The 51-year-old woman, who has stage 3 breast cancer and lives in a rented house, thought she would “go to her grave” without a home. That was until she discovered Divvy Homes’ rental program.

“Rental costs almost all of your money,” Rudy says. “It’s like being punished by having to pay more rent for something that will never be yours.”

This was especially frustrating for people who didn’t move around much and dreamed of owning a home. In fact, Rudy has lived in a rented house for more than 10 years, and before that he rented another property for seven years. But Rudy’s daughter, Anna DeHaven, found a viable solution in 2021, allowing her mother to finally buy a home in her early 50s.

How to move from renting to owning

Debby HolmesThanks to Home Rental Services, Rudy was able to start paying rent on his home for about 15 months before closing. Rudy, then 51, started the Divvy Homes program in the spring of 2021, shortly after being diagnosed with stage 3 breast cancer.

Through Divvy Homes, Rudy selected a home in his price range in Rome, Georgia, a small town of about 35,000 people. Divvy Homes then purchased the two-bedroom brick ranch in spring 2021 for $137,000 and rented it to Rudy for $1,430 per month. The company also covered post-inspection repairs on 1950s homes that were not covered by the original seller. This includes a new water heater, air conditioning system, and electrical wiring throughout the house.

The difference when buying through the Divvy Homes program is that a portion of each month’s rent is actually deposited into a savings account, which is then used as a down payment on Rudy’s eventual home purchase.

Can you afford your first home?

The Divvy Homes program is designed for hopeful homeowners like Rudy who can’t afford a mortgage or don’t have enough savings for the down payment and closing costs associated with buying a home. Those considering homeownership can apply online through Divvy. Divvy asks applicants for financial information and the area in which they are considering purchasing. Divvy Homes then gives approved applicants a shopping budget and customers can select eligible homes on the market through their real estate agent or Divvy.

Divvy Homes then uses this budget to purchase the customer’s home in all cash. In fact, many Millennials and other buyers looking to enter the housing market are being overwhelmed by all-cash offers, some by tens or even hundreds of thousands of dollars over the asking price. There is also. This process has allowed Rudy to compete in a market that would otherwise have been difficult.

“There was no other way to save money other than to save up for rent.” [as part of the Divvy program]and need additional money as a down payment to purchase a home for the rest of their lives,” says Rudy. “Without that, I would still be renting and going to my grave without owning anything.”

closing on your first home

After choosing the house he wanted, Rudy moved into the house and started paying rent. Rudy lived there for 15 months, paying rent, until he was able to begin the process of purchasing the home through Divvy. Divvy’s purchase price for the home was $147,500 with a 5.25% mortgage, which brought her monthly payment, which includes mortgage and property taxes, to $1,145, far less than her monthly rent of more than $1,400.

“There are very few livable homes in that price range on the market. They need significant renovations,” Rudy says. “If I had just started the process, I probably wouldn’t have been able to afford it.” [to buy] Everything is out of my price range, so anything goes,” she added, reflecting on how Divvy’s process helped her secure the home.

The closing process was a bit murky for Rudy, who was undergoing treatment for cancer at the time. (She has since gone into remission and is still recovering from the side effects of her cancer treatment.) Fortunately, DeHaven, who had worked for many years at a mortgage company, was available to help her mother through the process.

“The closing process was very easy,” DeHaven said. “We did FHA [Federal Housing Administration] The down payment funds from Divvy were sufficient for closing. Eventually she got her money back. ”

Rudy ultimately closed on the home in August 2022.

“I’m actually saving money and investing in my own things. I can do what I want and have something for my daughter, but she’s not without me. “When you choose to use it,” Rudy says. “It’s great to own a home. I feel more connected to the community because I’m a property owner and a taxpayer. It’s the American dream.”

more luck Housing market and home ownership scope: