To qualify for Divvy, we require all applicants to go through our underwriting process. We do this to make sure our customers will have the best experience with our program and are well-positioned to successfully purchase their homes!
When approving applicants for Divvy, our main focus is ensuring our customers can afford their monthly payments. We never want to put someone in a home they can’t afford, or in a situation that could hurt them financially. Here are a few reasons why you might have been declined and some advice on next steps:
- Your FICO score didn’t meet our requirements: We look for a minimum FICO score of 550*. Your score with other bureaus may look different, so keep that in mind. Most credit scores “update” every 30 days, so keep an eye on your situation. You can find some tips on improving your credit score here. Divvy’s application expires after 30 days. We invite you to reapply by emailing our team at support@divvyhomes.com to reset your account after your application has expired.
- Your monthly household income didn’t meet our requirements: We need to review your last 3 months, or more, of income. You may have just received a raise or gotten a new job, but unfortunately, we can’t look at future income when we underwrite you. Once you meet our minimum income requirements, feel free to re-apply!
- We couldn’t approve you for the required minimum budget in your metro area: There is a required minimum monthly budget in each of our metro areas. If your current financial situation doesn’t allow us to approve you for the minimum budget, we can’t move you forward. If you’re able to include additional income in your application, or if your debt-to-income ratio improves, you might qualify!
- Your background check didn’t meet our requirements: To be fully approved you must pass a background check. If you disagree with our decision, or are able to provide more context, we offer an appeals process and review on a case-by-case basis. To submit an appeal, reply to our team, including any documents or information detailing specifics of each conviction, the incident(s) leading to such conviction(s), including when and where the incident(s) occurred, and the nature and severity, and your rehabilitation and reintegration to society since such conviction(s). We will also accept other documents that you think would help inform our decision, including landlord and employer references.
- Your debt-to-income (DTI) ratio didn’t meet our requirements: We look at your debt-to-income ratio, which measures how much of your monthly income goes toward your monthly debt payments. You can calculate this by dividing your monthly debt payments (such as car, student loan, personal loan, rent, and minimum credit card payments) by your monthly income (before taxes).
- Note: Depending on your credit score, we may also look at your rent-to-income (RTI) ratio, which measures how much of your monthly income goes toward your monthly rent payments.
- You may have entered your Social Security Number incorrectly in the initial soft credit check process.
If you’re declined, you can re-apply every 30 days, if eligible. If your financial situation changes, we absolutely encourage you to re-apply!
*Be aware that not all FICO scores are calculated the same way—we use Experian as our credit bureau. Your score through your credit card company or third-party service could appear differently. Our credit requirements are also subject to change at any time.