Think of equity credits like your home savings account. You start out with at least 2% equity credits, and build toward 5% or 10% equity credits over your three-year lease.
You can convert equity credits into a down payment at any time.
If you’ve built 4% of saving contributions, that means you would have a 4% down payment, including the amount the property and your savings have appreciated over that time (typically between 2%-7%)*
In addition to the 2%, 5% and 10% home savings builds Divvy Homes has offered in the past, eligible applicants may now opt into a new build called 2/2 FLEX.
With 2|2 FLEX, Divvy will ask for a 2% initial payment and will not require any monthly savings. You can choose how much or how little you’d like to save towards a mortgage down payment each month.
If you choose not to buy the home and your three-year lease ends, Divvy will sell the home, and refund your accumulated savings contributions equity credits minus 2% of the purchase price of the home and any outstanding fees and payments owed to Divvy (to help cover selling costs and back rent). Occasionally, Divvy may choose to assess a Shared Loss Deduction to the tenant to help allocate some of the downside of home price depreciation.
Disclaimer: This information is accurate as of January 27, 2019. For specific terms and conditions that apply to you, please reference your occupant proposal and signed lease.
*Once saved, the contributions cannot be withdrawn from your Divvy account until (i) you purchase the property; or (ii) your lease ends. If you do not purchase the home, your savings contributions will be refunded but you WILL NOT receive any interest or appreciation. Your savings contributions are not held in a savings account and are not FDIC insured.