Secure Your Investment: Hard Money Lenders Florida
Are you looking to jumpstart your next real estate project in the Sunshine State with a hard money loan? From renovating a historic home in St. Augustine to securing an investment property in Orlando, hard money lenders in Florida can provide the financial flexibility you need. For individuals with tight deadlines, limited budgets, or less-than-perfect credit, these loans offer a practical alternative to traditional financing.
If you’re a homeowner rather than an investor and need to bridge the timing gap between buying and selling a home, we’ll discuss alternatives to help you leverage your home’s equity. This guide will cover the essentials of hard money loans in Florida, giving you the know-how to decide if this financial option aligns with your real estate goals.
Editor’s note: This post is for educational purposes and is not intended to be construed as financial advice. HomeLight always encourages you to consult your own advisor.
What is a hard money lender?
A hard money lender is a private individual or company that provides short-term loans secured by real estate. Hard money lenders in Florida base their decisions on the property’s potential, unlike traditional lenders who focus on your credit score and income history. Their clients often include house flippers and those purchasing rental properties who need quick access to cash and flexible loan terms.
Hard money lenders use after-repair value (ARV) — the estimated value of a property after renovations — to determine loan amounts. They usually lend a percentage of the ARV to ensure the investment’s security and profitability. Interest rates for hard money loans range from 8% to 15% or more, with repayment periods between 6 to 24 months. Costs can include origination fees, closing costs, and points. Failure to repay can result in the lender seizing the property to recover their investment.
How does a hard money loan work?
If you’re a real estate investor in Florida seeking a financing option that offers speed and flexibility, working with hard money lenders could be a smart move. Here’s a quick rundown of how hard money loans work:
