Florida is the hardest state in the country to build a spec home profitably by feel — and one of the most rewarding when you underwrite the local variables correctly. Land basis, impact and mobility fees that swing $20,000 between counties, a 175 mph wind zone in Miami-Dade, and the nation’s most expensive property insurance all move the pro forma before you pour a footing. This guide covers ground-up new construction and spec-home financing for investors and builders across Florida’s four biggest build markets — Miami, Orlando, Tampa, and Jacksonville — with the permit, fee, code, and insurance detail that generic construction guides skip.
As Florida hard money and construction lenders, Jaken Finance Group finances non-owner-occupied, business-purpose construction only. For the mechanics of draws, LTC, and as-completed value that apply in every state, see the flagship construction loan guide and the ground-up loan program for builders with no track record. This page spends its depth where Florida is genuinely different.
Why build spec in Florida in 2026
Florida’s in-migration, limited developable infill, and aging housing stock keep new-construction demand structurally strong, and buyers increasingly prefer new product for one reason above all: insurability. A resale home with a 15-year-old roof and 1990s connectors can be near-uninsurable or non-renewed; a new home to the 2023 code insures at a fraction of that premium. That gap is now a selling feature, not just a compliance line — see the Florida insurance-driven market selection guide and the Florida DSCR insurance-impact guide for how it reshapes both exits.
The catch is cost. Florida spec economics are decided by three local numbers that most spreadsheets get wrong: the county impact/mobility fee, the metro cost per square foot (driven by wind code), and the annual insurance premium the completed home will carry. Get those three right and the statewide market supports strong margins. Get them wrong and a fixed $37,000 fee load quietly erases your spread.
How ground-up spec financing works here
The capital stack for a Florida spec build is the same instrument you would use anywhere; only the inputs are local. Jaken Finance Group sizes the loan against both cost and as-completed value and funds the lower of the two.
| Parameter | Canonical value |
|---|---|
| Construction/bridge rate | 8.99%–13.5% interest-only on drawn balance |
| Term | 12–18 months IO (extensions available) |
| As-completed (LTARV) cap | Up to 75% of appraised as-completed value |
| LTC — general investor | Up to 90% of cost |
| LTC — qualified files | Up to 100% LTC on qualified files |
| LTC — repeat spec/BTR builders | 70%–80% of cost |
| LTC — first-timer / no track record | 65%–75% of cost |
| Contingency | 10%–15% of hard-cost budget |
| Draws | 5–7 draws, funded 48–72h after inspection |
| Close speed | 10–14 business days |
| DSCR permanent takeout | 5.75%–10.5% at 1.0+ DSCR, 70%–75% LTV |
We do not front-load: no more than 20% of the budget releases before the foundation inspection clears, and draws follow the standard sequence of foundation/site, framing/dry-in, mechanical rough, drywall/finish, and CO/final. Because Florida’s rainy season and hurricane-season labor disruptions can stretch schedules, we typically underwrite a longer interest reserve than a dry-climate build would need. For a deeper walk-through of how draw inspections release funds, see the fix-and-flip draw process, which uses the same third-party inspection discipline.
Two exits drive the underwriting: a sell-out to a retail buyer, or a hold financed by a DSCR permanent takeout. Builders running the build-to-rent playbook should read the spec-versus-BTR financing hub alongside this page; the permanent takeout math appears in the Orlando worked example below.
Land and lot acquisition
Most Florida spec deals start with a platted infill lot rather than raw acreage, but the financing question is the same: can you leverage the dirt before vertical begins? Lot and land positions are financed separately from the vertical build — see vacant land and raw-land financing for investors. Wooded or wetland-adjacent parcels carry Florida-specific diligence: wetland delineation, tree-removal and mitigation ordinances (which vary by city), and — on coastal lots — the flood zone and required finished-floor elevation, all of which belong in your land underwriting before you close on the dirt.
