Hard money lending — asset-based short-term financing that evaluates the property’s value rather than the borrower’s income or credit history — is the primary financing tool for fix-and-flip investors, BRRRR operators in the rehab phase, and investors who need to close quickly on opportunities that conventional lenders cannot process in time. Florida’s active investment property market supports a robust hard money lending ecosystem: national platforms, regional lenders, and local private lenders all compete for Florida loan volume, producing a competitive rate environment where experienced investors with strong track records can negotiate terms unavailable to beginners. In Q1 2026, hard money rates in Florida typically range from 9.5% to 13.5% interest-only, with 1–3 origination points, on loan terms of 6–18 months. Understanding how to compare lenders across these dimensions — and knowing when a DSCR rental loan is a better alternative than hard money for stabilized properties — is essential for any active Florida investor. This guide explains how hard money works, compares eight lenders active in Florida’s market, breaks down DSCR loans as the preferred long-term alternative, and addresses the Florida-specific due diligence factors every borrower should evaluate before committing to a hard money loan.
How Hard Money Loans Work: LTV, ARV, and Construction Draws
Hard money lenders underwrite based on the property’s value, not the borrower’s income documentation. The key metrics are Loan-to-Value (LTV) and Loan-to-After-Repair-Value (ARLTV or ARV%). Most Florida hard money lenders advance up to 65–75% of the property’s after-repair value (ARV). This means the loan amount is calculated as a percentage of what the property will be worth after renovations are complete — not what it’s worth today in distressed condition. Example: ARV $250,000 × 75% = $187,500 maximum loan. If the purchase price is $145,000 and rehab budget is $35,000, total project cost is $180,000. The $187,500 loan covers the full project cost with $7,500 margin — meaning the lender would fund the purchase and rehab entirely, with no cash contribution from the borrower (in some cases, lenders allow 100% LTC — loan to cost — when the ARV spread is sufficient).
In practice, most hard money lenders require some borrower equity contribution: they lend up to 75% ARV but also cap at 90% of purchase price or 90% of total cost (purchase + rehab). So a borrower acquiring at $145,000 with a 90% purchase LTC cap must contribute at least $14,500 of the purchase price themselves. Rehab funds are typically disbursed through a draw schedule — not upfront. The lender holds the rehab budget in reserve, releasing funds in draws of $10,000–$20,000 as work is completed and verified by drive-by inspection or third-party draw inspector. Most lenders require 3–5 business days from draw request to fund disbursement. Ensure your contractor can manage cash flow during the draw cycle; some contractors will not accept work without upfront material costs, creating a float gap that the borrower must bridge with personal funds.
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Interest during the loan term is charged only on drawn funds (funds actually disbursed), not on the full loan commitment. A $187,500 loan commitment on a project where $145,000 was drawn at purchase and the full $42,500 rehab reserve hasn’t been drawn yet means you’re paying interest only on $145,000 in month one, increasing to the full amount as rehab draws are completed. At 11% annual interest on $145,000, month-one interest is approximately $1,329. Knowing this math helps accurately forecast holding costs during the rehab and lease-up phases.
8 Hard Money Lenders Active in Florida Q1 2026
1. Kiavi (formerly LendingHome): One of the highest-volume fix-and-flip and BRRRR lenders nationally, with a strong Florida presence. Online application process. Fix-and-flip rates: 10.25–12.5% (rate depends on experience tier — experienced borrowers with 5+ prior flips get better pricing). Points: 1.5–2.5. LTV: up to 75% ARV / 90% LTC. Min credit score: 660. Close time: 5–10 business days. Minimum loan: $75,000. Kiavi’s online platform provides real-time rate quotes and draw management. Florida-specific: active in all 67 Florida counties. Best for: mid-experience investors with track record seeking reliable national lender infrastructure.
2. RCN Capital: National lender with strong Florida presence and a competitive pricing tier for repeat borrowers. Fix-and-flip rates: 10.0–12.0%. Points: 1.5–2.5. LTV: 65–75% ARV. Close time: 7–14 days. Min loan: $50,000. RCN also offers 30-year DSCR rental loans, making them a potential single-lender solution for the full BRRRR cycle — bridge loan for rehab, then DSCR long-term for the hold. RCN requires title insurance, which all reputable hard money lenders should. Florida-specific: closes in all Florida markets.
3. LendingOne: National hard money and private lending platform with active Florida presence. Fix-and-flip rates: 10.5–12.75%. Points: 1.5–3.0. LTV: up to 75% ARV. New investor friendly — no minimum number of prior transactions required. Close time: 7–14 days. LendingOne also offers rental DSCR products and bridge-to-rental programs. Min loan: $75,000.
