Home Selling DivvyUp Guarantees Customized down cost financial savings

DivvyUp Guarantees Customized down cost financial savings


DivvyUp is a mobile-first software program answer for serving to aspiring homebuyers perceive what goes into saving for a down cost.

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Lease-to-own firm Divvy is providing a brand new program for aspiring homebuyers referred to as DivvyUp, designed to offer a holistic strategy to getting ready for possession, a March 13 press launch acknowledged. The brand new providing is extra about “homeownership readiness” than mere credit score restore or monetary worthiness, the corporate stated.

DivvyUp will supply customized, long-form motion plans that revolve round making use of for and tackling a mortgage, specializing in what’s most important in incomes approval and going past the corporate’s preliminary rent-to-own transition mannequin. The corporate stated it has 16,000 individuals on the waitlist for DivvyUp.

In a cellphone name with Inman, Divvy founder and CEO Adena Hefets stated that this distinctive client want is a perfect alternative for software program to advance what the corporate has already created.

“That is the primary factor our buyer requested for,” Hefets stated. “They stated, ‘You guys assist us pay for the down cost however not anything, you don’t assist us with credit score, you don’t inform me what I want to alter on my bank cards, or my installment loans.’ We heard that, and found out a method to try this.”

Adena Hefets, CEO of Divvy Homes, at ICNY 2020

Adena Hefets, CEO of Divvy Properties, at ICNY 2020. | Credit score: AJ Canaria of PlanOmatic / Inside Actual Property

Hefets stated that that is the form of assist the business’s prospects want to essentially make a dent within the new homebuyer sector, and of late, it’s a task extra embraced by fintechs than proptechs or direct business practitioners.

“That is an MVP product,” Hefets stated, that means it’s a minimal viable product, step one to fixing an even bigger want. “I feel there’s a lot extra we have to do.”

DivvyUp engages customers in a cell expertise designed to seize private and monetary knowledge to be built-in into the plan’s steps, breaking down objectives into manageable, palatable narratives and overlapping granular monetary strikes with the larger image.

The applying provides various knowledge units and calculators to assist prospects see the place every greenback goes in relation to the down cost. There are color-coded timelines, clear financial indicators and intuitive motion plan content material to offer custom-made insights.

The subsequent levels of the product embody a extra direct interface with consumer financial institution accounts and different situations the place an individual’s monetary knowledge is used. Hefets stated they will supply deep ranges of hands-on oversight to help their prospects alongside the trail of incomes and leveraging a down cost.

In uncovering the necessity, Divvy surveyed 2,000 customers who weren’t but householders along with present Divvy customers, brokers and former candidates to tug aside what makes shopping for a house so difficult and, typically, emotionally overwhelming. It discovered that many have doubts in regards to the course of of shopping for, that it’s financially out-of-reach and credit-score restrictive.

The corporate cited 2022 analysis by FreddieMac that discovered credit score scores stay the largest barrier to possession, and its personal survey revealed that over half of respondents imagine it takes at the least three years to avoid wasting for a down cost.

“We can’t deny this has been a troublesome yr for homeownership and the housing business basically,” the corporate stated in a press release. “So, we took a step again and turned to our prospects to grasp how else we might assist them on their homeownership journey. We discovered that now, greater than ever, our prospects are on the lookout for a roadmap that gives a path they will comply with to enhance their monetary profile and ultimately personal a house; so we got down to construct this for them.”

Divvy, based in 2017, needs to assist aspiring consumers whose economics want a slight push to tilt the dimensions in the precise route. The corporate is a vocal advocate for extra individuals’s capacity to personal houses and executes its advocacy whereas preserving the agent in thoughts and the customer a precedence.

Whereas expertise continues to underwrite the actual property transaction, making the “work” of shopping for and promoting simpler, Divvy streamlines the human aspect of the transaction, one thing Hefets stated was all the time the true intent of the corporate.

“I used to supply prospects completely customized monetary reviews, form of on the aspect, for enjoyable,” she stated. “There are some big-name client monetary assistant corporations on the market, however they’re actually normal, and credit score restore corporations are actually costly. We simply really need our prospects to really feel supported.”

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