DivvyUp is a mobile-first software solution that helps aspiring home buyers understand their down payment savings.
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rent-to-own company Divi The company offers a new program for aspiring homebuyers called DivvyUp, which is designed to provide a comprehensive approach to preparing for home ownership, according to a March 13 press release. The company says the new product is more about “homebuying readiness” than just credit repair or financial value.
DivvyUp will provide a personalized long-term action plan around applying for and processing a mortgage, focusing on the factors most critical to getting approved and moving beyond the company’s original lease-to-own transition model. The company said there are 16,000 people on DivvyUp’s waiting list.
Divvy founder and CEO Adena Hefets said in a phone call with Inman that this unique consumer need is an ideal opportunity for the software to advance the company’s existing products.
“That’s the number one thing our customers ask for,” Hefetz said. “They said, ‘You’re helping us with the down payment, but you’re not helping us with anything else, you’re not helping us with credit, you’re not telling me what I need to change on my credit card or my installment loan.'” We heard the news, and Found a way to do this. “
Divvy Homes CEO Adena Hefets speaks at ICNY 2020. Photo credit: AJ Canaria/Inside Real Estate for PlanOmatic
Hefets said this is the help industry clients need to really make headway in the new homebuyer space, and lately, fintechs have been more willing to embrace this role than proptechs or direct industry players.
“This is an MVP product,” Hefets said, meaning it’s a minimum viable product, the first step toward solving a larger need. “I think there’s a lot more we need to do.”
DivvyUp puts users in an action experience designed to capture and integrate personal and financial data into planned steps, breaking down goals into manageable, palatable narratives and granular financial actions that overlap with the big picture.
The app provides numerous data sets and calculators to help customers understand how every dollar relates to their down payment. There are color-coded timelines, clear economic indicators, and intuitive action plan content to provide customized insights.
The next phase of the product includes a more direct interface with users’ bank accounts and other instances of using personal financial data. Hefets says they can provide in-depth, hands-on oversight to help clients earn and leverage down payments.
To uncover this need, Divvy surveyed 2,000 consumers who are not yet homeowners, as well as current Divvy users, agents, and previous applicants to find out what makes buying a home so challenging and often emotionally overwhelming. reason. The survey found that many people are wary of the buying process, finding it financially unaffordable and limited by their credit scores.
The company cited FreddieMac 2022 Research Finds credit score remains biggest barrier to ownership, and own investigation It was revealed that more than half of the respondents believed it would take at least three years to save enough for a down payment.
“We cannot deny that this has been a difficult year for homeownership and the real estate industry as a whole,” the company said in a statement. “So we took a step back and reached out to our customers to understand how else we could Supporting their home buying journey. We understand that now more than ever, our clients need a roadmap that provides them with a path they can follow to improve their financial situation and ultimately own a home ;so we started building this for them.”
Founded in 2017, Divvy hopes to help aspiring buyers whose finances need a little nudge to tip the scales in the right direction. The company is a strong advocate for the ability of more people to own homes and puts agents and buyers first when executing its advocacy.
While technology continues to power real estate transactions and make the “job” of buying and selling easier, Divvy simplifies the human aspect of the transaction, which Hefets said was always the company’s true intention.
“I used to provide clients with completely customized financial reports, just for fun,” she said. “There are some big-name consumer finance assistant companies out there, but they’re really average, and credit repair companies are expensive. We really want our customers to feel supported.”
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