![]() The remaining purchase price, closing costs, taxes, and insurance are all covered by Divvy.Īfter Divvy closes on the home, a buyer enters into a 3-year rental agreement with them. This allows a buyer to get into their home for less than $6,000 in upfront costs. In exchange, the buyer compensates Divvy with a 2% payment of the home’s selling price. Once the home is selected, Divvy pays for the house in cash on half of the buyer. Related> Rent to Own – A Home Buying Option With No Down Payment Required How Does it Work?Ī buyer can select a home from one of the markets Divvy operates in. That means that individuals who may not have enough for a down payment, or are self-employed, or have a low credit score - or simply aren’t sure if they’re ready to own a home in the first place - will still have an opportunity to buy a home through Divvy. But unlike landlords, Divvy defers to the renter to coordinate and make decisions on repairs, giving prospective buyers the opportunity to test out home ownership and learn about what it takes to own a home.ĭivvy offers a path to homeownership by allowing buyers to build equity in a home while still renting it. ![]() After the rental term is up, buyers can buy their home.ĭuring the three-year lease period, Divvy covers maintenance and repair costs - just like a landlord would. The buyer then makes rent payments while also setting aside money for a future down payment through Divvy. The company purchases a home on a buyer’s behalf. Monthly payments will likely be higher than with traditional rentingĭivvy Homes is a new way to help homebuyers purchase a home through a rent-to-own model.Missing a payment can significantly impact a buyer’s credit score.Divvy is only available in certain housing markets.Homebuyers enter a 3-year lease with Divvy that can’t be broken.On Monday, just a day before the rescheduled court date, Cardinale announced on Facebook that he and Divvy had come to a tentative settlement agreement, and that a “joint statement coming in a week or two with good news to report. They were set to spar in Fulton County Superior Court on May 25, but, Cardinale told Curbed, the judge was feeling under the weather, and the hearing was postponed. “Cardinale appears to have entered into the lease for purposes of his own agenda as a housing advocate and not in a good faith effort to pursue homeownership under the Divvy Homes program,” according to legal documents provided by Divvy.ĭivvy retained law firm Troutman Sanders to handle the lawsuit, while Cardinale, a recent law school graduate, was prepared to represent himself. So, in early April, Divvy sued Cardinale, hoping to void their lease, claiming, among other complaints, that his experience as a self-proclaimed housing advocate meant he’d entered into the lease agreement in poor faith. ![]() But, after he had Divvy make some $12,000 worth of fixes to bring the structure up to housing code, the company seemed to realize it was likely to lose money on the home and stopped working on it, he said. ![]() In February, he contracted to eventually buy the property from Divvy for about $146,000-after a few years of renting from the company, granted.ĭivvy, however, might not have understood how low a price tag that is, especially considering the impact the Beltline’s nearby Westside Trail will likely have on the neighborhood.Ĭardinale has told Curbed Atlanta he knew his new place was going to be a fixer-upper before he moved in. Unlike typical rent-to-own operations, which largely exist to help lower-income people work toward homeownership when credit is too poor to secure a mortgage, Divvy allows people to pick out their homes, rent for a few years, and then buy at a predetermined price.Ĭardinale, who publishes local politics blog Atlanta Progressive News, identified a house he liked in Westside Atlanta’s Hunter Hills neighborhood, knowing the area was primed to see property values jump in years to come. The company’s high-profile squabble with Cardinale recently shed light on the struggles some Atlantans are facing when trying to find creative ways to enter the homebuying fold. Matthew Cardinale, a homebuyer who’s been embroiled in a lawsuit with his rent-to-own landlord Divvy Homes, reached a tentative settlement this week with the company, signaling a possible end to the legal melee.ĭivvy, a San Francisco-based tech startup, recently introduced to Atlanta its unique spin on homebuying. ![]()
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