Hard money lenders in Florida: usury, licensing, foreclosure speed and costs

For a lender or an investor, one fact frames everything in Florida: florida’s 18% usury ceiling shapes how hard money is priced here — points and fees carry more of the yield than in no-cap states — and its judicial foreclosure means a defaulted loan can take six to fourteen months to reach a sale.

Foreclosure process	Judicial
Typical time to sale	6 to 14 months from first notice or filing
Post-sale redemption	A Florida homeowner may redeem by paying the full judgment amount up until the clerk files the certificate of sale (or a later time set by the judgment).
Deficiency judgment	Allowed
Usury	Florida caps interest at 18% per year on loans up to $500,000 and at 25% on larger loans; rates above 25% are criminal usury regardless of purpose, and the caps apply to business-purpose loans.
Transfer tax	Florida charges documentary stamp tax of $0.70 per $100 on the deed (0.7%; Miami-Dade uses $0.60 plus a surtax on non-single-family property), customarily paid by the seller, plus buyer-side doc stamps of $0.35 per $100 on the mortgage and a 0.2% intangible tax on the loan amount.
Median home price (approx.)	$400,000 · property tax about 0.82%

Usury rules for hard money in Florida

Florida caps interest at 18% per year on loans up to $500,000 and at 25% on larger loans; rates above 25% are criminal usury regardless of purpose, and the caps apply to business-purpose loans. Hard money lenders stay under 18% (or 25%) on the stated rate and price the balance in points and fees, which Florida courts have scrutinized as disguised interest.

This summarizes publicly available statutes and common practice; it is not legal advice, and the rules change. Lenders and borrowers should verify with counsel in the state.

Licensing requirements for lenders and brokers

Florida requires a mortgage lender license for loans secured by residential property made to consumers; business-purpose loans to entities and commercial property loans are generally exempt, though the Office of Financial Regulation expects the purpose to be documented. Loans to individuals on their own homes are consumer loans. Licensing is the first thing to verify — see vetting a lender — because advance-fee scams imitate licensed lenders.

Foreclosure speed: what a lender faces in Florida

Ask any hard money lender what they underwrite after the collateral and they will say the exit — and after the exit, the time it takes to get the property back. Florida runs a judicial process: Every Florida foreclosure is a lawsuit in circuit court. The lender files a complaint, serves the homeowner, and — if the case is uncontested — may use the expedited “show cause” procedure to reach judgment quickly; contested cases move at the pace of the court’s docket. After judgment, the clerk holds a public sale, often online, and issues a certificate of title about ten days later if no objection is filed. Expect 6 to 14 months to a sale in an ordinary case.

A Florida homeowner may redeem by paying the full judgment amount up until the clerk files the certificate of sale (or a later time set by the judgment). There is no statutory right of redemption after that point.

Florida allows deficiency judgments, either within the foreclosure case or in a separate action. Since 2013, for owner-occupied one-to-four family properties, the deficiency is limited to the difference between the judgment and the property’s fair market value on the sale date — not simply the sale price — and the claim must be brought within one year. Full homeowner-side detail on our Florida foreclosure page; the investor-side consequences are in hard money default.

Transfer taxes, property taxes and closing costs in Florida

Florida charges documentary stamp tax of $0.70 per $100 on the deed (0.7%; Miami-Dade uses $0.60 plus a surtax on non-single-family property), customarily paid by the seller, plus buyer-side doc stamps of $0.35 per $100 on the mortgage and a 0.2% intangible tax on the loan amount. Entry and exit costs are fixed; holding costs run with time. In Florida, property tax at roughly 0.82% of value (about $3,280 a year on $400,000) is the largest recurring one after interest.

Florida buyers pay the mortgage doc stamps and intangible tax (about 0.55% of the loan) plus title and lender fees; total buyer closing costs commonly run 2% to 3%, with homeowners insurance premiums — among the highest in the nation — a large prepaid item.

Florida investor markets

Florida is one of the busiest flip states in the country: Jacksonville, Tampa Bay, Orlando, Miami-Dade, Broward and Palm Beach, plus Lakeland and Cape Coral–Fort Myers, all carry volume; insurance costs and HOA rules are the variables investors underprice most often.

Investor activity data (ATTOM and similar) shifts yearly; verify with current local comps before committing capital.

Frequently asked questions

Is hard money lending legal in Florida?

Yes. Florida caps interest at 18% per year on loans up to $500,000 and at 25% on larger loans; rates above 25% are criminal usury regardless of purpose, and the caps apply to business-purpose loans. Florida requires a mortgage lender license for loans secured by residential property made to consumers; business-purpose loans to entities and commercial property loans are generally exempt, though the Office of Financial Regulation expects the purpose to be documented.

How fast can a hard money lender foreclose in Florida?

About 6 to 14 months in an ordinary case (judicial process), plus any cure or notice periods the loan documents add. A Florida homeowner may redeem by paying the full judgment amount up until the clerk files the certificate of sale (or a later time set by the judgment).

What does a typical hard money loan cost in Florida?

Rates of 9% to 14% and 1 to 4 points are the national range. As an illustration only: $340,000 borrowed at 11% with 2 points for nine months is about $34,853 in interest and points, plus fees and carrying costs. See rates, points and LTV.

← Delaware Georgia →