![]() ![]() “Not everyone has a W2 job that they’ve been in for a number of years. Realizing the tremendous challenges faced by so many prospective homeowners, Divvy Homes is helping those left behind by the traditional mortgage process find the path to home ownership through a reimagined rent-to-home business model. Coupled with college debt and low credit scores, all of these factors have largely barred a huge swath of Americans from purchasing. Home prices are soaring, and, in many cases, incomes aren’t able to keep pace.įor many lower-income or first-time home buyers, raising a down payment and qualifying for a loan presents insurmountable barriers to entering the market.Īccording to the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index, in the 1st quarter of 2021, Los Angeles homebuyers earning income on par with the local median income of $78,700 could afford no more than 11.6% of the homes on the market.Įven financially solvent would-be buyers with nontraditional income sources can have trouble gaining entry into homeownership with rigid underwriting guidelines and 20-40% down payment requirements. Inventory is tight, and mortgage rates are rising. The path to homeownership has never been more challenging. “Our highest priority is to educate, support and partner with our homebuyers to make sure they transition smoothly into homeownership,” Ma said. “Our program is specifically designed to be fair and transparent - we want every home purchase to be a win for our customers.Dotloop J| comments With Homeownership Out of Reach for Many, Divvy is Delivering the American Dream to Renters in 16 Markets Across the U.S. “For anyone who has just moved, just changed jobs, they’re watching the housing market go up and they can’t participate.”ĭivvy currently owns about 12 Atlanta-area homes, and Ma says those numbers are growing each month. “Atlanta is interesting to us because it’s a super diverse economy, and it’s experiencing a lot of job growth and a lot of housing appreciation,” Ma said to Hypepotamus. Ma, who has worked in the real estate industry for 15 years, including a stint at Zillow, also showed interest in Atlanta for another reason - the city’s socioeconomic disparities that make affordable housing a challenge for the lower and middle classes. Over the next three years, the buyer pays both rent and equity, with the goal of obtaining 10 percent ownership of the property.Īt the end of the three years, Divvy lets the renter put the credit they’ve earned toward a mortgage to purchase the home. If the renter ultimately decides not to buy the home, Divvy will still cash out their equity credits.įounder Brian Ma chose Atlanta as a launch site because of the diversity of its economy and its recent employment boom. Divvy Homes, a startup that helps renters transition to homeownership, recently chose Atlanta as one of its three launch cities, alongside Seattle and Cleveland.Īfter a consumer chooses a home on the market, Divvy buys it and the consumer puts around 2 percent down. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |