#DIVVY CREDIT FREE#

If you’re applying with someone else (a co-applicant), they’ll also be subjected to a soft credit check.

When you apply with Divvy Homes, the first thing they’ll do is run a “soft” credit check that doesn’t hurt your credit score.

Their screening process is not as strict as a traditional lender, but they do ensure that applicants meet the following requirements to be considered.Ĭredit Check. What kinds of applicants does Divvy work with? Divvy is careful to work with reliable applicants who are likely to make payments on time and eventually qualify for a mortgage. As long as all other requirements are met, the renter can now qualify for a mortgage and can take over ownership of the home. Divvy holds onto the savings payments they receive from the renter.Īt the end of the process, they give it back to the renter to serve as their down payment. The renter can then move into the home and begin making two monthly payments: Rent and an equity, or “savings” payment. Everything else is covered by Divvy Homes. Once the renter has found a home they want to buy, Divvy asks them to pay at least a 2% down payment.

#DIVVY CREDIT FREE#

The renter is free to choose the home they want within their area.ĭivvy real estate agents and customer support staff guide the renter through this process, helping with everything from the home search to final negotiations with sellers. Right now, Divvy covers Atlanta, Cleveland, Dallas, Memphis, Phoenix, San Antonio, St. Once they’re accepted, they start looking for a home they’re interested in buying in one of the cities Divvy Homes operates in. How It Worksįirst, a renter applies to Divvy supplying financial and personal information. This enables them to get a mortgage and own the home they’ve been “renting.” There’s a little more to it, so let’s take a look at how the process works, its pros and cons, and whether it’s right for you. Within about three years, the renters ideally will have bolstered their credit scores, earned equity in the home, and become eligible for financing. They allow renters to choose a home they’d like to one day own, make a small down payment, move in, and make monthly payments.Īll of this is done so that the buyer can earn equity in the home over a few years. Their vision: “Instead of paying rent every month, getting no closer to homeownership, we’ll offer tenants the opportunity to build their credit scores, earn equity, and eventually get approved for a mortgage by using a modified rent-to-own arrangement.”ĭivvy Homes partners with people who want to become homeowners but are unable to get financing. In a nutshell, they act as a non-traditional lender, financing an otherwise unqualified buyer. Instead, they become long-term renters, which currently account for more than 36% of all households.ĭivvy Homes is on a mission to change the way this works through fractional ownership. That would prevent them from getting approved for a mortgage. Experian, one of the three consumer credit bureaus, found that 16% of Americans (that’s nearly 53 million) have credit scores below 580. The opportunity to own a home is financially out of reach for millions of Americans.

The information included in this post is for informational purposes only and should not be taken as legal or financial advice. We may earn a commission when you click our links. But what benefits does it offer, and why would you want to consider this investment? Read on to learn more.ĭisclaimer: REthority is supported by ads and participation in affiliate programs. If so, you’ve heard about fractional homeownership.

Divvy credit