Investor Guide
How to Choose a Hard Money Lender in Jacksonville
Choosing the wrong hard money lender in Jacksonville can cost you a deal — or worse, your earnest money. This guide walks through exactly what to look for, what to avoid, and how to compare term sheets so you fund your next Northeast Florida flip, BRRRR, or bridge deal with confidence.
The 6 Criteria That Actually Matter
- Local Florida experience. Lenders who close in Duval, St. Johns, Clay, and Nassau counties weekly already know your title agents, insurance requirements, and ARV comps. That alone shaves days off your close.
- Transparent pricing. Rate, points, and every junk fee should be in writing on the term sheet — not "we'll figure it out at closing."
- Realistic LTV / ARV limits. Most legitimate Jacksonville programs cap at 90% LTC and 70–75% ARV. A lender promising 100% financing on a first deal is almost always a broker, not a funder.
- Fast draw schedule. On rehab deals, your draws should fund in 24–72 hours after inspection. Slow draws kill flips.
- Verifiable closing track record. Ask for the last three Jacksonville-area HUD/CD statements (redacted). Real lenders share these.
- Clean loan documents. Read the default, extension, and prepayment language. Surprises here are where investors lose money.
What Are Normal Rates & Points in 2026?
In the current Jacksonville market, hard money deals typically price as follows. Use this as a sanity check when reviewing any term sheet:
| Borrower | Rate | Points | Max LTC |
|---|---|---|---|
| First-time flipper | 11–12% | 2.5–3.0 | 80% |
| 3–5 flips completed | 10–11% | 2.0–2.5 | 85% |
| 10+ flips, strong credit | 9–10% | 1.5–2.0 | 90% |
Red Flags to Walk Away From
- Any upfront fee before you receive a written term sheet.
- Pressure to wire earnest money directly to the lender (it goes to title, period).
- Vague or missing line items: "processing," "doc prep," "admin" with no dollar amount.
- No proof of funds or no example HUD/CD from a recent Florida closing.
- Lender entity not findable on Florida Sunbiz.
- Promises of 100% financing with no skin in the game on your first deal.
How to Compare Two Term Sheets
Don't compare interest rates — compare total cost of capital over your actual hold period. For a typical 6-month Jacksonville flip on a $250,000 loan:
| Cost | Lender A (10%, 2 pts) | Lender B (9%, 3 pts + fees) |
|---|---|---|
| Interest (6 mo) | $12,500 | $11,250 |
| Points | $5,000 | $7,500 |
| Junk fees | $500 | $3,000 |
| Total | $18,000 | $21,750 |
The "lower rate" lender costs $3,750 more. Always run the math on total cost for your actual project timeline.
10 Questions to Ask Before Signing
- Are you funding this loan directly, or brokering it?
- What is the all-in cost — rate, points, and every fee in writing?
- How fast do draws fund after inspection?
- What's your average time to close in Duval / St. Johns County?
- What's the extension fee and default rate?
- Is there a prepayment penalty?
- Do you require an appraisal, BPO, or in-house valuation?
- What insurance limits and endorsements do you require?
- Can I close in my LLC?
- Can I see a recent Florida HUD/CD from a similar deal?
FAQs: Choosing a Jacksonville Hard Money Lender
What should I look for in a Jacksonville hard money lender?+
Focus on six things: local Florida experience, transparent pricing (rate, points, junk fees), realistic LTV/ARV limits, draw schedule speed, time-to-close track record, and clear loan documents. A good lender will quote terms in writing and walk you through every fee before you sign.
What rates and points are normal for hard money in Jacksonville?+
Most Jacksonville hard money loans price between 9–12% interest with 1.5–3 origination points for experienced investors. First-time flippers usually see the higher end. If a lender quotes far below market, expect hidden fees or a bait-and-switch at closing.
How fast should a hard money lender close in Duval or St. Johns County?+
A real Jacksonville-area lender should close a clean deal in 7–14 business days. Anything beyond 21 days usually means the lender is brokering your file out, not funding it themselves.
Should I use a local Jacksonville lender or a national one?+
Both can work. Local lenders know Florida title, insurance, and Northeast Florida ARVs better, which speeds up closings. National lenders sometimes offer lower rates but slower service. The right answer depends on the deal — we match you to whichever fits best.
What are common red flags with hard money lenders?+
Upfront fees before a term sheet, vague answers about points and junk fees, no proof of funds, pressure to wire earnest money to the lender, and missing state licensing on commercial files. A legitimate Florida lender will never ask for money before issuing a written term sheet.
How do I compare two lender term sheets?+
Compare total cost over the actual hold period, not just the interest rate. Add points, origination, processing, underwriting, doc prep, draw fees, and extension fees. A 10% loan with 2 points and no junk fees often beats a 9% loan with 3 points and $3,000 in add-ons.
Do I need a licensed lender in Florida?+
For business-purpose loans on non-owner-occupied investment property, Florida does not require a mortgage license. However, reputable lenders still operate as registered entities with clear company info and verifiable funding history. Always confirm the entity exists on Sunbiz.
Skip the vetting — get matched with a proven Jacksonville lender
We pre-screen every lending partner against the criteria in this guide. Tell us about your deal and we'll connect you — free, no obligation.
Request a Quote