Hunting Down Divvy Homes in My Vicinity

Finding a home can be an overwhelming process, especially for first-time homebuyers or those with limited budgets. One innovative option to make homeownership more accessible is Divvy Homes. Divvy Homes allows aspiring homeowners to get into a home with just a 2% down payment through a rent-to-own model. For those wondering "where are Divvy homes in my area?" , here is a guide to understanding and locating Divvy properties near you.

Divvy Homes purchases homes on behalf of clients in order to help them build equity and work towards full ownership. During the three year lease term, Divvy covers maintenance and repairs while renters save up for a traditional mortgage down payment. By the end of the lease, renters can buy the home from Divvy at market price.

Learning About Divvy Homes

Many hopeful homeowners may be wondering - what exactly are Divvy homes? Here are the key things to understand about this unique home financing model:

• Divvy purchases the home and holds the title during the three year lease term. The client only pays a 2% initial option fee.
• The client pays monthly rent set at 1% below market price. A portion goes towards a downpayment savings account.
• The lease term is three years. At the end, the client can purchase the home at market price with their downpayment savings.
• Divvy covers maintenance, repairs and property taxes during the three year term.
• Clients build equity immediately since Divvy puts 2% of the home's value into a downpayment account.

Divvy Homes offers a path to homeownership for those who may not qualify for a traditional mortgage yet. It allows clients to move into a home quickly with a low upfront payment. Divvy also helps clients improve their financial profile to become eligible for a future mortgage.

How Divvy Homes Operates

Divvy Homes is a San Francisco startup launched in 2017. They have received significant funding from venture capital firms like Andreessen Horowitz and Tiger Global. Here is an overview of how they operate:

• Divvy identifies homes to purchase based on client needs and local real estate market data.
• They buy homes outright in cash then lease to clients under rent-to-own terms.
• During the lease, Divvy is responsible for maintenance, repairs and taxes.
• Clients pay an option fee upfront then monthly rent at below market prices.
• A portion of the rent goes into a downpayment savings account.
• After three years, clients can buy the home from Divvy at market price.

This disruptive model provides an opportunity for clients to become homeowners much faster than saving up for a 20% downpayment on their own. Divvy manages all the homeownership responsibilities while clients build equity and credit.

Checking Divvy Homes Listings

Those interested in Divvy homes will want to browse listings on the company's website. All available Divvy properties are listed there along with details like photos, home features and monthly rent price. Divvy currently operates in approximately 20 metro areas across the U.S. Properties are located in cities like Phoenix, Atlanta, Charlotte, Dallas, Orlando, Nashville, Jacksonville and Raleigh. Divvy plans to expand to more markets soon. In addition to the Divvy website, you may also spot Divvy homes on local real estate sites like Zillow, Trulia and Realtor.com. Divvy properties are sometimes listed there as rental homes. Contact the Divvy team directly regarding availability.

Determining Your Divvy Home Needs

Before browsing Divvy listings, take some time to determine your preferences. Figuring out your needs and budget will make the search process much smoother.

Important Factors to Consider

Here are some key things to think about as you evaluate Divvy homes:

• Location: Make sure Divvy operates in your desired city or metro area. Check their site for an updated list of markets.
• Space needs: Consider how many bedrooms and bathrooms you need to comfortably accommodate your family.
• Commute: Look for Divvy listings within an easy commute to your workplace and kids' schools.
• Amenities: Decide which features are essential like garage, yard, laundry room.
• Budget: Divvy rent prices are typically on par with rental market rates in that area.

Taking the time to determine your must-have home features and ideal neighborhoods will make finding the perfect Divvy property much easier.

Qualifying for Divvy Homes

Divvy has certain financial criteria clients must meet to qualify:

• Minimum credit score of 580
• Stable income - minimum annual income of $45,000
• At least 2 years of employment history
• Debt-to-income ratio below 50%

These requirements help ensure clients will be able to make the monthly Divvy rent payments. Divvy also assists clients in improving their financial profile to become eligible for a future mortgage.

Searching for Divvy Listings

Once you are ready to start your search, here are some tips for finding Divvy homes in your desired area:

Using Divvy's Website

The easiest way to browse Divvy properties is through their website. You can filter listings by location, price, bedrooms, bathrooms, square footage and more. Narrow your criteria based on your needs and preferences. On each listing you can view photos and amenities. You can save favorites and contact Divvy to schedule tours. Checking the site regularly is key as new properties are added frequently.

