Comparative Guide to Florida Hard Money Lenders

Hard money loans are asset-backed financing options where borrowers secure funding using their properties. Typically aimed at investors and real estate companies, these short-term loans differ from traditional long-term financing, offering terms of 1-3 years instead of 15-20 years. Before choosing a lender, it's essential to compare key parameters. Below is an overview of three prominent Florida lenders:

LendingHome: Specializing in short-term residential funding for single-family and multi-family properties, LendingHome offers up to 90% Loan-to-Value (LTV) and 75% After Repair Value (ARV). They typically lend for around 12 months with interest rates between 7% and 12%. Lender fees range from 1.5% to 2.5%, with closing costs of 2-5%. There’s no prepayment penalty. They have over a billion dollars in capital, processing times of 10-15 days.

Patch of Land: Providing short-term residential and commercial loans for mixed-use developments, offices, and shopping centers, Patch of Land offers up to 80% LTV and 70% ARV. Loan terms range from 12 to 36 months, with fixed interest rates between 7.99% and 13%. Lender fees are 2-5%, with similar closing costs, and no prepayment penalties. They also hold over a billion dollars in capital, with a 10-15 day processing period.

Lima One Capital: Catering to both residential and commercial projects, Lima One Capital offers loans up to 80% LTV and 70% ARV, with durations from 1 to 30 years. Interest rates vary from 4.99% to 12%. Fees include 1.5-3.5% lender charges and 2-5% closing costs, with no prepayment penalties. Their capital reserves exceed a billion dollars, and processing takes roughly 10-15 days.

All lenders require a minimum credit score of 550, with proof of funding showing LTV between 10-30% and ARV of 25-30%.