Divvy Homes Rent-to-Own Company 2025 Review: Why It’s the Best for New Buyers
Best for New Buyers
Rent to own
- Soft credit check
- Co-tenant allowed
- Percentage of rent can be applied toward equity
- Limited to select properties Divvy already owns
- Limited state availability
- Closing fees
- No pets
| What portion of rent goes toward saving for purchase? | Varies (0% – 25%) |
| Term length | 3 years |
| Min. credit score | 550 |
| Min. income | $2,500/month |
| Max. DTI | 50%* |
Divvy Homes is a rent-to-own company that offers a path to homeownership through renting. Founded in 2017, the company works by having customers rent the home they want to buy while they build a down payment. Divvy is especially helpful for customers who have low credit scores or might have trouble qualifying for a conventional mortgage for other reasons.
Recently, Divvy announced a Brookfield private real estate fund will acquire it for approximately $1 billion at the end of February 2025. An arm of Brookfield, Maymont Homes, will manage Divvy’s customers and homes. Despite these changes, we think Divvy Homes will remain a top choice for new buyers in 2025.
Table of Contents
What is Divvy Homes?
Divvy Homes is a company that offers rent-to-own agreements. Rent-to-own agreements are when companies buy a home a customer wants and rent it back to them. The customer becomes a tenant of Divvy, usually paying slightly higher-than-market-value rent because Divvy saves a portion of the rent towards a future down payment.
The goal is for the customer to become a homeowner by buying the home from Divvy at the end of their lease. This type of path to homeownership is called alternative financing. The Pew Research Center estimates that one in 15 homeowners uses alternative financing for their homes. This includes rent-to-own agreements, seller financing, and land contracts.
Alternative financing helps people with slightly lower credit scores or who are self-employed qualify for a mortgage when they might not at a traditional lender.
Divvy’s eligibility requirements
Here are some of Divvy’s eligibility requirements for a rent-to-own contract. You can apply in five minutes, and Divvy does not conduct a hard pull on your credit. Customers pay 1% to 2% of the purchase price of the home to move in, which goes towards a future down payment savings fund.
One of the benefits of a rent-to-own company is that eligibility requirements are more lenient than conventional mortgage lenders. For example, Divvy only looks at your last three months of income, whereas traditional lenders typically like to see two years of solid work history. Here’s a closer look at those details.
| Requirement | Detail |
| Credit score | 550 |
| Income | $2,500 per month |
| Initial fee | 1% to 2% of the purchase price |
| Credit check | Soft credit check |
| Background check | No bankruptcies or evictions in the last 12 months |
States with Divvy homes for rent
Divvy is only available in certain metro areas in certain states, with plans to expand to other markets in the future. Here is where you can get a Divvy home (as of January 2025):
- Atlanta, Georgia
- Cincinnati, Ohio
- Cleveland and Northeast Ohio
- Dallas/Fort Worth, Texas
- Denver/Colorado Springs and Northern Colorado
- Fort Lauderdale, Florida
- Fort Myers, Florida
- Houston, Texas
- Jacksonville, Florida
- Macon, Georgia
- Memphis, Tennessee
- Miami, Florida
- Minneapolis, Minnesota
- Orlando, Florida
- Phoenix, Arizona
- Pueblo, Colorado
- San Antonio, Texas
- St. Louis, Missouri
- Tampa, Florida
How does Divvy Homes work?
If you’re wondering how the rent-to-own process works, it is uncomplicated, though lease terms and the purchase price will vary from property to property. Here are the steps you’ll take:
Application process
You can apply for a Divvy home in minutes. You’ll need to provide a valid government-issued photo ID, your employment history, evidence of your monthly household income, and your social security number so Divvy can conduct a soft pull and check your credit.
Although the timeline varies from property to property, Divvy states that you can move into your home in two to three weeks. You’re technically moving into a rental and are working toward eventually purchasing your home. So, you won’t have to go through a lengthy closing process like you would with a typical home purchase.