Local MLS and Listing Sites

In addition to Divvy's site, you may find their homes on local MLS and real estate listing platforms like Zillow, Redfin, Realtor.com and Trulia. Divvy commonly lists properties there as rentals. Filter by criteria like "lease purchase" or "rent-to-own" as well. But note that availability must be confirmed with Divvy as listings on external sites may be out of date. Contact Divvy support if you spot a promising rental property on another site that may be a Divvy home.

Driving Around Neighborhoods

Take note of any "Divvy Homes" signs you see posted outside houses in your preferred neighborhoods. Divvy places signs on their properties to attract interested buyers. Jot down any addresses you see so you can look them up on Divvy's website. Going for a neighborhood drive can help you identify properties that meet your needs.

Evaluating Divvy Home Listings

Once you have compiled a list of promising Divvy homes in your area, the next step is carefully evaluating each option. Here are some tips for assessing individual listings:

Study Listing Details and Photos

Read through the entire listing for each property that interests you. Make sure to view all photos of the exterior, kitchen, bedrooms, bathrooms and yard. Also confirm the listing has all the features and amenities you require. Cross any homes off your list that don't meet your needs.

Compare Monthly Rental Prices

Look at the monthly rent amount for each Divvy home and make sure it fits your budget. Remember that Divvy sets rental rates slightly below market price for that area. Use sites like Zillow and Trulia to compare Divvy rent against average rental prices for that neighborhood.

Schedule In-Person Tours

Don't decide on a Divvy home until you have toured it in person. Walk through the home to get a feel for the layout, space and condition. Make sure it matches the photos and listing details. Take notes after each tour on pros/cons as it's easy to forget details.

Consult with a Divvy Homes representative to ask questions and coordinate tour times. They can provide insight to help you compare your options.

Submitting Your Divvy Homes Application

Found the perfect Divvy home for you? The next step is submitting an application with Divvy to get qualified to lease it. Here is what to expect in the application process:

Gather Required Documents

You will need to provide the following to Divvy as part of your application:

• Photo ID
• 2 recent pay stubs
• Bank statements from last 2 months
• W-2s from last 2 years
• Federal tax returns from last 2 years

Having these documents ready will help speed up the processing of your application.

Accept Terms and Conditions

You will need to carefully review and accept Divvy's standard lease agreement. Make sure you understand all terms and conditions before signing anything. Consult a real estate attorney if you have any concerns.

Wait for a Decision

It takes Divvy about 5 business days to process applications and conduct background checks. If approved, you will receive a finalized lease agreement to e-sign. Divvy will also schedule a home walk-through and transfer of keys!

Selecting Your New Divvy Home

If you get approved for multiple Divvy homes, how do you decide on the right one? Here are some tips for making your final selection:

Make a List of Pros and Cons

Go through your notes from touring each property. List the positives and negatives of each home. Compare factors like layout, condition, yard space and commute time.

Consult with a Real Estate Agent

A local real estate agent can provide guidance on comparing factors like price, neighborhood value appreciation, school districts, and resale potential. Their insights can help you make the optimal choice.

Submit Your Preferred Home Offer

Notify your Divvy Homes representative which property you would like to move forward with. Be prepared to cover the 2% option fee and first month's rent.

Completing the Home Purchase Process

After selecting your Divvy home, there are a few final steps before you can move in. Here is what to expect as you complete the purchase process:

Finalized Terms

Work with Divvy to finalize all dates, fees and lease terms. Read through the lease thoroughly and resolve any outstanding questions.

Home Inspection

Hire an independent home inspector to evaluate the property's condition prior to move-in. Verify no significant defects or damage.

Financing and Downpayment

Submit your 2% option fee along with first month's rent to Divvy. Sign any final bank or financing paperwork.

Once these last details are handled, you can get the keys and become a proud Divvy homeowner!

Moving into Your New Home

Once the ink dries on your Divvy lease, it will be time to move into your new home! Here are some tips for a smooth transition:

Schedule Utilities and Movers

Set up activation of all utilities like power, water, internet and cable for your move-in date. Hire movers and make sure to get renters insurance.

Clean and Make Minor Repairs

Do a thorough deep clean before moving in your belongings. Paint walls, fix minor defects and make it feel fresh.

Congrats, you are now a homeowner thanks to Divvy! Break out the bubbly and enjoy your new pad.

We hope this guide gives you a helpful overview of how to find and get qualified for a Divvy home in your desired area. Divvy provides a unique path to homeownership for those not able to buy a home through traditional means right away. Their lease-to-own model helps build equity and credit until you are ready for a mortgage.

Owning a home is an exciting milestone. With Divvy, your homeownership dreams can start becoming reality much sooner than you may think. Time to start hunting for Divvy homes near you!