Lease-to-Own Homes: How They Work & Top Programs Like Divvy

If you’re not quite ready to buy a home but want to work toward ownership, lease-to-own programs could be the solution. These programs let you rent now and buy later, giving you time to save, build credit, and prepare for homeownership. But how do they actually work? Let’s break it down.

How Lease-to-Own Programs Work

You Choose a Home
- You work with a lease-to-own company (like Divvy) to select a home within their approved price range.
The Company Buys It for You
- The company purchases the home on your behalf, and you sign a lease agreement to rent it.
Part of Your Rent Goes Toward Buying the Home
- Each month, a portion of your rent is set aside as a future down payment if you decide to buy the home.
You Have the Option to Buy
- At the end of the lease term (typically 1-3 years), you can purchase the home at a predetermined price—or walk away if it’s not the right fit.

Top Lease-to-Own Programs

1. Divvy Homes

✅ No large upfront down payment required
✅ Portion of rent builds your home savings
✅ Flexible lease terms (3-year option)
🔹 Catch: Home prices are locked in, so if the market shifts, you may pay more than market value.

2. Landis

✅ Credit-building support and coaching
✅ Works with people with low credit scores
✅ Down payment savings included in rent
🔹 Catch: Must qualify for a mortgage by the end of the lease term.

3. Home Partners of America

✅ Wide selection of homes
✅ Fixed purchase price upfront
✅ Can rent for up to 5 years before buying
🔹 Catch: Requires solid income and rental history.

4. Dream America

✅ Targets first-time buyers and renters who want to own
✅ Helps improve credit and qualify for a mortgage
✅ Only a 1-year lease before purchase
🔹 Catch: Higher income requirements than some other programs.

Is Lease-to-Own Right for You?

✅ Great for:

People with low credit scores who need time to qualify for a mortgage
Those who don’t have a full down payment saved yet
Renters who want to lock in a home now before prices rise

🚨 Be Careful If:

You’re not 100% sure you want to stay in the home long-term
The contract includes extra fees or penalties if you don’t buy
You can qualify for a traditional mortgage sooner (it might save you money)

Final Thoughts

Lease-to-own programs can be a great stepping stone to homeownership, but they’re not for everyone. Make sure you read the fine print, understand the costs, and have a plan to qualify for a mortgage by the end of your lease.

👉 Thinking about lease-to-own? Let’s chat and see if it’s the right move for you!