy work?

Divvy is an innovative new option that helps renters transition to homeownership. Unlike a normal lease, with Divvy:

  • You get to choose from any home for sale on the market
  • You have the exclusive right to buy the home at any time
  • Divvy helps you build up a down payment!

Here’s how our process works:

  1. Get fully approved by following the steps here.
  2. Shop with the help of our partner agents. Choose a home currently for sale in your area!
  3. Make a 2% or greater Divvy down payment.
  4. Lease for up to 3 years, building equity credits every month as you do.
  5. Buy the home back! Divvy provides up to a 10% down payment with no additional costs or money down from you.

Don’t worry if this seems daunting: we’re here every step of the way. We can get you into your home in just a few weeks!

What areas does Divvy operate in?

For now, Divvy operates in the Atlanta, Memphis and Cleveland metro areas (including Akron). If you’re within an hour’s drive of the city, your area probably qualifies!

How much does it cost to participate in this program?

Divvy customers make 2 kinds of payments. You’ll make a one-time Divvy Down Payment when your lease begins. You’ll also make monthly payments for the duration of your lease. If you decide to buy the home during your lease, you’ll need to obtain financing and pay Divvy a pre-determined home buyback price.

How does Divvy compare to a mortgage?

Divvy is not a mortgage. Divvy is a shorter-term program that offers you more flexibility, and can be a great stepping stone to a mortgage.

How does Divvy compare to renting?

Divvy is a lease, but unlike a normal lease, Divvy is designed to brings its customers closer to homeownership. If you are ready to stay in one spot for up to 3 years, and you can take good care of your property, Divvy offers several advantages:

  • Exclusive right to buy the home
  • More freedom to customize, rehab and alter the home
  • Lease for 3 years and get a 10% down payment from Divvy

How long is this program?

Divvy is a 3 year lease program, unless you choose to buy the home earlier, in which case the program ends. Otherwise, your lease obligation is 3 years long.

Who actually owns the home?

During your 3 year lease, Divvy owns the home. You’ll have an exclusive, documented right to purchase the home at any time during the 3 years, at a pre-specified price.

How do we actually buy the home?

Divvy will buy the home and handle the closing process. We negotiate the best possible price and pass the savings on to you! We cover closing costs, such as appraisals and inspections. Divvy’s interests are aligned with yours, and we never buy homes with serious maintenance issues or overvalued prices.

I’m not sure if Divvy operates in my area.

If you’re within about an hour’s drive of Atlanta or Cleveland’s city centers, it’s likely that we do! Email info@divvyhomes.com if you can’t find your preferred areas on our site. If you’re in a different city, Divvy is expanding fast and we hope to serve you soon!

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Your approval process

What are the requirements to participate in this program?

These are the main requirements of Divvy’s approval process:

  • Applicants must be currently employed
  • Applicants must have been employed for the past 12 months (multiple jobs are fine)
  • Average monthly income of at least $2,300/month
  • Applicant can comfortably afford their Divvy monthly payment
  • Credit score of at least 550
  • If applicants have declared bankruptcy, their bankruptcy has been discharged over 12 months ago
  • Have at least $1,300 saved up and ready to go for a down payment

To see if you qualify, fill out our quick pre-qualification form. If you have questions about your application result, please email info@divvyhomes.com.

How do I apply?

Divvy’s underwriting process is very fast. It has 5 simple steps:

  1. Fill out our pre-qualification form. This allows us to estimate your budget.
  2. Upload a photo or scan of your photo identification.
  3. Upload 2017 Tax return, W2, or 1099 for Proof of Income.
  4. Use Divvy’s bank connect tool to send us your most recent bank statements for Proof of Funds.
  5. Authorize a credit check.

Divvy will respond within 3 business days at most, and usually within 24 hours.

How do you decide my home budget?

Divvy pre-qualifies you for a home budget based on 2 criteria:

  • Can you afford a minimum 2% down payment?
  • Can you comfortably afford the monthly payments?

If you’d like a larger home budget, you can let Divvy know you are able to make a larger down payment, or that you have additional documented income. Your home budget, and Divvy’s payments, will not vary by credit score or other factors. Divvy shows everyone the same prices.

How long does this all take?

Our approval process is extremely fast. Once you’re done submitting our required documents, we can pre-approve you the very next day!

Closing on a home, once you’ve made a choice, takes between 1-5 weeks, again often depending on your preferences, as well as those of the seller.

Overall, we recommend you apply with Divvy 2-3 months before you plan to move. This gives you time to address any issues that come up during the approval process, just in case. But if you’re moving soon, don’t worry – Divvy can move as fast as you can!

How long are approvals valid for?

Divvy approval letters are valid for 3 months, though we reserve the right to ask you to re-submit select documentation. So if you’re not sure when you’d like to move, go ahead and apply today!

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Choosing your home

What homes are available to lease with Divvy?

Almost all homes on the market! Divvy allows you to choose from homes currently for sale in your area. You aren’t choosing from a small group of homes Divvy already owns.

Divvy is NOT able to purchase and lease the following:

  • Condos
  • Foreclosures
  • Non-bank-approved short sales
  • Auction properties
  • Homes with serious maintenance issues
  • Manufactured or mobile homes
  • Undeveloped lots and pre- or mid-construction homes

Can I use a broker?

All Divvy customers receive the help of our experienced partner agents during their home shopping process. Once you’re pre-qualified, we’ll match you with the right agent for your needs.

Can I run a business out of my Divvy Home?

No, we do not permit our tenants to run or hold businesses out of their Divvy Homes.

What if I want to buy a home that I can’t find on your website?

Email our team at info@divvyhomes.com and we’ll review the home and see if it’s eligible. Please note that most homes not displayed on our site are not eligible.

How does Divvy decide what price to offer?

We’ll negotiate the best and lowest price we can, and pass the savings on to you!

Can Divvy help me improve my credit?

Divvy is happy to report your monthly payments to credit bureaus, to help establish a pattern of timely payments. This may have a positive effect on your credit!

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Your Divvy Down Payment

How much do I have to put down with Divvy?

Divvy has a minimum required down payment of 2%. So for instance, if you’d like to lease a $100,000 home, you must put at least $2,000 down. Our overall minimum down payment is $1,300, which corresponds to our most affordable home options.

What happens to my down payment?

Your Divvy down payment becomes equity credits in your home. It is not a fee in any way. If you have a 2% Divvy Down Payment you will have 2% equity credits.

When is the down payment due?

In order to be fully Divvy approved, we need to see proof of funds. You should plan to have your full down payment ready and saved up when you begin the Divvy process.

What do I need to pay to make an offer?

Divvy has no application or offer fees!

In order for Divvy to make an offer, you’ll send Divvy 10% of your down payment, to be held in escrow. So for a $2,000 down payment, you’ll send Divvy $200. The remaining $1,800 would be due when the closing process concludes and your lease starts. If the home does not close or our offer is rejected, $200 would be refunded.

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Your Divvy Monthly Payments

How does Divvy determine my monthly payments?

Your monthly payment will have 3 components:

  • Rent (about 70% of your monthly payment)
  • Equity credits (about 25% of your monthly payment)
  • Maintenance funds (about 5% of your monthly payment)

The rent component works just like a normal lease. Divvy sets rent prices according to each neighborhood’s typical rent costs, depending on home location, size, etc.

Equity credits are your future home savings. They convert into a down payment if you buy the home, or a cash out option if you don’t.

The maintenance fund is the smallest component of the monthly payment and is reserved for repairs to critical home systems, such as heating and cooling, roofs, plumbing, etc. to ensure your home remains in tip-top condition. For maintenance assistance, you can submit a request through your customer portal.

What are equity credits and how do they work?

You can think of equity credits like your home savings account.

Every Divvy customer starts out with at least 2% equity credits, and builds to 10% equity credits over their 3 year lease.

You can convert equity credits into a down payment at any time. If you’ve built 4% equity credits, that means you have a 4% down payment.

If you choose not to buy the home and your 3 year lease ends, Divvy will sell the home. We’ll cash out your equity credits and share 8.5% of the home’s final sale value (we need to deduct 1.5% to cover selling costs).

Do I pay for taxes, insurance, etc.?

No, Divvy pays for all taxes, homeowners’ insurance, etc. You’ll start paying these costs when you buy the home back!

What if I need to leave during the 3 year lease?

You can end your Divvy lease by buying the home at any point. If you do not buy the home, you are obligated to lease your home for the full 3 years. If you stop making payments, Divvy will consider your lease broken, and can only refund 50% of the total dollars of equity credits.

Who is responsible for home maintenance?

As the home’s future owner, you’ll be responsible for taking good care of this house. You won’t have a typical landlord. Divvy only approves homes that are in good condition without any serious maintenance issues, so you won’t be expected to undertake any major projects.

Am I allowed to fix-up or alter the home?

You’re free to undertake minor home improvement projects at your own expense (i.e. repainting, new carpets, changing the landscaping, etc.). For routine maintenance issues you can also use your Divvy maintenance funds that are saved up every month!

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Buying Your Divvy Home

Do I have to wait until the end of the 3 years to buy my Divvy home?

Absolutely not! You have the right to buy the home at any time without any penalties or special fees.

How much does it cost to buy my Divvy home?

Each home has a pre-determined buyback price. Divvy sets this price based on our projection of that home’s market value in 3 years. You can see this buyback price for every home on its listing page, and it won’t change at any point during the 3 years.

Can Divvy help me get a mortgage?

Divvy is always working to build partnerships that can help our customers find better home financing options. At this time however, Divvy is unable to provide mortgages or facilitate your mortgage application process. It’s your responsibility to obtain a loan in order to buy your Divvy Home.

Can I use a VA, FHA, USDA, or other kind of mortgage?

Absolutely, all these are fine! If your city, county or state offers assistance programs, Divvy is also happy to work with these, although eligibility will vary and Divvy can’t guarantee you’ll be eligible.

What fees or closing costs should I expect when I buy my Divvy home?

That’s the great thing about buying homes the Divvy way – no closing costs for you! You’ll only be responsible for costs associated with your own mortgage. Divvy prides itself on simple, transparent services.

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