Divvy is an innovative new option that helps renters transition to homeownership. Unlike a normal lease, with Divvy:
Here’s how our process works:
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!
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!
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.
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.
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:
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.
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.
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.
If you’re within about an hour’s drive of Atlanta or Cleveland’s city centers, it’s likely that we do! Email email@example.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!
These are the main requirements of Divvy’s approval process:
To see if you qualify, fill out our quick pre-qualification form. If you have questions about your application result, please email firstname.lastname@example.org.
Divvy’s underwriting process is very fast. It has 5 simple steps:
Divvy will respond within 3 business days at most, and usually within 24 hours.
Divvy pre-qualifies you for a home budget based on 2 criteria:
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.
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!
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!
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:
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.
No, we do not permit our tenants to run or hold businesses out of their Divvy Homes.
Email our team at email@example.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.
We’ll negotiate the best and lowest price we can, and pass the savings on to you!
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!
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.
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.
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.
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.
Your monthly payment will have 3 components:
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.
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).
No, Divvy pays for all taxes, homeowners’ insurance, etc. You’ll start paying these costs when you buy the home back!
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.
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.
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!
Absolutely not! You have the right to buy the home at any time without any penalties or special fees.
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.
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.
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.
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.