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What are the Costs of Hard Money Loans in Florida?

In Florida, hard money loan costs and duration vary depending on the lender and situation. Generally, hard money loans in the area have origination fees of two to four points and interest rates between 8.99% and 12.00%. Loan terms can range from a short three months to as long as 15 years, particularly for hard-to-finance properties such as cannabis facilities. Additional expenses may involve drafting and reviewing loan documents, costing between $1,095 for a lender or broker and $3,500 for an attorney.

Unlike conventional mortgages, hard money loans don’t have a fixed pricing structure, but fluctuate based on the borrower and property circumstances. These factors include:

  1. Loan Type: First Capital Trust Deeds (FCTD) provides eight distinct hard money loan types and various bank programs.
  2. Property Type: Closing costs for a single-family home bridge loan are typically lower than for a construction loan for 10 speculative homes.
  3. Project Scope: A $30,000 cosmetic fix-and-flip project is a less complicated loan than an 18-property, cross-collateralized blanket loan involving a mix of commercial and residential rental properties.
  4. Funding Source: As a hard money mortgage broker, FCTD sources loans through five different funding sources—individuals, real estate offices, family offices, conduit lenders and mortgage funds—each with their own preferences for property types and scenarios to finance, which consequently affects their pricing structure.
  5. Capital Availability: Complex projects with numerous variables attract fewer lenders, increasing the cost of funds. In contrast, straightforward, low-leverage financing scenarios (less than 50% LTV) offer a broader range of funding sources.
  6. Borrower Experience Level: First-time house flippers typically face larger down payments, higher closing costs and elevated interest rates compared to seasoned investors who have bought and sold multiple properties annually over an extended period.
  7. Financial Strength of the Borrower: Borrowers with a solid financial track record will benefit from a lower cost of funds than those with a history of debt defaults.

For more information on costs, read our Hard Money Loan Pricing, Interest Rates, Fees, Closing Costs blog post.

AirBnB Vacation Rental Financing Loan

First Capital Trust Deeds is a mortgage brokerage focused on hard money lending. In Florida, the company is licensed for residential consumer purpose and business purpose loans.

This means we originate loans for investors holding titles individually or in trusts for their primary residences, second homes or investment properties. The mortgage broker license allows us to work with clients vesting any way they prefer.

In addition to Florida, FCTD holds mortgage broker or mortgage lender licenses in our home state of California, as well as Oregon, Washington, Idaho, Montana, Utah and Arizona. Over the years, many of our California-based clients have taken their equity gains from California and invested in lower-cost states including Florida. 

What Sets First Capital Apart

What Sets First Capital Apart

Florida Hard Money Bridge Loans

Why Investors Use Hard Money Loans

As hard money mortgage brokers, FCTD has worked through numerous loan scenarios with real estate investors over the years. It seems like each month we encounter a brand-new scenario. It’s what makes hard money lending so interesting.

This blog post, Why Do People Use Hard Money Loans? 20 Examples, details 20 unique examples from just the past two years of loan scenarios we’ve brokered and helped close on time. Hard money lending is always interesting and dynamic — and keeps us on our toes. 

Hard Money Fix and Flip Financing Southern Oregon
Private Money Loans Southern Oregon

Disclaimer: Information, rates, and pricing are subject to change without prior notice. All loans subject to borrowers and underlying collateral meeting First Capital Trust Deeds’ and/or assigns then-current underwriting criteria. Other restrictions apply.

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