Startups That Offer New Paths to Homeownership

Divvy buys homes with cash on consumers behalf. The buyers only pay ½% down and move in for a 3-year lease.

High home prices and a limited supply of homes have made it difficult for some people to enter the market.

Divvy makes most of its money from rent, but also from the appreciation of the home at sale.

ZeroDown offers a similar rent-to-own service, but in very hot real-estate markets.

Flyhomes - $140M raised with a16z/Shasta/Canvas.

This is designed to help a buyer’s bid stand out: because offers are all-cash, they’re accepted 68% more than the average bid. Flyhomes makes money from commissions paid by sellers.

Some new startups have thus emerged to offer new paths to homeownership:

Divvy - $180M raised with a16z/Caffeinated/Max Levchin.

ZeroDown - $30M in equity led by Sam Altman/Goodwater + 100M debt with Credit Suisse.