4. Lima One Capital: Major national bridge lender with Florida-specific underwriting experience. Fix-and-flip rates: 9.99–12.5% (advertised). Points: 2–3. LTV: up to 75% ARV. Lima One has tiered pricing based on borrower experience and track record — experienced investors with 10+ completed transactions can access the lowest rates. DSCR rental loan program available for exit financing after stabilization. Min loan: $75,000.
5. Kiavi Multi-Family Bridge: For 2–4 unit investment property bridge loans in Florida, Kiavi’s multi-family product offers competitive terms with the same platform infrastructure as their SFH product. Rates: 10.5–13.0%. LTV: up to 70% ARV on multi-family. Close times similar to SFH product. Particularly useful for BRRRR operators targeting duplexes and triplexes in Jacksonville and Ocala markets.
6. CoreVest Finance: CoreVest specializes in portfolio bridge loans and rental portfolio DSCR financing, making them particularly relevant for investors scaling beyond individual deals. Bridge rates: 10.0–12.0%. Min loan: $500,000 (CoreVest focuses on larger transactions). For investors doing 3+ simultaneous deals or looking to package multiple Florida rentals into a single DSCR portfolio loan, CoreVest provides institutional-quality solutions. Not ideal for single-deal beginners.
7. Civic Financial Services: Civic provides bridge and DSCR loans with flexible underwriting. Fix-and-flip rates: 10.5–13.0%. DSCR rental rates: 7.0–8.5%. LTV on bridge: up to 70% ARV. Civic has a strong presence in Florida’s South Florida and Central Florida markets specifically. They can close bridge loans in 5–10 days and have a same-lender DSCR exit product that streamlines the BRRRR cycle refinance.
8. Local Florida Hard Money Lenders: Beyond national platforms, a tier of local and regional hard money lenders operates in specific Florida markets: Gateway Realty Finance (Jacksonville), First Southern Capital (Tampa Bay/Central FL), and various private individual lenders active in REIA networks. Local lenders sometimes offer more flexibility (will consider deals national platforms decline, may allow lower ARV spreads, more creative structuring) but vary in reliability, speed, and capital depth. Always verify a local lender’s track record (ask for references from recent borrowers, confirm they have the funds available before committing to a timeline), and ensure they use a Florida-licensed title company to protect your transaction. Local lender rates: 11.0–14.0%, often 2–4 points, shorter maximum terms (12 months).
DSCR Loans as an Alternative and Exit Strategy
Debt Service Coverage Ratio (DSCR) loans are the standard long-term financing exit from a hard money bridge loan in the BRRRR cycle. Once the rehab is complete and the property is rented, a DSCR lender evaluates whether the property’s rental income (Gross Rent × 0.75–0.80 for vacancy and expenses) divided by the proposed monthly PITI payment meets the minimum 1.20–1.25x DSCR threshold. DSCR loans do not require W-2 income or tax return analysis — only the property’s income and the borrower’s credit (typically 660+ minimum). This makes DSCR ideal for self-employed investors, landlords with multiple LLCs, and investors whose tax returns show limited personal income due to depreciation and business deductions.
In Q1 2026, DSCR loan rates for Florida investment properties typically range from 7.0–8.5% on 30-year fixed terms, with 1–2 points and minimum 20–25% equity (75–80% LTV). The most competitive DSCR rates come from national non-bank lenders (Kiavi, RCN, LendingOne, KBHS DSCR) and from portfolio bank lenders with Florida presence. Short-term rental (STR/Airbnb) DSCR loans are available from some lenders (Visio Lending is notable for STR DSCR products), using Airbnb/VRBO income history rather than long-term lease rent to qualify — opening DSCR financing to Orlando and Gulf Coast STR operators who previously needed to qualify on conventional terms.
Florida-Specific Considerations for Hard Money Borrowers
Title insurance: all reputable hard money lenders require lender’s title insurance as a condition of the loan. As a borrower, purchase the simultaneous owner’s title policy — typically only a few hundred dollars more at closing — to protect your ownership interest. Florida foreclosure timeline: if you default on a hard money loan, the lender must pursue judicial foreclosure through Florida’s court system. Unlike non-judicial states (Texas, Georgia) where a lender can foreclose in 30–60 days, Florida’s process takes 18–36 months. This actually reduces the urgency of hard money default slightly, but the cost of an extended contested foreclosure is severe — lenders include default interest clauses (often 18–24% on missed payments) that compound quickly. Never enter a hard money loan without a clear exit strategy (sale or DSCR refinance) with timeline buffer.
