SAN FRANCISCO, May 2, 2019 /PRNewswire-PRWeb/ -- Divvy Homes, a platform that creates home owners, launches a new, streamlined mobile application process which in a mere 15 minutes lets prospective home buyers know their budget for a forever home. Once complete, the home purchase process begins, and part of every subsequent rent payment builds equity for a new generation of owners.
Divvy believes in the value of homeownership, aiming to create a world where every person can own their forever home. Divvy helps renters build wealth, provide stability to their families, giving them the benefit of home equity and appreciation.
"Our goal is to create a home buying experience that creates access to and simplifies the path toward homeownership," said Brian Ma, Divvy co-founder and Chief Product Officer. "By expediting their application process and getting them a home budget within 15 mins, Divvy allows them to quickly get to the part they love most - finding their dream home."
Once a renter is ready to break the cycle of "throwing money away on rent," they apply through Divvy, are pre-qualified, budgeted for purchase, approved and connected to a real estate agent to go house hunting. From helping them find a home they love, to navigating the complexities of buying, training on the good habits of owning, and building equity for a down payment, Divvy ensures safe entry into America's primary wealth builder.
"Our mission is to help 100,000 families purchase their first home in the next two years," said Adena Hefets, co-founder and CEO of Divvy. "We measure our success every time a renter gets the keys to their forever home, and again when they buy the house back from us."
Traditionally getting a mortgage and buying a home is a lengthy, strenuous process that fewer people are able to undertake, making the American Dream of homeownership unattainable. Millions of people are unable to buy homes not because they can't afford it, but because the process wasn't designed for today's realities of employment, complex finances and family structure.
Divvy saw the opportunity to simplify the home buying process and make it accessible by using AI to create a dynamic application process personalized to a buyer's financial situation while distributing underwriting to make faster and more informed decisions on applicants. What used to take days in a traditional mortgage application process now takes minutes - allowing Divvy to process tens of thousands of applications in mere minutes every month.
From there, Divvy purchases the property - requiring only 2% down from the renter, who is now officially on the path to home ownership. By allowing Divvy to have access to a renter's finances, Divvy can provide a personalized plan towards achieving homeownership. Approximately 25% of each subsequent rent payment goes into building equity, so the new residents have what they need to buy their home in three years. If they change their mind, Divvy buys the home back; if they want to buy it faster, homeownership can be accelerated.
Divvy Homes creates homeowners. Currently available in Atlanta, GA; Memphis, TN; and Cleveland, OH, Divvy is backed by Caffeinated Capital, a16z, SciFi VC and DFJ. Divvy was incubated in Max Levchin's startup studio HVF by Adena Hefets, previously of Square and Brian Ma, previously of Zillow. With Divvy, renters select any home on the market, Divvy purchases it, and the renter builds equity credits in the home with every payment. Divvy's mission is to create a world where every person has a stake in the neighborhood and home they live in.
SOURCE Divvy Homes