From Renter to Homeowner: A Journey to the American Dream
The Struggle with Renting
For many Americans, renting is a necessary evil. But for single mom Kimberly Rudy, it was not just a necessity, but a way of life. With an annual income of $42,000, Rudy’s $1,500 monthly rent payments left little room for savings, let alone a down payment on a home. As she puts it, "Renting pretty much takes every penny you have. It’s like you’re being penalized by being forced to pay more for rent for something that’s never going to be yours."
The Solution: Rent-to-Own
In 2021, Rudy’s daughter, Anna DeHaven, discovered a viable solution to her mom’s housing woes. With the help of Divvy Homes, a rent-to-own home service, Rudy was able to make rent payments toward her future home, with a portion of that payment going into a savings account to cover the down payment on her property.
The Divvy Homes Program
Divvy Homes is designed for hopeful homeowners who can’t afford a mortgage payment or don’t have enough money saved for a down payment and closing costs. The program is simple: applicants apply online, providing financial information and the areas where they’re looking to purchase. Divvy Homes then gives approved applicants a shopping budget, and they can choose a qualifying home on the market through their own real estate agent or one through Divvy.
The Benefits of Rent-to-Own
The process is advantageous for homebuyers, as it allows them to make rent payments toward their future home, rather than a lump sum down payment. Additionally, Divvy Homes covers repairs to the property, including inspections, making the process smoother and less stressful for buyers.
Kimberly’s Journey
Rudy selected a two-bedroom brick rancher in Rome, Georgia, for $137,000, and began making $1,430 monthly rent payments. The company even covered repairs to the property, including a new water heater, HVAC system, and electrical wiring. After 15 months of making rental payments, Rudy was able to begin the process of buying the home from Divvy, with the help of her daughter.
Closing the Deal
Rudy’s closing process was a blur, as she was undergoing treatment for Stage 3 breast cancer at the time. But with DeHaven’s help, she was able to navigate the process, which included an FHA loan and a down payment funded by Divvy. Rudy closed on the house in August 2022 at a mortgage rate of 5.25%, with a monthly payment of $1,145, including mortgage and property taxes.
Conclusion
Rudy’s story is a testament to the power of innovation in addressing the challenges of the housing market. With the help of Divvy Homes, she was able to achieve the American Dream of homeownership, despite the odds. For others facing similar struggles, there are alternatives to traditional homebuying that can make the dream a reality.
FAQs
Q: How does the Divvy Homes program work?
A: Applicants apply online, provide financial information, and select a qualifying home. Divvy Homes purchases the property and rents it to the applicant, with a portion of the rent going toward the down payment.
Q: What are the benefits of the Divvy Homes program?
A: Applicants can make rent payments toward their future home, with a portion going toward the down payment. Divvy Homes covers repairs to the property, making the process smoother and less stressful.
Q: Who is the Divvy Homes program designed for?
A: The program is designed for hopeful homeowners who can’t afford a mortgage payment or don’t have enough money saved for a down payment and closing costs.
Q: How does the closing process work?
A: The process is similar to a traditional home purchase, with the addition of Divvy Homes funding the down payment and closing costs. Applicants must apply online and provide financial information to qualify.
Author: fortune.com
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