| Why trust us: To create this comprehensive guide, we researched the available housing options in Jacksonville, consulted with local housing experts, and had the guide reviewed by a real estate professional with rent-to-own experience. Learn more. |
Rent-to-own homes in Jacksonville provide a pathway to homeownership for those with low credit or limited funds. These arrangements allow you to rent a property first, with the option to buy it later.
However, rent-to-own homes are rare in Jacksonville. Nathan Claire, a realtor with Realty One Corp. and founder of Buying Jax Homes, notes that they make up only 5% of all transactions in the area.
He explains that rent-to-own listings are hard to find on the MLS and popular real estate websites like Zillow. Only two national rent-to-own companies, Home Partners of America and Trio Homes, operate in Jacksonville, limiting your options.
Read our guide to learn more about rent-to-own homes in Jacksonville and consider your other options.
What to know about rent-to-own homes in Jacksonville
Higher-than-market cost of living
Rent-to-own companies in Jacksonville often require 1–2.5% down, on top of an application fee, security deposit, or earnest money. While this is less than the typical 3-5% down payment for a government loan, these extra expenses can quickly add up.
In a rent-to-own agreement, you might also be responsible for some or all of the home's repair and maintenance costs, unlike traditional rentals where the landlord covers these expenses.
Plus, your monthly rent might be higher than for a traditional rental. For example, rent-to-own company Divvy Homes reportedly charges 37% more for its rentals in Jacksonville than other landlords.[1]
Missing even one payment could put your entire investment in the home at risk, as you can get evicted and lose your rent-to-own deposit and savings.
"People commit and put money down without realizing the other terms of the agreement aren't as easy for them to keep up with," Claire warns, "and they end up losing their whole down payment."
» MORE: Rent-to-own Pitfalls: How to Avoid Getting Stuck in a Bad Deal
Volatile home prices
Jacksonville home prices have experienced significant volatility over the past few years. While prices rose by over $100,000 post-pandemic in 2020, median list prices have been flat since July 2022.[2]
This volatility concerns rent-to-own homes because lenders base their loans on a home's appraised value. If the appraisal is low, customers may need to pay the difference out of pocket, extend their leases, or end the contracts.
Compare rent-to-own options in Jacksonville
Rent-to-own agreements in Jacksonville can be a viable pathway to homeownership for those with less-than-perfect credit, relatively low monthly income, and a small deposit. It can provide more flexibility and accessibility than purchasing a home outright. Local landlords may also be more open to negotiation than national rent-to-own companies.
🏆 Top pick: Home Partners of America
Home Partners has nearly 1,000 rent-to-own homes listed in the Jacksonville area. It's relatively easy to qualify, requiring a low minimum credit score and minimal up-front costs.
Divvy Homes is a newer entrant in the Jacksonville market. It has relatively lax qualification requirements, with the lowest minimum credit score and income requirements among the reviewed companies. However, Divvy may charge as much as 37% more than other rentals (e.g., $1,500 versus $2,055 for Divvy).[1]
Landis is the most challenging option for qualifying as it requires a strong income. It also has one of the most expensive down payment requirements, with an initial deposit of 2-3%. Due to its stringent requirements, Landis works best for those who can afford a traditional mortgage but may be new to the area and don't want to commit to a specific location.[3]
Because of its stringent requirements, Landis works best for people who could afford a traditional mortgage but may be new to the area and don't want to commit to a specific location.
Local landlord listings
You can find rent-to-own landlords and investors on Zillow, Realtor.com, and Rent-to-Own Labs.
Working with a local landlord or investor can be more flexible than dealing with a bank or mortgage lender. For example, a small-business owner in Jacksonville who doesn't qualify for a mortgage loan due to unreported income might successfully negotiate a rent-to-own contract with a local landlord.
"The landlord is more likely to work with them if something happens financially, compared to a financial institution or bank, where they don't even know the person running it," says Claire.
Local landlords offering rent-to-own may request a down payment of 5–10%, comparable to traditional financing options. However, securing a rent-to-own listing through a local landlord can offer more flexibility if the home's appraisal is low at the time of purchase.
🏡 Get help from a local realtor
A real estate agent with direct rent-to-own experience can be a valuable resource for finding legitimate listings in Jacksonville and guiding you through the process. A reputable realtor can help you:
- Determine if rent-to-own is a good option for you compared with a mortgage or renting and saving
- Alert you to red flags in available housing options and rent-to-own listings in your area
- Direct you toward local housing resources, such as down payment assistance programs or housing grants
While we always recommend consulting with a local realtor or attorney before entering into any rent-to-own agreement, rent-to-own makes up a small percentage of the real estate market — only about 5% in Jacksonville, according to Claire.
