Comparative Overview of Florida Hard Money Lenders

This comparison guide highlights key features of top Florida hard money lenders, including loan terms, rates, fees, and capital availability. Designed for real estate investors, it offers essential insights for choosing the right short-term financing partner. The article emphasizes the importance of understanding lender requirements, fees, and loan durations to optimize investment strategies within Florida's dynamic real estate market.

Understanding Hard Money Lending in Florida

Hard money loans are asset-backed financing options where the loan is secured by the borrower’s property. Typically aimed at real estate investors or businesses, these short-term loans usually span 1 to 3 years, contrasting with traditional loans that last 15 to 20 years.

Below is a comparison of three prominent Florida hard money lenders:

LendingHome: Specializing in short-term residential financing for single-family homes, multi-family units, apartments, and condos, LendingHome offers loans up to 90% Loan-to-Value (LTV) and 75% After Repair Value (ARV). The average loan term is around 12 months, with interest rates ranging from 7% to 12%. Additional fees include lender fees of 1.5-2.5% and closing costs of 2-5%, but there is no prepayment penalty. They boast over a billion dollars in capital, processing in approximately 10-15 days.

Patch of Land: Providing both residential and commercial loans, Patch of Land caters to properties such as mixed-use developments, offices, and retail centers. They offer up to 80% LTV and 70% ARV, with typical terms between 12 and 36 months. Interest rates are fixed between 7.99% and 13%. Fees include lender costs of 2-5% and closing expenses of 2-5%, without prepayment penalties. Their capital exceeds a billion dollars, with a 10-15 day processing period.

Lima One Capital: Serving both residential and commercial sectors, Lima One provides short-term loans for single-family homes, apartments, offices, and shopping centers. They offer up to 80% LTV and 70% ARV, with durations ranging from 1 to 30 years. Fixed interest rates are between 4.99% and 12%. Additional charges include lender fees of 1.5-3.5% and closing costs of 2-5%, without prepayment penalties. They also have over a billion dollars in available capital, processed within 10-15 days.

All lenders typically require a minimum credit score of 550 and proof of funding sufficient for 10-30% LTV and 25-30% ARV.

Important Notice: The data provided is based on research, market information, expert insights, and available statistics. Variations may occur depending on individual lenders and changing financial conditions. We are not responsible for inaccuracies or differing opinions. It is advised to consult a financial professional before finalizing any borrowing decisions.