Startups That Offer New Paths to Homeownership

Flyhomes buys the home for you with cash. The Consumer can move in immediately and pay Flyhomes daily rent until the mortgage comes through (2 to 3 weeks).

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

People with steady incomes but less-than-perfect credit are often shut out of buying homes because they can’t qualify for mortgage, or do not have sufficient money saved for a down-payment.

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

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

UpEquity - latest YC batch.

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

Millennials, in particular, face steep obstacles to homeownership because of student-loan debt/low savings.

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.