How you build equity
Each month that you pay rent, you build equity in your home. Divvy states that 10% to 25% of your monthly rent payment will go toward saving to purchase your home in the future. Divvy offers several payment options for each home it offers.
You can decide how long you want to rent before purchasing and the percentage of your payment that you want to go toward your home savings account. Even if you initially planned to purchase a home at the end of a three-year lease term, you can decide to buy it early at any point during your lease.
Lease terms
Carefully review your lease terms, including the length of the lease, whether or not your rent will increase and how often, and what happens if you decide not to purchase your home at the end of your lease. Divvy determines rental prices, and your contract should state whether or not rent increases each year.
You aren’t obligated to buy the property at the end of your lease term. Divvy states you can end your lease early with a 60-day notice, and you can keep any savings you built during your lease minus a relisting fee. The relisting fees are steep, however, and equal 2% of the initial purchase price.
Some customer complaints stated they thought they’d get back a large amount of their savings but didn’t. That’s why it’s important to read through your contract and understand how much your relisting fee would be if you break your lease or decide not to purchase the home.
Buying a Divvy home
If you decide to move forward with purchasing your home, the process will be different from a traditional home purchase since you’ve already been living in the property. Here’s what to expect:
- Deciding when to buy: You can purchase your home at any time during your lease term, whether it’s after a few months or at the end of the three-year lease. Divvy provides a set purchase price for each year, so you’ll know in advance how much it will cost to buy the home.
- Getting a mortgage: To buy the home from Divvy, you’ll need to secure a mortgage from a lender. Your savings from the rent payments can be used as part of your down payment, which may help you qualify for better loan terms.
- Completing the purchase: Once your mortgage is approved, you’ll go through a standard closing process with Divvy as the seller. Any remaining equity savings will be applied toward your purchase.
Understanding these steps upfront can help ensure you’re fully prepared to transition from renting to owning—or to walk away without surprises.
Pros and cons of Divvy Homes
Before choosing Divvy for a rent-to-own contract, there are several pros and cons to consider first.
Pros
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Soft credit check
If you’re trying to improve your credit, Divvy Homes conducts a soft credit check when you apply, not a hard pull, which does not negatively affect your credit score.
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Co-tenant allowed
You can apply for Divvy Homes with a co-tenant, which can help you meet income requirements.
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Only three months of income needed
It’s challenging to get approved for a conventional mortgage if you’re self-employed or recently changed jobs, but Divvy only needs to see your last three months of income.
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Percentage of rent can be applied toward equity
Every month, a portion of your rent will go into a savings account, which you can use toward purchasing your home in the future.
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An alternative path to homeownership
Divvy helps people who might not otherwise qualify for homeownership get the chance to own a home.
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Purchase the home anytime
Some rent-to-own companies only allow customers to purchase a home at the end of the lease period, but Divvy allows customers to buy the home anytime during the lease process.
Cons
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Limited availability
Divvy is only available in 19 metropolitan areas, although the company plans to expand across the United States in the future.
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Recent acquisition
Though acquisitions can be positive in many ways, it’s currently hard to predict the future of Divvy since it was recently sold to a new buyer.
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Pet policies vary
Divvy states that pet policies vary, so you might not be able to have a pet in your home in some markets.
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Closing costs
You are responsible for paying your closing costs if you choose to purchase a home during or at the end of your lease term.
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Customer complaints
There are many customer complaints about Divvy on trusted review websites, namely about communication and maintenance issues.
Recent developments and company stability
If you’ve been considering becoming a Divvy customer or if you’re already a Divvy customer, you might be worried about its recent acquisition and overall company stability. In a recent press release, Divvy said all current rent-to-own contracts would be honored during the transition to new ownership.
The acquisition comes after a troubling time for the company. TechCrunch reports that Divvy had to conduct three rounds of layoffs in 2022. Economic challenges, surges in rent prices, and increasing customer complaints led to bad press, which the CEO responded to directly. Although the $1 billion acquisition price is impressive, Divvy was valued at $2.3 billion in 2021.
