Divvy Homes Benefits
If you’re thinking about getting a home, there are a number of benefits to getting a Divvy Homes loan. The most obvious benefit is that you won’t have to pay any of the maintenance costs, but there are also other advantages to this type of financing. For instance, if you’re planning to buy a new home in the future, you can start saving money today toward a down payment. You can also raise your credit score, and if you’re dealing with existing debt, you can work to get out of it.
Maintenance costs are covered
It’s no secret that home ownership is challenging. There are unexpected repairs and maintenance expenses to handle, equipment breakdowns, and more. That’s why Divvy Homes offers maintenance coverage for its renters.
In fact, Divvy provides a checklist to help tenants keep track of their ongoing maintenance duties. These tasks must be completed and consistently executed.
If a major repair or renovation needs to be done, a tenant must first consult with a vendor for approval. Otherwise, they may make a minor change at their own expense.
While Divvy does cover some of the costs involved with maintenance, it doesn’t cover cosmetic improvements. Among other things, the company doesn’t cover appliances or landscaping.
Rather than paying a contractor, Divvy has a savings fund to hold 10-25% of the monthly rent. Those funds can be used as a down payment in the future.
You save money each month towards a future down payment
If you’ve always dreamed of owning your own home, but don’t know where to start, you may want to look into Divvy Homes. This rent-to-own company helps individuals become homeowners by offering them a path to a mortgage.
In exchange for monthly payments, you earn a portion of your home’s value in equity credits. These credits are gradually built up over the course of three years. You then use the equity to make a down payment for your home.
Before you can buy your first home, you need to have a good down payment. One way to help you get the down payment you need is to save money every month. By setting aside a portion of each paycheck, you can treat your savings like a retirement account.
You can raise credit score
Divvy homes is a unique rent-to-own program that allows people to own a home without having to wait for months to save enough money. In exchange, you make an upfront payment of 1% to 2% of the home’s value. This can help you raise your credit score, and also give you a chance to test out homeownership.
Divvy works with a variety of reliable applicants. They will screen applicants and look at their credit history, as well as past evictions, bankruptcy, and income. After they are approved, Divvy will work with the buyer to buy the home.
When the buyer is ready to close, they will take over the mortgage payments. The Divvy team will also make repairs on the property to ensure it is in good shape.
You can manage existing debt
If you have a large student loan debt or are paying off credit card bills, it may be hard to think about buying a house. Divvy Homes is a company that helps renters become homeowners. It works with reliable applicants and offers a hybrid set of responsibilities.
The company was started by Nick Clark, Adena Hefets, and Alex Klarfeld. They work with home sellers to create an affordable way to buy a house. Unlike traditional lenders, they have an alternative screening process.
Applicants are evaluated based on their credit, income, and credit history. Once they pass the soft credit check, they are given a proposal with payment details.
Customers can choose to rent the home for the duration of the three-year rental period or they can purchase it outright at the end of the lease. In either case, they are required to contribute a portion of their monthly rent towards a “home savings fund”. This fund is held by Divvy and holds 10-15% of the buyer’s monthly rent.
You can keep up with “steep” monthly payments
You can keep up with “steep” monthly payments with Divvy homes, if you’re willing to put down some cash. But not all divvy houses are created equal, and some are more suited to your family’s budget than others. Plus, the market is changing rapidly. If you’re looking for a new home, it pays to be informed.
Divvy offers a suite of tools that can help you navigate your way through the housing maze. Not only does Divvy give you access to a new home, but they also handle maintenance and repairs, and even taxes. This is great news for those with less than stellar credit. Even so, this is not the time to be reckless with your finances.