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.

UpEquity - latest YC batch.

For a $10k fee, ZeroDown will buy a home on a consumer’s behalf and rent it to him for 5 years. Each month, Consumers earn equity in their home. After 5 years, they have credits worth 15% of the home’s value.

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

The company typically works with high-credit-score borrowers (>700) and makes money by charging an additional 1% of the home’s price in closing costs.

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

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

1. Bypass down payments/mortgages with lease-to-own contracts:

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.