When investors use it
Auction purchases, properties needing work before they can be conventionally financed, and situations where a conventional timeline would lose the deal.
Florida mortgage pillar
Private money loans in Florida.
Short-term, collateral-focused capital with a defined exit.
Direct answer
Florida Private Money Loans: what should Florida borrowers know?
Private money loans are short-term, asset-based mortgages underwritten primarily on the property and the exit strategy rather than on conventional income documentation. In Florida they are used for time-sensitive acquisitions, properties that cannot yet qualify for conventional financing, and bridge situations. They carry higher costs and short terms, so the exit matters more than the entry.
Reviewed by Vabasso Mortgage editorial team · Mortgage lending review · Last reviewed
- Speed and flexibility are the trade for higher cost and shorter term.
- The exit — sale or refinance — should be defined before closing.
- Property condition and value drive the decision.
- Not appropriate for long-term primary-residence financing.
Planning the exit
Most private money is repaid by selling the property or refinancing into longer-term financing such as a DSCR loan. Underwriting that exit in advance is the discipline that keeps these loans safe.
Costs to model
Interest, points, holding costs, insurance, taxes, and the renovation budget all belong in the analysis alongside a realistic timeline.
Popular loan programs
Financing options commonly considered here
Programs commonly explored alongside florida private money loans. Eligibility, terms, and availability depend on the borrower, the property, and current program guidelines.
These are commonly considered programs — not a commitment to lend. Eligibility, pricing, and structure depend on your profile and the specific property.
Private Money
Private Money Loan
Speed and flexibility from private capital.
Explore program DSCRDSCR Loan
Qualify on the property's cash flow.
Explore program InvestmentInvestment Property Loan
Tailored programs for real estate investors.
Explore program ConstructionConstruction Loan
One-time close, ground-break to keys.
Explore programMortgage calculators
Run the numbers before you decide.
Downloadable resources
FAQs
Common questions about buying in Florida Private Money Loans
How fast can private money close?
Faster than conventional financing in most cases, though the specific timeline depends on the property and documentation.
Is private money the same as hard money?
The terms are often used interchangeably for short-term, collateral-based lending.
Can I use it for a home I will live in?
It is generally structured for investment purposes; consumer-purpose use is limited and regulated.
What happens if my exit is delayed?
Extension options vary and carry cost. Building schedule margin into the plan is prudent.
What refinances a private money loan?
Frequently a DSCR or conventional investor loan once the property stabilizes.
Related Florida resources
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Related glossary terms
Mortgage Glossary
MortgageAnnual Percentage Rate (APR)Loan-to-Value (LTV)Debt-to-Income Ratio (DTI)Pre-ApprovalClosing Costs
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Information on this page is educational and does not constitute a loan approval, rate quote, or commitment to lend. Eligibility depends on borrower, property, and program guidelines. Vabasso Mortgage is an Equal Housing Lender.