Home Real Estate Divvy launches new product aimed toward homeownership readiness

Divvy launches new product aimed toward homeownership readiness


Proptech startup Divvy is beginning 2024 with a brand new product launch. Identified for its rent-to-buy product — which gives homebuyers with an all-cash provide and permits them to lease a property till they’re prepared to purchase — the corporate is launching a homeownership readiness program, DivvyUp, in response to an announcement on Wednesday.

“We spent a variety of time speaking to our present buyer base and attempting to determine precisely what they wanted, and what they wished to really feel extra supported from Divvy,” CEO Adena Hefets, a 2020 HousingWire Rising Star, mentioned.

“We went by way of a complete bunch of person analysis interviews, and the place we got here again to was that prospects wished extra assist within the technique of stepping into homeownership. They wished to grasp their credit score, they wished to grasp their debt-to-income ratio, they wished to grasp construct their financial savings, they usually wished schooling.”

With these buyer wants in thoughts, Hefets and her staff got down to create DivvyUp. When a buyer enrolls, the platform has customers full an onboarding questionnaire to assist Divvy perceive their homeownership targets and monetary state of affairs. Divvy then makes use of this data to calculate the person’s homeownership readiness timeline, giving the person perception into various factors that affect their readiness, together with down fee financial savings, credit score rating and debt-to-income ratio.

“It is vitally aligned with our mission,” Hefets mentioned. “It gives a basis to assist our present buyer base and future buyer base be capable of really feel like they’re being supported with greater than only a rent-to-own program, however one thing that may actually information them step-by-step by way of an motion plan of get mortgage prepared.”

DivvyUp gives customers with a personalised motion plan of steps they’ll take to get authorized for a mortgage. The platform’s homeownership readiness calculator additionally permits customers to determine methods to shorten their homeownership timeline, or to see how actions like paying down debt or saving extra every month might affect their timeline.

In line with Hefets, actual property brokers can register with Divvy. In the event that they ship a buyer to DivvyUp, the corporate will then contact the agent to allow them to know when the purchaser is prepared for homeownership.

To this point, Hefets mentioned the suggestions on DivvyUp has been optimistic and the product has a waitlist of greater than 16,000 prospects. The platform is at the moment accessible to customers in Arizona, Colorado, Florida, Ohio, Minnesota, Missouri, Tennessee and Texas, and it prices $14.99 monthly after a five-day free trial.

“There are a variety of private finance apps on the market, however I really feel these cater to the tech neighborhood greater than the typical American, who simply needs to take a fast look to see the place they’re good financially and what they should repair, together with the steps to take to enhance it,” Hefets mentioned. “The value level can also be nicely beneath that of different credit score restore packages.”

Wanting forward, Hefets mentioned the corporate is planning to develop the footprint of DivvyUp, with potentialities that embody budgeting modules and a mortgage market.

“We’re in the beginning of what will be a large product construct,” Hefets mentioned. “I feel this can be a first iteration of what we’re finally attempting to get at.”

After what Hefets describes as a “actually robust yr” for proptech corporations in 2023, she is grateful that Divvy continues to be standing and capable of proceed innovating and launching new merchandise.

“It hasn’t been simple,” Hefets mentioned. “We went by way of a number of rounds of layoffs that had been painful and there have been many late nights the place I went by way of each single line on our P&L in search of extra prices. However we took swift motion to make it possible for Divvy survived, and we’re lucky that this expertise made us quite a bit stronger and extra resilient.”

Hefets mentioned the agency has spent the previous yr ensuring it’s working an environment friendly enterprise. It’s constructing out core merchandise and infrastructure like DivvyUp that may assist prospects obtain their dwelling buy targets.

“Even in the course of the darkest days with Divvy, I stored pondering that we are able to’t fail as a result of now we have prospects counting on us,” Hefets mentioned.

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