Florida has no state income tax, deep short-term rental demand, and sustained in-migration. It also has the most complicated carrying-cost picture of any major investor market in the country. Since 2022, insurance availability and pricing have reshaped what a Florida rental actually costs to hold, and any underwriting that uses a national insurance assumption will be wrong here.
The short answer: A ground-up construction loan funds an investment build from land or teardown through certificate of occupancy. Loans are sized on loan-to-cost — land plus hard and soft costs — and released in draws tied to construction milestones, with interest typically accruing only on drawn funds. In Florida, land availability and local permitting practice vary enough between metros that they belong in the timeline assumption from the start.
New construction activity is concentrated in Central Florida and the I-4 corridor, along with Southwest Florida rebuild activity. Coastal construction carries wind-load and elevation requirements that inland builds do not, and builder’s risk coverage costs more here than in most states. Both belong in the loan-to-cost figure from the start rather than surfacing during draws.
Primary markets: Miami · Fort Lauderdale · Tampa · Orlando · Jacksonville · Fort Myers
Construction underwriting is the most guideline-sensitive product in investment finance. Draw structures, general contractor requirements and borrower experience minimums differ substantially between capital sources, and a project that one source declines on experience alone may be routine for another. In Florida, the exit also matters: a build-to-rent project needs a DSCR takeout underwritten in principle before the construction loan closes.
You have permits, an experienced general contractor, and a build profile a lender has funded many times before.
Your build history is limited, the draw schedule needs flexibility, or the DSCR takeout has not been underwritten yet.
No lender is best for every deal. Kiavi, RCN Capital, Lima One, Dominion Financial, Tidal Loans all write ground-up construction loans in Florida and all are legitimate options. They differ on leverage, credit floors, property types and experience requirements. The useful question is which fits this deal.
Works: A spec builder or build-to-rent investor with plans and permits in hand or close to it, and a defined exit by sale or DSCR refinance.
Does not: Owner-occupied builds, projects without plans or permits, or a borrower with no build track record and no experienced general contractor attached.
Insurance and code. Builder’s risk coverage in Florida costs more than in most states, and coastal construction carries wind-load and elevation requirements that affect both cost and schedule. Both belong in the loan-to-cost figure at the outset rather than surfacing as overruns during the draw process.
The mechanics are the same but the insurance line is heavier, which compresses the ratio at completion. A build-to-rent project in Florida should have its takeout underwritten against a real insurance quote for the finished structure, not a placeholder — that single line has ended otherwise sound projects at refinance.
There is no single best lender for every scenario. Kiavi, RCN Capital, Lima One, Dominion Financial, Tidal Loans all write ground-up construction loans and each has different guidelines. The right answer depends on the specific deal. LendingStreet places the same scenario across 30+ capital sources so the comparison happens on one application.
Yes, in all 50 states including Florida. These are business-purpose loans on non-owner-occupied investment property, from $150,000 with no stated maximum. No W-2 or tax returns required and LLC borrowers are welcome.
Have a Florida deal? Tell us the scenario and we will price it across our capital sources.
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