The flexibility of renting with the freedom and wealth building power of homeownership.Divvy Homes, a San Francisco, CA-based homeownership company, raised $110m in Series C equity funding. If renters change their mind, they can walk away from the home and get cashed out for their savings if they want to buy it faster, homeownership can be accelerated. Once found, Divvy purchases the property, while the renter contributes an initial 2 percent of the home value to officially step onto the path to homeownership.Īpproximately 25 percent of each subsequent rent payment goes toward saving for a traditional mortgage, so the new residents have a down payment to buy their home in three years. Buying a home with Divvy starts with a five-minute application that results in an approved home-buying budget and an introduction to a real estate agent who helps find their forever home. How it worksĭivvy partners along every step of the homebuying process, with the goal of helping renters transition into homeownership. To date, the company has raised close to $300M in total capital, with backing from GIC, Lennar, Caffeinated Capital, a16z, SciFi VC. Louis, MO and Tampa, FL, and now Phoenix, AZ and San Antonio, TX – with plans to roll out in more cities in the future. The best agents bring buyer leads and use Divvy as a resource to create more homeowners.ĭivvy has grown rapidly since its launch in 2017, expanding from Atlanta, GA and Cleveland, OH to Memphis, TN to Dallas, TX St. Real estate agents can also use Divvy to grow their business, as the company partners with local agents who take renters out on the town to find their forever home. By expanding into these two cities, the Divvy program is now available to an additional three million people across the country.īased in San Francisco, Divvy is straying from the typical Silicon Valley model, instead looking beyond their own neighborhoods and needs to serve folks everyday Americans looking to access the nation’s greatest wealth builder. And after months of extensive market research and a few company trips, Phoenix and San Antonio were ultimately selected for their strong employment, housing fundamentals, and superior home quality. The Divvy team decides what markets the company will expand into after determining where Divvy’s offerings will make the greatest impact. In just two years, the company has helped save an average of $5,000 per household receives more than 10,000 applications each month and has gotten hundreds of folks into homes in existing markets Atlanta, GA Cleveland, OH Dallas, TX Memphis, TN, St. During that time, renters build the down payment savings needed to buy it outright, while also learning the ins and outs of responsible homeownership. Divvy partners with renters on their path to homeownership by helping them find their budget for a home, buying the home they want, and then renting it back to them for three years. “As we continue to join more communities, we’re so excited to give more people access to the wealth-building opportunity of homeownership.”ĭivvy believes in the value of homeownership, aiming to create a world where every person can own their forever home. “The American Dream of owning a home is still very much there, even as macroeconomics have made it harder for many to imagine themselves fulfilling that dream,” said Adena Hefets, co-founder and CEO of Divvy. With nearly $300 million in combined equity and debt capital, Divvy will continue to thoughtfully expand into new cities to work toward its goal of creating hundreds of thousands of homeowners.
Now, residents in Phoenix, AZ and San Antonio, TX can safely transition from renter to owner with Divvy in lock-step along the way. Divvy Homes, a company that creates homeowners through its unique savings model, today expands into two new markets.
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