Florida Private Money Lending:
Licensing, Compliance & Documents

By Anthony Geraci, Managing Partner & CEO, Geraci LLP  |  October 2025

Florida is the third-largest private money lending market in the United States, with particularly active markets in Miami-Dade, Broward, Palm Beach, Orlando, Tampa, and Jacksonville. The state's strong population growth, active fix-and-flip market, and robust tourism economy drive consistent demand for private money loans. However, Florida's judicial foreclosure requirement means foreclosure timelines are significantly longer than in deed of trust states.

This guide covers the essential licensing, usury, foreclosure, and document requirements for private money lenders originating loans in Florida.

Related: Usury Laws by State  |  Deed of Trust vs. Mortgage Guide  |  How to Lend in Multiple States

Licensing Requirements

Florida does not require a specific lending license for private money lenders making business-purpose loans. However, companies that make or service consumer mortgage loans must be licensed as a Mortgage Lender under Florida Statutes Chapter 494. Private money lenders should ensure their loans are properly documented as business-purpose to avoid triggering licensing requirements.

Key Compliance Considerations

Florida is a judicial foreclosure state, meaning all foreclosures must go through the court system. This is the most significant operational consideration for private money lenders — foreclosure timelines in Florida are substantially longer than in non-judicial states like Texas or Arizona.

Florida has a right of redemption that allows the borrower to pay the full judgment amount and recover the property until the court clerk files the certificate of sale. This adds uncertainty to the foreclosure process.

Florida does not have a state income tax, which contributes to strong population growth and real estate demand but has no direct impact on lending compliance.

For loans under $500,000, lenders must be particularly careful about the 18% usury threshold. When origination fees, default interest, and other charges are included in the usury calculation, some loan structures can approach or exceed this limit.

Document Requirements for Florida Private Money Loans

Florida private money loans require a mortgage as the primary security instrument, along with a promissory note, loan agreement, personal guaranty (for entity borrowers), and state-specific disclosures and compliance riders. For fix-and-flip and construction loans, draw agreements, scope of work exhibits, and completion guarantees are also required.

Automate Loan Docs generates complete, Florida-specific document packages that comply with all applicable state requirements. Every template is drafted by the attorneys at Geraci LLP, whose team has over 30 years of combined experience advising private money lenders across all 50 states — including extensive experience with Florida lending transactions.