With most agents focusing on traditional listings, finding a Jacksonville rent-to-own realtor on your own could be challenging. Clever can match you with an experienced local buyer's agent for further assistance.
Rent-to-own home alternatives in Jacksonville
Note: Some assistance programs require a home buyer education course.
Down payment and closing cost assistance programs
Home Sweet Home provides a 30-year deferred, no-interest second mortgage of up to $20,000, which must be used for down payment and closing costs. Buyers need a minumum FICO score of 640 to qualify.
The Chenoa Fund is a down payment assistance program designed to help homebuyers, especially those who struggle to save for a down payment. To qualify, you need a minimum credit score of 600, and your income must meet specific limits relative to your area's median income. Additionally, you must qualify for an FHA loan, as the Chenoa Fund is exclusively compatible with FHA loans.
State grants
Teacher Next Door offers housing grants of up to $8,000 for all Florida teachers and staff. This program provides a minimum non-repayable grant of $1,000 to be used toward purchasing a home, with the possibility of additional down payment assistance up to $10,681.
Florida Housing offers several down payment assistance programs, including forgivable second mortgages. Eligibility for these programs can vary based on income, credit score, or other factors.
Local affordable housing options
Jacksonville Housing Authority offers affordable housing to low-income residents through its housing choice voucher program (formerly known as Section 8).
Habitat for Humanity Jacksonville assists low-income families in building and purchasing their own homes. To qualify, applicants must demonstrate a need for affordable housing, be willing to invest "sweat equity" hours in the construction process and demonstrate the ability to pay an affordable mortgage.
First-time home buyer loans
| Loan type | Min. down payment | Min. credit score | Max. debt-to-income level |
|---|---|---|---|
| FHA | 3.5% | 10% | 580 | 500–79 | 43% |
| USDA | None | Varies by lender | 41% |
| VA | None | 580 | 41% |
| Rental | 1–2 months rent | 680 | 33% |
| Conventional | 20% | 620 | 45% |
FHA loans
FHA loans are a popular choice for first-time home buyers who lack a substantial down payment. With these loans, it's possible to buy a house with as little as 3% down and qualify with a low credit score.
USDA loans
USDA loans provide low-interest rates and require no down payment, which can make them affordable for first-time buyers looking for a home in a rural area. Some areas located outside of Jacksonville may be eligible for a USDA home loan, such as the towns of Green Cove Springs, Kingsland, and Macclenny.
» SEE: USDA Eligibility Map
VA loans
Active-duty service members, veterans, and surviving spouses may be eligible for home loans through the Veterans Administration (VA). This loan program offers 0% down and has a low minimum credit score requirement, although specific requirements may vary by lender.
🔎 Pro tip
Your credit score affects your ability to qualify for a mortgage. Check your credit score now, and you can take work to improve it and correct any mistakes in your credit report.
Not sure where your credit stands? Get your credit report at AnnualCreditReport.com. This free resource gives you access to your scores from all three major credit bureaus (Equifax, Experian, and TransUnion) once a year.
Free resources in Jacksonville
Local housing counselors
Pre-purchase, rental, and housing counselors can give you free, unbiased opinions on rent-to-own arrangements and direct you toward other housing opportunities in Jacksonville.
» FIND: HUD-approved housing counseling locations in Florida
Housing education programs
Habitat for Humanity Jacksonville offers a first-time home buyer education class in partnership with eHOME America.
Jacksonville Housing's Family Self-Sufficiency Program provides credit counseling, financial literacy classes, mortgage education workshops, and other services.
Wealth Watchers is a HUD-certified Housing Counseling and Community Development organization that offers homebuyer education courses, pre-purchase housing counseling, and various other services.
Why you should trust us
Our team at Clever spent several weeks learning the ins and outs of rent-to-own homes to create this comprehensive guide. We identified legitimate companies that operate in your area, consulted with local realtors, and researched government housing resources.
Our experts
- Nathan Claire, a real estate agent with Realty One Corp. and the founder of Buying Jax Homes.
- Steve Nicastro, a real estate professional who has advised numerous clients on whether rent-to-own housing is a good option for them. His expertise helped us provide a more in-depth understanding of the rent-to-own process.
