Question 1

Florida has no income tax. Does that change what I can document?

Accepted Answer

It removes a document other states let you fall back on. Florida Constitution Article VII section 5(a) bars a state tax on the income of natural persons, so there is no Florida personal return to corroborate an income story, and no state wage file behind it. That is a genuine benefit on the returns side, and it is durable in a way most tax breaks are not, since changing it takes a constitutional amendment rather than a session. It also means that when a Florida self-employed borrower's federal return understates the business, deposits are the cleanest evidence available. That is the whole design of this program. Bring 12 or 24 months of business or personal statements and let the deposits speak.

Question 2

What about my Florida LLC or corporation at tax time?

Accepted Answer

The entity choice decides whether Florida taxes it at all. Florida's corporate income and franchise tax is 5.5 percent for tax years beginning on or after January 1, 2022, after a $50,000 exemption. An LLC taxed as a partnership or a disregarded entity, which is the standard investor vehicle, is not itself subject to it. An LLC that elects corporate treatment is, and a corporate member of a partnership reports its share. That distinction matters here because the entity you use is also the entity whose statements we read. Note that we could not verify the Florida LLC annual report fee from a reliable source, so we will not quote one. Confirm all of this with your Florida CPA before you choose the structure.

Question 3

Should I title a Florida investment property in my own name?

Accepted Answer

No, and Florida law is the reason rather than general asset-protection advice. Section 494.001(25) has three limbs and only the first is a purpose test. Limb (b) reaches a loan on commercial real property if the borrower is an individual or the lender is a noninstitutional investor, and limb (c) reaches five-plus-unit property the same way. Neither asks what the money is for, so business purpose alone does not settle the question the way it does in Texas or North Carolina. Section 494.0025(4)(d) also makes it a prohibited practice to misrepresent a residential mortgage loan as a business purpose loan, which is why occupancy and intended-use documentation carry real weight on a Florida file. Our licensing is handled. Your instruction is short: title the deal in an entity and have your attorney confirm the structure.

Question 4

What Florida closing costs should I plan for?

Accepted Answer

Deed stamps at 0.7 percent and a loan tax at 0.55 percent, both due at recording. Section 201.02(1)(a) charges 70 cents per $100 of consideration on the deed, statewide except Miami-Dade. On the loan, mortgage stamps at 35 cents per $100 under section 201.08 and the nonrecurring intangible tax at 2 mills under section 199.133 stack to 0.55 percent, uncapped. The $2,450 cap you may have read about sits in section 201.08(1)(a) and covers notes, not recorded mortgages. On a $400,000 purchase with a $320,000 loan that is $2,800 and $1,760 (400,000 x 0.7% = 2,800; 320,000 x 0.55% = 1,760). Recording fees are trivial beside it, at $5.00 for the first page under section 28.24(13). Budget the tax as a real line.

Question 5

How do I model the Florida tax and insurance carry on a held property?

Accepted Answer

Assume the tax bill resets and the insurance quote is not the seller's. The reassessment cap in section 193.1554 resets on any sale or transfer of legal or beneficial title, so the first full year after you buy is assessed at just value and the seller's bill understates yours. The cap that follows is 10 percent a year and, per sections 193.1554(3) and 193.1555(3), it does not cover school district levies, which are usually the largest line. On the insurance side, a new Citizens policy is ineligible if a private insurer offers coverage not more than 20 percent above the Citizens premium, so the residual market is a fallback with a moving ceiling. Insurance pricing varies sharply by metro; see Tampa or West Palm Beach. Get bound quotes on the address.

Question 6

What credit score do I need for a Florida bank statement loan?

Accepted Answer

Credit starts at 640 on this program. That is a real floor, because a bank statement loan is priced off the borrower as well as the property. There is no hard credit pull to start a Florida file. Documentation is the flexible part: we work from bank statements or, in some structures, no income documentation at all, which is the point of the program for a self-employed Florida borrower. Subject to underwriting.

Question 7

How much do I need to put down on a Florida bank statement loan?

Accepted Answer

From 20 percent. On a $500,000 Florida property that is $100,000 from you and $400,000 from us (500,000 x 20% = 100,000). Loan size runs $100,000 to $3,000,000. Add the Florida closing taxes on top of the down payment: 0.7 percent deed stamps and 0.55 percent on the loan, which on that $400,000 loan is $2,200 (400,000 x 0.55% = 2,200). Subject to underwriting.

Question 8

Is there a minimum loan size in Florida?

Accepted Answer

$100,000 is the floor and $3,000,000 is the ceiling. Below the floor the fixed cost of a Florida closing, including the deed and mortgage taxes, eats too much of the deal for both of us. There is a second Florida reason the small end is awkward: the state usury ceiling steps from 18 percent at or below $500,000 to 25 percent above it, and points count toward that computation. Subject to underwriting.

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