Here’s an Alternative Way to Buy a Home — That Doesn’t Require a Huge Down Payment

A woman peels back the tape from a box as she and her husband unpack their household items in their new home.
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According to your Instagram and Facebook feeds, everyone is buying homes these days.

That’s great, really, congratulations to them! But how? The market is hot, and homes are expensive — not to mention taxes and closing costs, which all add up.  

It probably feels like you’re going to rent forever. Might as well sign your life over to your landlord, right?

Don’t let your dream of homeownership die so fast, though. There’s a company that wants to help you become a homeowner.

It’s called Divvy Homes, and it could make you a homeowner in three years or less — even if you don’t have a perfect credit score or a huge down payment already saved. 

How to Buy a Home — Even if You Haven’t Saved For a Down Payment

We get it. This almost sounds too good to be true, but Divvy is already helping hundreds of people become homeowners. 

Divvy’s program combines the best of both renting and homeownership. Here’s how it works: 

  1. You get to choose a home you love, and Divvy buys it on your behalf. As soon as the closing process is complete, you can move in. You’ll make monthly payments until you’re ready to buy the home from Divvy (or move out). Your payments include a portion that goes to your future home savings.
  2. Move in and enjoy your new home. Even though you don’t truly own the home — yet — you can still make your home yours. You can paint, replace carpet, decorate, enhance the landscape and perform other cosmetic alterations. Oh, and Divvy takes care of any major maintenance needs. Need a new roof? Divvy’s got it covered. Air conditioning go out? Divvy will cover the tab.
  3. After three years, or even before, you have the option to buy the home. The best part is that Divvy counts a portion of each monthly payment as savings toward equity, so after three years, you should have saved up enough for a 10% down payment on the home. With Divvy’s program, whenever you’re ready to buy the home from Divvy, you can.

Is Divvy a Good Option For You? Here’s What to Expect

If you’re settled in an area and want to buy a home but can’t afford a down payment, Divvy could be a great option.

It’s free to see if you qualify, and it doesn’t take more than about four minutes in most cases. No visits to the bank, no lengthy phone calls, no impact on your credit score. This isn’t binding, so you’re not automatically stuck in some agreement just for checking out your options.

Here are a few points to keep in mind:

  • Find out if you’re pre-qualified for Divvy in as little as four minutes. 
  • Divvy is currently available in Atlanta, Dallas, Cleveland, Tampa, St. Louis and Memphis, with plans to expand into more cities this year.
  • Divvy buys the home for you, but keep in mind you’ll need to put 1% to 2% down at closing, and Divvy will handle the rest of the tab.
  • You make a monthly payment to Divvy. Part of that is rent (approximately 75%), and part of that is home savings that can go toward your future down payment (approximately 25%).
  • At any time during the three-year lease, you can buy the home from Divvy with the money you’ve saved each month.

And here’s another perk: If for some reason you don’t want the house at the end of the three-year period, you’re not required to buy it.

As soon as you get approved by Divvy, you can start shopping for homes. You can work with your preferred real estate agent, or Divvy can introduce you to one.

And remember, once you find your dream home, Divvy puts in a cash offer, greatly increasing your chances of getting the home.