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Construction Loans

Construction Loans in Florida

Ground-up construction financing for Florida real estate investors. Fund new builds from lot purchase through completion.

Get Pre-Qualified →Call (732) 754-2144

Why Florida Is a Strong Market for New Construction

Florida is one of the strongest real estate investment markets in the country, driven by consistent population growth, no state income tax, and year-round tourism demand. The state attracts both domestic and international investors looking to capitalize on its thriving short-term rental market and steady long-term rental demand. South Florida, Tampa Bay, and the Orlando metro area are consistently among the top markets for DSCR loan volume nationwide.

Florida offers real estate investors significant opportunities in new construction - from build-to-rent single-family homes to infill development in growing metro areas. A construction loan lets you finance ground-up projects with draw-based funding, so you only pay interest on what's been disbursed. Sinai Capital shops your Florida construction deal to 50+ lenders to secure the best rate and highest leverage for your project.

Florida Real Estate Market at a Glance

Median Home Price

$407,000

Median Rent

$2,100

Avg Cap Rate

6.2%

Foreclosure Type

Judicial

State Income Tax

None

Landlord Friendly

Yes

Miami-Dade County alone saw over $8 billion in real estate investment transactions in the past year, with DSCR loans being the preferred financing vehicle for rental property acquisitions.

Top Florida Markets for New Construction

Miami, FL

Active construction market with strong demand for new builds

Tampa, FL

Active construction market with strong demand for new builds

Orlando, FL

Active construction market with strong demand for new builds

Jacksonville, FL

Active construction market with strong demand for new builds

Fort Lauderdale, FL

Active construction market with strong demand for new builds

Construction Loan Requirements in Florida

Loan Terms12-24 months
Loan-to-Cost (LTC)Up to 85%
Interest Rates9% - 14% (varies by lender and experience)
Minimum Credit Score680+ (some lenders accept 660)
Time to Close21-30 days
Draw Schedule4-6 draws tied to construction milestones
Plans & PermitsRequired - architectural plans, building permits, and contractor bids
Loan Amounts$150,000 - $10,000,000+
Property TypesSingle-family, townhomes, multifamily, mixed-use
Experience1-2 completed projects preferred (not always required)

Florida Lending Regulations & Tax Considerations

Foreclosure & Lending Laws

Florida does not impose state-level licensing requirements on commercial mortgage brokers. The state uses a judicial foreclosure process, which typically takes 6-12 months. Florida has strong landlord protections and relatively straightforward eviction procedures compared to many states.

Tax Implications for Investors

Florida has no state income tax, making it one of the most tax-friendly states for real estate investors. Property tax rates average around 0.89% of assessed value, which is below the national average. There is no state capital gains tax.

How to Get a Construction Loan in Florida

1

Submit your project details

Fill out a quick pre-qualification form with your Florida construction project details - lot info, project scope, budget, timeline, and contractor. Takes about 2 minutes. No credit pull required.

2

We shop 50+ lenders for your best terms

We send your deal to our network of 50+ lenders who finance Florida construction projects. Each lender competes to offer you the best rate, highest LTC, and most favorable draw schedule.

3

Choose your terms and break ground

Pick the offer that works best for your Florida build. We handle the paperwork and push your deal to closing. Most construction loans close in 21-30 days so you can start building.

Florida Construction Loan FAQ

What is a construction loan for real estate investors in Florida?+
A construction loan in Florida is short-term financing designed to fund the ground-up construction of investment properties. Unlike a traditional mortgage, funds are disbursed in stages (called draws) as construction milestones are completed. These loans typically cover 12-24 months and can finance everything from lot acquisition through project completion.
How do construction loan draws work in Florida?+
Construction loan draws in Florida are disbursed on a schedule tied to project milestones - for example, foundation, framing, rough-in, and completion. After each phase is finished, a third-party inspector verifies the work, and the lender releases the next draw. You only pay interest on the funds that have been disbursed, not the full loan amount. Most lenders require 4-6 draws over the life of the project.
Can I finance the lot purchase with a construction loan in Florida?+
Yes, many construction lenders in Florida will finance the lot purchase as part of the construction loan. Typically, the lot cost is included in the total project budget and factored into the loan-to-cost (LTC) ratio. Some lenders will finance up to 85% of the combined lot and construction costs. If you already own the lot free and clear, you can often use your equity as part of your down payment.
What are construction loan rates in Florida?+
Construction loan rates in Florida typically range from 9% to 14%, depending on your experience, credit score, project scope, and loan-to-cost ratio. Rates are higher than permanent financing because construction loans carry more risk for lenders. Working with a broker like Sinai Capital who shops your deal to 50+ lenders helps you find the most competitive rate for your Florida project.
Do I need construction experience to get a construction loan in Florida?+
Experience requirements vary by lender. Some Florida construction lenders require at least 1-2 completed projects, while others will work with first-time builders if you have a licensed general contractor, detailed plans, and strong financials. Having an experienced GC on your team significantly improves your approval odds and can help you secure better rates.
Can I use a construction loan for a build-to-rent project in Florida?+
Yes, build-to-rent (BTR) construction loans are available in Florida. These loans finance the construction of properties you intend to hold as rentals rather than sell. Many lenders offer a construction-to-permanent loan that converts into long-term DSCR financing once the property is completed and leased, saving you the cost of refinancing into a separate permanent loan.

Ready to Finance Your Florida Construction Project?

We shop your Florida deal to 50+ lenders to find you the best rate and highest leverage. No credit pull. No commitment. Takes 2 minutes.

Get Pre-Qualified →Call (732) 754-2144

Other Loan Products Available in Florida

DSCR LoansBridge LoansFix-and-Flip LoansCash-Out RefinanceCommercial LoansPortfolio LoansForeign NationalBank Statement

Construction Loans in Other States

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