We want to set our residents up for success by purchasing high-quality, safe homes. The criteria below should be used to identify homes that qualify for our program. Please note the criteria is not comprehensive and is subject to change.
Want to know whether you'd be a good fit for the Divvy program? Check out our qualifications and requirements.
A Note About Eligibility
Any home a customer wants to put an offer on must fit within the Divvy pricing model. Essentially, the home must be a good investment for both the customer, and Divvy, as our primary interest is to ensure the ongoing and long-term success of our customers.
Bidding Guidance
Due to the rapidly changing market conditions, Divvy is generally bidding 10-20% below list price to ensure the customer can buy back the home when they are ready. We realize this shift presents a more narrow window of opportunity for acquisition and we wanted to clarify guidance around best practices for our clients and partner agents.
Homes Listed Under $350k*
We are having the most success winning homes that are priced at $350k and below.
*Not a hard limit. Homes over $350k will work. Our offers are just more likely to be accepted when the home is priced under $350k.
Longer Days on Market
Due to the nature of our bidding strategy, it is likely more prudent to extend offers on homes that have been sitting on market for longer periods of time (+30 days). Those sellers are more likely to accept more conservative offers.
What properties Divvy will buy
Standard requirements:
- Homes priced within our approved price bands
- Single-family detached homes or fee-simple townhomes (i.e. includes land ownership)
- Divvy does not purchase condominiums or townhomes under condominium ownership; please check townhome eligibility here
- Homes with at least two above-grade bedrooms on less than 2 acres
- Homes located in one of our approved areas
New construction requirements:
- Buyers Agent to confirm status directly from the builder via intake form
- Earnest Money Deposit (EMD) cannot exceed $15,000. Note: resident is required to pay the entire EMD amount as a non-refundable deposit before an offer is sent
- Development cannot have rental restrictions
- Construction must be completed within 90 days from contract bound date
- There must be at least 2 finished homes sold, within the same phase of the development, both within the last 6 months
- Comparables must be ± 10% GLA (gross living area = total area of finished, above-grade residential space excluding unheated areas such as porches and balconies) of home, with comparable upgrades, within the same development
- All new construction homes must have central air conditioning
What properties Divvy will not buy
Sale Type restrictions:
- Pre-foreclosures / short sales
- Foreclosures
- REO/bank-owned
- Government agency owned
- Manufactured, modular, or mobile homes
- Commercial or mixed-use properties
- Condominiums or townhomes under condominium ownership
- Duplexes
- Please check townhouse eligibility here
Home restrictions:
- One-bedroom homes; homes must have at least two above-grade bedrooms
- Homes without central air conditioning (exceptions may apply in CO, MN, and OH)
- Homes must be free and clear of the seller’s personal belongings at close of escrow. If seller is in an approved leaseback, seller may take appliances at the end of the leaseback
- Homes with an unpaved driveway and/or unpaved access road. Exceptions can be made if the home has the following: street parking
- Homes with a door on a raised level must have a balcony, deck, staircase, or railing built on the exterior
- Homes with financed solar panels. Exceptions can be made if the home has the following: owned solar systems and/or systems paid off at close of escrow by the seller.
- Homes with oil tanks or that use propane as the primary heating source
- Homes on lots that are 2 acres or more
- Homes with an existing lease in place where the lease end date is beyond the acquisition close date
- Boarded Windows (applies to subject or neighboring properties). Defined as fixed pieces of wood or other sturdy material covering a window surface area that eliminates visibility or access to the interior of the home. This applies to the subject or neighboring properties
- Homes that back up to or are directly off of a major highway
- Homes that back up to or are directly next to a commercial entity
Quality and condition restrictions:
- Homes with organic growth (e.g. mold)
- Homes with known hazardous materials (e.g. vermiculite insulation, asbestos, etc.)
- Homes with unfinished rehabilitation work, liens, and/or open permits
- Homes with known structural issues
We want your home to be in great condition before you move in. When home shopping, there are a few warning signs that a home might not pass the Divvy Home Quality Evaluation.
Red flags in the listing include:
- “Sold As-Is”
- “Fixer-Upper”
- “Not Habitable”
- Home has less than 10 photos
- Homes with excessive deferred maintenance
- HVAC is beyond useful life (typically up to 15 years)
- Homes with deteriorating roofs or nearing the end of its useful life (typically around year 15)
- Water heater is beyond useful life (typically up to 8 years)
When walking through the home, red flags include:
- Any indication of moisture intrusion or mold growth, such as visible moisture staining or smell
- Home does not appear to have been regularly maintained or is generally run down
- Multiple additions or obvious poor quality workmanship
- When you walk in the home, do floors feel out of level, or are there large noticeable cracks that you could fit a quarter in? This could indicate structural concerns
Pools (above and below ground), spas (above and below ground), ponds deeper than 18 inches, restrictions:
- Homes with above ground pools. Exceptions can be made if the seller removes the unit prior to close of escrow
- Homes with a hot tub or spa. Exceptions can be made if the seller removes the unit prior to close of escrow
- Homes with indoor pools
Pool safety (below-ground) requirements:
- Pools are fully enclosed by a fence and structure. This is the perimeter fence for the property that connects to the home securing the backyard, and must be a minimum of 60" high. In the event a home does not meet this criteria, a pool fence meeting the same requirements surrounding only the pool will suffice
- Self closing, self latching gates (all). These are the gates in the aforementioned perimeter fence or wall that allow egress off the property, or out of the back yard. Also must be 60" high
- All house doors and windows to the exterior yard area where pool is present, and fence gates must additionally be equipped with ajar alarms
Environmental restrictions:
- Homes with repaired sinkholes on or near the property, regardless of if the sinkhole has been repaired
Divvy does not purchase in 100 year flood zones. Specifically, Divvy does not purchase in areas that FEMA designates as high risk. Specifically homes in FEMA flood zones: A, AE, AH, AO, VE, and X zones that include a subcategory of: Regulatory Floodway, Special Floodway, or 100 year flood event are ineligible.
HOA restrictions:
- Homes subject to age-related residency restrictions (e.g. communities restricted to those 55/65 years old and older only)
- HOAs where approval of the lease is required after closing
- HOAs deemed to be a third-party beneficiary of the lease
- HOAs with the right to evict on the property owner’s behalf
- HOAs that require background checks, credit checks, and/or interviews
- HOAs with a maximum rental period
- HOAs with a minimum period of owner occupancy
Fee restrictions:
- Properties wheres tax rates plus community development fees (CDD) exceed 4% of the property’s value
Legal restrictions:
- Properties where a homicide occurred at the property in the last 7 years
- Properties where methamphetamine production occurred on the property in the last 7 years
*Census Bureau-defined Metropolitan Statistical area center
Tips for home shopping
We always recommend working with your own realtor or Divvy agent while you're shopping for homes, as they should have a strong understanding of our home eligibility requirements and can filter out any unsuitable listings before you view them. Our home search tool is also a great resource to use once you're home shopping.
Ready to get on the path to homeownership? Get started with Divvy today!