Usury in Florida Mortgage Lending
FL mortgage usury (Section 687.02): 18% max (total cost including fees). Private lenders: most at risk (hard money: 10-15% + 2-5 points = near threshold). Short-term: higher effective rate. Exemptions: corporate borrower (Section 687.11: LLCs exempt), institutional (federal preemption), and purchase money. Avoidance: entity borrower, savings clause, calculate total cost, spread fees, and legal review. Example: 12-month, 12% + 5 points = ~17% (near limit). Always assume challenge.
Mortgage Application
- 18% total cost (Section 687.02)
- Includes fees and points
Private Lending Risk
- Hard money: near threshold
- Short-term: higher effective rate
- Hidden fees = interest
Avoidance
- Entity borrower (exempt)
- Savings clause, fee analysis
- Legal review before closing
Related Terms
- Usury — Overview
Barnes Walker Real Estate
Barnes Walker’s attorneys handle FL mortgage usury. Request a legal inquiry for assistance.
Florida Law Reference
Fla. Stat. Ch. 697
Defines mortgages as liens on real property and establishes requirements for mortgage creation, assignment, and satisfaction in Florida.
Fla. Stat. Ch. 687
Limits the maximum interest rate that may be charged on loans in Florida. The general usury limit is 18% for loans under $500,000 and 25% for loans of $500,000 or more.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC