Divvy is a sale-leaseback and rent-to-own service that helps buyers build ownership in a home while they are renting it.
A buyer applies for Divvy and is approved for a certain budget. They will partner with a real estate agent to find a home that qualifies under Divvy's terms. Divvy will then buy the home with an all-cash offer and cover all fees except for a small downpayment provided by the buyer. The buyer then rents the home from Divvy, and these rent payments include a portion of equity that helps buyers become eligible for a mortgage. Buyers can buy back the home or move out and cash out the savings they have accrued.
According to most sources, Divvy does not have a strict pricing scale and will set terms on a case-by-case basis with buyers. Typically, Divvy allocates up to 25% of the monthly rent towards equity savings into the home for the buyer.
Divvy primarily makes money by charging rent to buyers it works with. Divvy also works with mortgage professionals and real estate agents, and may generate revenue from referrals to those partners. Divvy also has its own internal brokerage to support buyers.
Divvy is privately held.