Platform to fractionalize home ownership
US housing affordability has been an ongoing problem and it’s getting worse. Rising rents, rising home prices, stagnant incomes, and stricter lending rules have made it difficult for buyers to pay off student loans and save for down payments. Young families are seeing their dream of homeownership escape them.
Divvy makes homeownership more accessible for young families, by allowing renters to purchase a fraction of a home (fractionalization) via a rent-to-own contract. Rent-to-own is not new, but has traditionally been a very predatory industry where the landlord’s knowledge of pricing and contracts have allowed them to take advantage of the renters. Divvy’s rent-to-own program is designed to change that. In the Divvy program, a buyer will put 2% down, then pay a monthly amount that includes both rental and equity payments. The equity portion will buy back more of the home overtime. Divvy has purchased homes in Seattle, Cleveland, and Atlanta, and will be expanding to more areas soon.