Ultimately, we don’t know the total impact the acquisition will have. Additionally, it’s also challenging to predict the housing market. However, Divvy is going to a reputable housing management company and has assured current customers that the transition will be smooth.
Is Divvy Homes legit? What customers say
Yes, Divvy Homes is a legitimate company. The Center for Real Estate Technology and Innovation (CRETI) reported that Divvy raised over $700 million in debt and equity from well-known venture capitalists. Company reviews on reputable sites have a mixture of happy customers and dissatisfied customers.
The main issues customers reported were lack of communication and delays in maintenance requests. Other customers cited challenges with home inspections not being thorough. Some customers had difficulty getting their savings back after deciding not to purchase the home. In general, it seems that the company had a strong start but declined in service over time.
| Platform | Rating | Number of reviews |
| Trustpilot | 3.1/5 | 204 |
| BBB | 3.35/5 | 248 |
| 3.5/5 | 317 |
Again, now that Divvy will be acquired, new management could improve customer service response times. However, it will take time for customers to write reviews about their experiences under the new leadership.
Companies like Divvy Homes: How does it stack up?
There are several other rent-to-own companies to consider. Here’s how Divvy compares to Home Partners of America and Landis, along with the criteria you should consider when deciding to work with a rent-to-own company.
Of note is that Home Partners of America is in the process of winding down the business after a period of layoffs.
| Criteria | Divvy Homes | Home Partners of America | Landis |
| Minimum credit score | 550 | 600 | 550 |
| Lease term | Up to three years | Up to five years | Up to two years |
| Income requirement | $2,500 per month | $3,500 per month | $3,000 per month |
| Soft credit check | Yes | No | Yes |
| Fees | 1-2% of the home’s price | Security deposit and other administrative fees | Third-party appraisal fees |
| Closing fees | Yes | Yes | No |
| Buyout option | Any time | Any time | Only at the end of the lease |
In general, when comparing rent-to-own companies, it’s important to choose one that’s transparent about pricing and has excellent customer service. When you’re entering into a rent-to-own agreement, it’s also a good idea to have an attorney review your contract.
Before signing, understand exactly how much of your rent goes towards your down payment savings each month, what happens if you miss a rent payment, and the price you’ll pay for the home at the end of your lease if you decide to purchase it. It’s also good to know the company’s responsibilities, like how quickly they’ll respond to maintenance requests.
FAQ
Who is Divvy Homes’ CEO?
As of January 2025, Adena Hefets, who also co-founded the company in 2016, is the CEO of Divvy Homes. Hefets has a strong background in real estate and finance, having previously worked at Square, where she led financing products, and at PIMCO, where she focused on large-scale real estate deals.
What are the biggest pros and cons of programs like Divvy Homes?
Programs like Divvy Homes offer renters a structured path to homeownership, making it possible to save for a down payment while living in the home they plan to buy.
These programs often cater to individuals with lower credit scores or limited savings, helping them achieve homeownership sooner. Plus, participants can test out a property and neighborhood before committing to a purchase, which adds flexibility and reduces risks.
However, rent-to-own programs often come with higher monthly payments compared to traditional renting because a portion is allocated toward future equity. If tenants decide not to purchase the home, they may forfeit the equity portion of their payments.
These programs can also be limited in availability, operating only in specific metro areas, which may exclude some prospective buyers. Also, a break in the lease or inability to meet payment obligations could result in losing initial investments.
What is Divvy Homes’ valuation?
As of January 2025, Divvy Homes is valued at approximately $1 billion following its acquisition by Maymont Homes, a division of Brookfield Properties. The acquisition highlights Divvy’s strong position in the rent-to-own market and its appeal to institutional investors focused on residential real estate.
This valuation underscores the company’s success in creating an innovative pathway to homeownership for renters across the U.S.
How we rated Divvy Homes
LendEDU evaluates home equity companies to help readers find the best home equity agreements. Our latest analysis reviewed 208 data points from 8 companies, with 26 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.
These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.
| Company/product | Rating |
| Divvy Rent-to-Own Agreement | Best for New Buyers |
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