Florida Apartment Loans

Florida: In the Spotlight

Florida is the 3rd most populous state in the country, home to roughly 21.6 million people. The Sunshine State is also home to cities like Jacksonville, which is the most populous city in the state with more than 900,000 residents in the city proper and millions in the greater metro area. Miami-Dade County offers the largest population by county, with more than 2 million people calling the county and greater Miami region home.

Florida is 18.5% water, which surprises some, who expect it to be much higher because of all of the lakes and swamps.
Publix is the largest employer in Florida, with over 191,000 employees.
Aviation and aerospace are among the state's major industries, employing over 87,000 workers at more than 2,000 companies and government facilities across the state.
The average household income is $55,462.
The average age in Florida is 42 years old.
Florida has 9.5 million employees across the state.
The homeownership rate is just under 66%, which leaves 34% of the residents looking for apartments and rental properties.

How Lenders Underwrite Apartments in Florida

In Florida, insurance and property tax resets often move loan proceeds more than rents do. Lenders start from a current insurance quote, not last year's premium.

Wind: Agency lenders cap deductibles. Fannie Mae's maximum named-storm deductible is 7.5% of total insurable value. HUD's wind and named-storm maximum is the greater of $50,000 or 5% of insurable value, up to $475,000 per occurrence. A policy outside those limits has to be restructured to fit.
Flood: Buildings in a FEMA Special Flood Hazard Area need flood insurance. NFIP coverage for a residential building with five or more units tops out at $500,000 per building, and Fannie Mae requires excess flood coverage above the NFIP policy when more is required.
Taxes: For non-school taxes, annual increases in the assessed value of non-homestead property, including apartments, are capped at 10%. The assessment resets to just value on January 1 after a sale or a cumulative transfer of more than 50% of the owning entity, so lenders re-underwrite taxes on the purchase price.

The Live Local Act (2023) bars cities and counties from adopting rent control. It also offers a property tax exemption for new developments with more than 70 affordable units: 100% for units rented to households at or below 80% of area median income and 75% for units at 80% to 120%, subject to Florida Housing Finance Corporation rent limits. Some local governments have opted out of the 80% to 120% tier, so lenders confirm the exemption with the property appraiser before counting the tax savings in NOI.

The milestone inspection law (2022) applies to condominium and cooperative buildings three or more stories tall, not to buildings held as rentals in single ownership. It matters for condo deconversions and buildings where some units are still condominiums.

Insurance-heavy deals still fit Fannie Mae, Freddie Mac, and HUD programs when coverage meets their terms. Price apartment complex insurance early and test the result in the DSCR calculator.

Florida Apartment Loan and Lending Options

In the state of Florida, there are several different ways that you can finance your new apartment investment, whether you’re looking for a massive multi-unit tower in Miami Beach or a simple eight-unit property in an up-and-coming neighborhood of St. Pete. We work with opportunities like:

Finance Your Florida Apartment Building Now

The team at Apartment.loans specializes in commercial financing for all kinds of real estate and apartments in Florida and throughout the United States. We have solutions for commercial real estate, traditional apartment financing, value-add opportunities, and more. We can even help you with ground-up developments or just get you financed for a stabilized property so you can be on your way.

Our team of experts knows what it takes to get the loan funds that you need. Whether you’ve got a special investment in mind, or you have basic funding needs, let us know how we can help. We'll give you all of the tools and resources you need to take your Florida apartment loans to the next level.

Our apartment loan brokerage and lending strengths are available in markets throughout the state, with a particularly strong presence in Miami, Fort Lauderdale, Tampa, and Orlando.

To learn more and start your apartment investment journey, contact our Florida Apartment Lending Specialists at desk@janover.co or (561) 556-9997.