Hard Money Loans in Miami, FL: What the City of Miami Adds to Your Deal

Short answer

Investors may qualify for a hard money loan on a City of Miami investment property based mainly on the property's value and the exit plan, usually a sale or a refinance into a DSCR loan. These are business-purpose loans only, never for a home you will live in. In Miami, check three things before you sign: open unsafe-structure cases, the building's recertification status, and whether City of Miami zoning even allows the short-term rental income your exit depends on.

What Miami's Q3 2026 numbers mean for a short-term loan

How hard money works statewide, Florida's usury limits and the standard document list are in our Florida hard money guide. This page covers what changes inside the City of Miami (folio numbers that start with 01).

As of October 2026, the latest Florida Realtors city data for Q3 2026, published by MIAMI REALTORS, shows two different markets:

• Single-family houses: 270 sales at a median of $815,070, up 5.9% from a year earlier. Median time to contract was 45 days and supply was 6.1 months. 108 sales, about 40%, were cash.
• Townhouses and condos: 582 sales at a median of $555,000, down 4.3%. Median time to contract was 94 days and supply was 16.8 months. 313 sales, about 54%, were cash.
• Miami-Dade overall: houses at $685,000 with 5.1 months of supply; condos at $409,500 with 12.3 months.

On a loan that runs months, not years, time to sell is a cost. A house that goes under contract in about 45 days fits a short term. A condo with almost 17 months of supply in the city may not, so lenders size condo deals more cautiously and you should plan a longer term or an extension option.

Unsafe-structure cases: check before you buy

Distressed Miami properties are exactly what hard money buys, and some come with an open City of Miami unsafe-structure case. The city issues that violation when a building is deemed unsafe or a hazard. Its listed causes include a vacant, open or abandoned structure, debris that creates a fire hazard, entrance or exit hazards, signs of structural stress and disconnected water service, plus conditions in Chapter 8 of the Miami-Dade County Code. As of October 2026, the process the city describes:

• Secure the property first. That can mean boarding it with minimum 1/2" plywood, securing floors, roof openings and fences, and keeping it clean. Securing only starts the process.
• Repair if feasible. Hire a design professional, pull permits, finish the work and pass inspections within the city's timeline. One extension may be granted if the request has merit.
• Demolition if beyond repair. If the Building Official finds the structure over 50% damaged or beyond repair, it must be demolished, and noncompliance goes to the Unsafe Structures panel hearing.
• Liens get paid before the case closes. The city invoices the lien payoff within five business days of your request.

Why it matters for your loan: the lender's title search may show the lien, and draws for repairs will not flow until permits are issued. Call the Unsafe Structures section at 305-416-1177 before you go under contract, and build securing, design and permit time into your loan term.

Recertification: the '40-year' rule now starts at 30

Many Miami investors still call it the 40-year recertification. Under Miami-Dade's current rules, which the City of Miami follows, as of October 2026:

• Buildings built in 1993 or later recertify at 30 years, then every 10 years for the life of the structure.
• Condo and co-op buildings of three stories or more within three miles of the coastline built in 1998 or later recertify at 25 years, then every 10.
• Single-family homes, duplexes, and buildings of 2,000 sq ft or less with an occupant load of 10 or less are exempt.
• An architect or engineer inspects and submits the report. The city allows one extension, requested before the due date, with a $500 fee. Submitting the report before starting repairs gives you 60 days to get repair permits without a violation.

For condo and co-op buildings of three or more habitable stories, Florida's milestone inspection law (s. 553.899) adds its own clock: by December 31 of the year the building turns 30, then every 10 years, and phase two repairs must start within 365 days of the report.

What this means for a hard money deal: a small apartment building, mixed-use property or condo unit with an overdue recertification or unfinished repairs can stall your exit. Condo repairs often show up as a special assessment. Ask the seller or association for the recertification letter and any open permits before you close.

Short-term rental rules in the City of Miami

If your exit is a refinance based on Airbnb-style income, confirm it is legal first. As of October 2026, the City of Miami treats a rental of less than 30 days as a lodging use under Miami 21, allowed only in the transect zones listed in Article 4, Table 3, and only if the structure has a Building Certificate.

• Houses in single-family zones are out. The city's procedures page says single-family homes and duplexes in T3 and T4-R zones are not eligible.
• Converting is a permit job. Owners apply for a building permit in iBuild as a commercial remodel for lodging units, with an Operational Management Plan signed by the condo or HOA association and, for existing buildings, an STR Evaluation Form certified by the association.
• More licenses follow. A new Certificate of Occupancy, a Florida DBPR lodging license, a new Certificate of Use for lodging units and a Business Tax Receipt. The Certificate of Use renews every year or is revoked.
• The 25% line. If more than 25% of a building's units are used as transient lodging, the entire building must meet R-1 standards.

Different rules apply outside the city. Miami Beach and unincorporated Miami-Dade have their own programs; see our Miami DSCR investor guide for the county rules. If short-term rental is not allowed, underwrite the refinance on a 12-month lease instead.

The usual exit: refinance into a DSCR loan

Most buy-and-hold investors use hard money to buy and fix, then refinance into a DSCR loan that is sized on rent instead of personal income. To make that refinance work in Miami, plan for it on day one:

• Rent has to cover the full payment, including property tax, insurance and any HOA dues. Run the ratio with a conservative rent before you buy. See what DSCR is.
• Taxes reset on an investment property. No homestead exemption. The 2026 adopted total millage for a City of Miami address is 19.9544 mills, about 2.0% of taxable value, as of October 2026. Non-homestead property gets a 10% yearly cap on assessment increases, excluding school taxes, but the cap resets after a change of ownership.
• Seasoning. Many lenders limit how soon they will use the new appraised value instead of your purchase price plus documented rehab. Ask before you buy. See what seasoning is.

Example only: closing and holding costs on a Miami house

Example only, not a quote. An investor buys a single-family house in the City of Miami for $600,000 with a $450,000 hard money loan. Florida taxes as of October 2026:

• Note stamps: $0.35 per $100 of the loan = $1,575.
• Intangible tax: 2 mills on the loan = $900.
• Deed stamps in Miami-Dade: $0.60 per $100 = $3,600 if the buyer pays them under the contract. The extra surtax of up to $0.45 does not apply to a deed for a single-family residence. See doc stamp tax.
• Property tax: at 19.9544 mills on a $600,000 taxable value, about $11,973 a year, roughly $998 a month while you hold.

Add lender points, title, insurance (vacant or builder's risk), utilities and interest. Rates vary daily; call 305-425-1990 for today's pricing.

Hard money is a business-purpose loan. Under the CFPB's Regulation Z commentary, a property is not non-owner-occupied if the owner expects to live there more than 14 days in the coming year. To buy a Miami home to live in, see our Miami mortgage broker page. Planning a heavy rehab? See fix and flip loans in Miami. QMS Lending (NMLS #1781090), an independent broker in Miami, FL, compares private lenders' leverage, points, draw rules and extension costs side by side, in English or Spanish. Subject to credit and property approval.