Insurance: hard money lenders require you to maintain property insurance during the loan term. In Florida’s market, getting a landlord or builder’s risk policy on a property mid-renovation can be challenging — some insurers refuse coverage until the renovation is complete. Vacant dwelling policies and builder’s risk policies (for active renovation) are the typical solutions. Cost: $150–$400/month for a builder’s risk policy on a $200,000 renovation project. This is a holding cost that must be included in your project proforma. After renovation, the policy converts to a standard landlord policy (much lower cost) once the property is occupied.
Frequently Asked Questions
What is the typical timeline from application to closing on a Florida hard money loan?
National hard money lenders can close Florida loans in 5–15 business days for straightforward SFH transactions where title is clean and the borrower’s documentation is organized. The speed depends on: title search turnaround (Florida attorney title search typically 2–5 days), appraisal or BPO turnaround (1–3 days for experienced local appraisers), and the lender’s internal underwriting queue. If your target property has title complications (liens, estate, foreclosure), closing can take 3–4 weeks or more. Local hard money lenders sometimes quote faster timelines (5–7 days) but are limited by the same title and appraisal bottlenecks. Have your entity documents (LLC operating agreement, articles of organization, EIN letter) and personal financial statement ready before applying to avoid delays.
What happens if my Florida renovation goes over budget or over time?
Construction overruns and timeline extensions are the most common hard money loan stress scenarios. Most lenders offer one or two free 30–60 day extensions for an extension fee (typically 0.5–1% of the loan balance). If you’re approaching the maturity date without a clear exit (sale or refi), contact your lender proactively — most prefer to extend rather than initiate foreclosure proceedings, especially if the property is making progress and the ARV remains supportable. If the renovation has materially increased cost beyond your original budget, the lender cannot typically advance additional funds without a new loan modification. Build a 15–20% contingency into your rehab budget before closing — this prevents most budget overrun scenarios from becoming lender conversations.
Does Florida have specific laws governing hard money lending?
Hard money lenders making loans to real estate investors in Florida typically fall under commercial lending regulations rather than consumer mortgage protections. Loans secured by investment or commercial property (not owner-occupied primary residences) are generally exempt from RESPA, the Truth in Lending Act’s residential protections, and Florida’s residential mortgage licensing requirements. Hard money lenders making investment property loans in Florida often operate as mortgage lenders under Florida’s Mortgage Lender Act (OFR-regulated) or as private commercial lenders. Verify that any hard money lender you work with either holds a Florida mortgage lender license or is properly exempt from licensing requirements. Working with licensed entities reduces fraud risk.
Can I use a hard money loan for my first flip with no prior experience?
Yes, but at higher rates and more conservative terms than experienced borrowers. National platforms like LendingOne and Kiavi accept first-time investors but price them at the higher end of their rate range (12–13.5%) and may reduce maximum LTV (65% ARV rather than 75%) to compensate for the additional risk. Local hard money lenders are often more willing to work with first-timers who have a strong exit plan, good credit (700+), substantial equity contribution (25–30%), and an experienced contractor with verifiable references. For your first deal, also consider whether a private money lender in your REIA network (a fellow investor who lends privately) might offer more flexible terms than institutional hard money, particularly for a lower loan amount ($75,000–$150,000) that large platforms aren’t highly motivated to service.
What is the exit strategy requirement most hard money lenders impose?
Before closing, most hard money lenders will ask (and some explicitly require in the loan application) how you plan to repay the loan at maturity. The two standard exit strategies are: (1) sale — you renovate and sell the property before the loan matures, paying off the hard money from proceeds; or (2) refinance — you stabilize the property (rent it), then refinance into a conventional or DSCR long-term loan, using the refi proceeds to pay off the hard money. Some lenders offer in-house refinance bridge-to-DSCR products to streamline the exit. If your exit depends on sale, include market absorption time (days on market for comparable properties) and carrying costs for any period between listing and closing. If your exit is refinance, verify with a DSCR lender pre-closing that your projected stabilized rent will qualify for a DSCR refi at your target ARV — do not assume the DSCR refi will work without pre-qualifying.
Conclusion
Florida’s hard money lending market in Q1 2026 offers investors a range of national and local financing options for fix-and-flip, BRRRR, and bridge transactions across the state’s diverse investment markets. The eight lenders compared — Kiavi, RCN Capital, LendingOne, Lima One, CoreVest, Civic Financial, and regional local options — each offer distinct rate structures, experience tier pricing, and product breadth that align with different investor profiles. DSCR loans provide the most competitive long-term exit for buy-and-hold investors who stabilize after the rehab phase. Florida-specific considerations — insurance during renovation, 18–36 month judicial foreclosure timeline, and the importance of clean title searches — make preparation and professional partnerships essential. Download the Q1 2026 checklist below for a side-by-side rate and term comparison of the top Florida hard money lenders, a rehab draw request template, and a DSCR exit qualification worksheet for post-renovation refinancing.
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