For decades, the rental and homeownership market has been run by business as usual. But the truth is, complacency is never good for consumers, and the status quo needed a shaking up. That’s why Divvy has fought so hard to put a new spin on things, reshaping the way we think both about renting and owning.

But like all great new things, change can seem a little confusing at first. We find that many people are surprised when they first hear how Divvy works.

Here are the top 3 misconceptions about the Divvy rent to own program.

Top 3 Misconceptions About Divvy

1. I can only pick from a few homes!

This couldn’t be further from the truth.

With Divvy, you can choose from nearly any home on the market between $60,000 and $300,000. In the regions we operate in currently, that accounts for 90%+ of all homes, meaning our buyers have thousands and thousands of choices available to them.

Further, this system actually creates an enormous advantage for the buyer because it means that Divvy is buying a home specifically for you. We are on your side, and we want to do everything in our power to negotiate the lowest price, pick the best home for you and inspect it carefully.

We’re here to back you up during this process. We’ll make a strong all-cash offer on the home you choose.

2. I will lose a ton of money if I never buy.

This has been a traditional complaint with the rent-to-own industry, but remember, Divvy has completely changed the system. 

Whereas other rent-to-own agreements force customers to lose out on any capital investments if they do not purchase the property, Divvy is centered on a cash out system. If you choose not to buy your house, you can still cash out your down payment savings.

What’s more, your cash out will be based on the home’s new and possibly appreciated price, not it’s original price. Divvy deducts 1.5% in order to cover the selling costs. You’re sharing selling costs and appreciation gain, just like anyone who puts funds into real estate.

3. Divvy is considerably more expensive than renting.

Divvy helps you save up for a down payment. Sometimes our payments are higher than rent, but that’s because the extra dollars go straight to your future down payment. You are building a 10% down payment over just 3 years – that’s a very accelerated savings rate!

More down payments means you can apply for a mortgage loan sooner, and a strong mortgage loan equates to lower payments in the long run. What’s more, a more substantial down payment means you are opening yourself to more mortgage options: a fixed rate versus adjustable, better loan terms, etc. 

So even if payments seem higher now on paper, once you do the math, you will see that in the long run saving a down payment quickly is the smart way to go.

How Divvy is changing the market

It’s natural for new systems like Divvy to come with some confusion and misconceptions. Divvy is delivering something entirely new, something that we are immensely proud of and something that we know in our hearts will change the real estate landscape forever.

We believe everyone in America should be able to own a home.