One must be invited by their realtor to apply, they must meet the qualification for rental (credit scores, no recent evictions etc.) After meeting all qualifications, they're invited to shop for a home with "their" agent. The process for the applicant (your client) is pretty basic. When the lease term expires, buyers should have enough set aside to cover the down payment needed to qualify for a traditional mortgage.Yes, it is similar to other Lease -To- Own programs such as Home Partners of America & TRIO. This allows a renter to essentially test out whether or not they actually want to take on all the responsibilities of owning a home. The rental term is designed to help make buyers “mortgage-eligible.” To do that, rent payments include an extra “home savings” fee that helps buyers set aside money to cover a future down payment while still paying rent on the home.ĭuring the lease term Divvy acts as a landlord, covering maintenance and repairs. The remaining purchase price, closing costs, taxes, and insurance are all covered by Divvy.Īfter Divvy closes on the home, a buyer enters into a 3-year rental agreement with them. This allows a buyer to get into their home for less than $6,000 in upfront costs. In exchange, the buyer compensates Divvy with a 2% payment of the home’s selling price. Once the home is selected, Divvy pays for the house in cash on half of the buyer. Related> Rent to Own – A Home Buying Option With No Down Payment Required How Does it Work?Ī buyer can select a home from one of the markets Divvy operates in. That means that individuals who may not have enough for a down payment, or are self-employed, or have a low credit score - or simply aren’t sure if they’re ready to own a home in the first place - will still have an opportunity to buy a home through Divvy. But unlike landlords, Divvy defers to the renter to coordinate and make decisions on repairs, giving prospective buyers the opportunity to test out home ownership and learn about what it takes to own a home.ĭivvy offers a path to homeownership by allowing buyers to build equity in a home while still renting it. After the rental term is up, buyers can buy their home.ĭuring the three-year lease period, Divvy covers maintenance and repair costs - just like a landlord would. The buyer then makes rent payments while also setting aside money for a future down payment through Divvy. The company purchases a home on a buyer’s behalf. Monthly payments will likely be higher than with traditional rentingĭivvy Homes is a new way to help homebuyers purchase a home through a rent-to-own model.Missing a payment can significantly impact a buyer’s credit score.Divvy is only available in certain housing markets.Homebuyers enter a 3-year lease with Divvy that can’t be broken.
#DIVVY HOMES REVIEWS HOW TO#
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