Unlike a traditional mortgage, Divvy lets you live in your new home as a resident while you save up to buy. With Divvy, you get the benefits of homeownership, with the flexibility of renting.
The best part? Divvy lets you build up savings by allocating a portion of your monthly payment towards your future down payment.
Let’s take a look at some of the key differences between Divvy and a traditional mortgage.
- A mortgage typically requires a down payment of at least 5%. With Divvy, you can select almost any home available on the open market with just 1% or 2% down (an initial contribution that you’ll use towards your future down payment when you’re ready to buy). *
- Divvy offers an annual rent-to-own option, while most mortgages require a 30-year commitment. That means you can try out your home before making the decision to buy.
- Unlike a financed home purchase, Divvy buys all of its homes with cash, meaning we will have a leg-up in negotiations when shopping for your future new home.
- In most cases, qualifying for a mortgage requires excellent credit and minimal previous financial blemishes, making mortgage approval and access to affordable rates challenging for first-time buyers. Divvy makes it easy to qualify for our program, even if you’ve had some financial difficulties in the past.
Find out the home shopping budget you may be eligible for here.
*Subject to lender rules and regulations, where applicable. Lenders have different rules regarding how much of your Divvy Savings can be applied to your down payment and how much can be applied to cover your closing costs. Please discuss these requirements with your lender to ensure you have adequate funds to close.
** Previously, Divvy offered 3-year terms. Lease renewal options are available at Divvy’s discretion. Rent-to-own options in Texas are limited to 3 years.
*** Subject to our eligibility criteria and the markets where Divvy operates.