Divvy Homes Announces $ 735 Million Debt Financing Just Two Months After Raising $ 200 Million in Series D
SAN FRANCISCO, 12 October 2021 / PRNewswire / – Shared houses, a market leader in the proptech industry, today announced that it has entered into new loan facilities totaling $ 735 million. Combined with $ 200 million Lifted two months ago from the D series, Divvy Homes is well capitalized to continue its mission of making home ownership accessible to all. This debt financing will allow Divvy Homes to provide more Americans with the opportunity to own home through its innovative three-year program. The funds will be used to refinance two existing credit facilities and provide substantial additional capacity to purchase new homes, supporting Divvy’s 10-year goal of helping more than 100,000 families become financially responsible homeowners.
Divvy Homes sets a new path for Americans to become homeowners. Historically, Americans had only two choices: rent or buy their home. The real estate industry has not evolved to respond to the new economy, serving only a fraction of the people who want to own a home. Divvy offers a third option that helps clients save for a down payment while still living in their dream home. By releasing market demand, Divvy has closed more homes in 2021 than in the four years since its founding and has doubled its market share in the past 10 months. More than 750,000 Americans have applied for Divvy’s Home Ownership Program since 2017.
“Securing this additional debt capacity, along with a substantial reduction in our cost of capital, allows Divvy to continue to increase homeownership affordability for more Americans,” said Tom egan, CFO and Head of Capital Markets, Divvy Homes. “We are grateful to our lenders, including Barclays, Goldman Sachs, Cross River Bank, LibreMax Capital and Brigade Capital Management, for their continued support in helping Divvy grow its portfolio. This step means that Divvy can continue to meet growing market demand and meet our customers’ home buying needs. “
Millions of people have been excluded from home ownership due to issues such as imperfect credit, unequal income or low savings. COVID has exacerbated this trend, driving up the cost of homes in the United States. More and more Americans – including nurses, health technicians, teachers, firefighters and 1,099 workers – have been forced to put their dreams of homeownership on hold. Thanks to Divvy Homes, more Americans now have the opportunity to own their own homes and build generational wealth.
“We are grateful for the support of our lenders who are helping us make homeownership opportunities for more Americans. There is no doubt that there is an urgent need to address our country’s housing issues,” said Adena Hefets, co-founder and CEO of Divvy Homes. “Divvy offers an alternative to those caught in the middle: those who don’t have enough savings for a down payment but are financially stable enough to afford a monthly payment for a home. Our success is the success of our customers. Divvy’s customers have exercised their option to purchase their home at a rate of approximately 47%, well above the conversion rates of our competitors. ”
Divvy Homes’ innovative program also encourages long-term financial stability. Its customers often save much more than their peers, forgetting on average $ 8,200 in savings. That’s about 10 times the median tenant savings in America, according to a 2017 study by the Joint Center for Housing Studies of Harvard University.
To learn more about Divvy Homes, please visit www.divvyhomes.com.
About Divvy Houses
Divvy Homes is on a mission to make homeownership more accessible to American families. The program is currently available in 16 major metropolitan areas in the United States: Atlanta, Georgia; Cincinnati, Ohio; Cleveland, Ohio; Dallas, Texas; Denver, CO; Fort Lauderdale, Florida; Houston, TX; Jacksonville, Florida; Memphis, TN; Minneapolis, Minnesota; Miami, Florida; Orlando, Florida; Phoenix, Arizona; San Antonio, Texas; St. Louis, Missouri; and Tampa, Florida. Divvy Homes is backed by Andreessen Horowitz, Caffeinated Capital, GGV Capital, GIC, JAWS Ventures, Lennar, Moore Specialty Credit, SciFi VC and Tiger Global Management. Divvy Homes was incubated in at Max Levchin startup studio HVF and co-founded by Adena Hefets, Nick clark, and Alex Klarfeld.
How it works
Divvy Homes uses technology and a people-centered approach to partner with clients every step of the way in the home buying process, with the goal of helping tenants become homeowners. Buying a home with Divvy Homes starts with a five minute request that results in an approved home purchase budget and purchases with a real estate agent.
Once the client finds their dream home, Divvy Homes purchases the property, while the tenant contributes an initial one to two percent of the home’s value to their down payment savings.
Up to 25% of each subsequent monthly payment is used to save for a down payment, allowing clients to apply for a traditional mortgage when they are ready. A client accumulates up to 10% of the value of the home during their three-year lease, but they can buy the home at any time. If a customer changes their mind, they can leave the house and have their savings withdrawn. Divvy Homes offers the flexibility of tenancy with the freedom and wealth building power of property.
Kelley mccormick, Shared houses
SOURCE Divvy Homes