Florida’s building code and wind design
The governing code statewide is the Florida Building Code, 8th Edition (2023), effective December 31, 2023 and built on ASCE 7-22 wind loads. It applies in all 67 counties. What changes dramatically is the wind-design severity and the product-approval regime:
| Zone | Design wind speed | Product approval | Metros affected |
|---|---|---|---|
| HVHZ (High-Velocity Hurricane Zone) | 175 mph (Miami-Dade) | Miami-Dade Notice of Acceptance (NOA) required | Miami-Dade only |
| Wind-borne debris region | ~130–150 mph typical | Statewide Florida Product Approval | Coastal Tampa, Orlando exposure, Jacksonville coast |
| Inland standard | Lower design speeds | Statewide Florida Product Approval | Inland Orlando, inland Jacksonville |
Only Miami-Dade and Broward are HVHZ; of the four metros here, that means Miami alone triggers the NOA regime — impact glass, enhanced roof-to-wall connectors, and every hurricane-protection component must carry a Miami-Dade NOA, not merely statewide approval. That is the single biggest reason Miami builds sit at the top of the state’s cost-per-square-foot range. Orlando, Tampa, and Jacksonville still face wind-borne-debris protection near the coast, but not the full HVHZ product regime.
Contractor licensing — Florida DBPR / CILB
Florida licenses contractors through the Department of Business & Professional Regulation (DBPR) and its Construction Industry Licensing Board (CILB). The distinction that trips up out-of-state investors is Certified versus Registered:
- Certified — issued by the state, valid in all 67 counties, earned by passing state exams.
- Registered — local competency only, valid only in the specific city or county that granted it, then registered with DBPR.
For detached spec homes the relevant license classes are the Certified Residential Contractor (CRC) — one-, two-, and three-family homes up to two habitable stories — the Certified Building Contractor (CBC) — commercial and residential up to three stories — and the Certified General Contractor (CGC), unlimited. Licensure screens roughly four years of experience, three state exams (Business & Finance, Contract Administration, Project Management), and financial responsibility (a FICO of 660+ streamlines it; below that is allowed via surety bond and a financial-responsibility course). Verify any contractor at myfloridalicense.com before funding — we require it on every file.
Zoning, entitlements, and ADUs
Most Florida spec builds on platted infill lots proceed by-right in single-family districts, subject to local setbacks, lot coverage, height, and impervious-surface limits — there is no statewide setback standard, so verify the zoning district and dimensional table for each parcel. Two statewide dynamics are worth knowing:
- Accessory dwelling units. Florida has no statewide mandate forcing ADUs onto single-family lots; ADU rights remain a city-and-county question. Where allowed, an ADU can add rentable square footage that strengthens a DSCR takeout — but treat it as a local-code item to confirm parcel by parcel, not an assumption.
- The Live Local Act. SB 102 (2023), amended by SB 328 (2024) and SB 1730 (2025), is a statewide preemption that forces local governments to allow multifamily and mixed-use — with height, density, and FAR concessions — on commercially, industrially, and mixed-use-zoned land when at least 40% of units are affordable at 120% AMI or below for 30-plus years. It is a lever for infill build-to-rent and multifamily near commercial corridors, not for detached single-family spec, but it can unlock density on the right corridor parcel if you are building at scale.
For denser BTR plays across the four metros, the developer build-to-rent programs and single-close construction-to-perm structures are the relevant products; detached spec stays on the standard ground-up facility described above.
Permit authority and plan-review timelines
The permitting authority follows the property address, and the four metros run very different systems. Confirm jurisdiction before you underwrite a schedule.
| Metro | Authority / portal | Consolidated? | New-SFR plan review |
|---|---|---|---|
| Miami (Miami-Dade) | RER Building Division / EPS portal (municipalities self-permit) | No — many cities self-permit | ~6–12 weeks to permit |
| Orlando (Orange) | Division of Building Safety / OC FastTrack | No — Orange vs Osceola separate | ~4–8 weeks (express available) |
| Orlando (Osceola) | Osceola Building & Permits | No | Varies; add fee-load review |
| Tampa (Hillsborough) | HillsGovHub (county) / City of Tampa self-permits | No — county vs city | Varies by scope/zone |
| Jacksonville (Duval) | Planning & Development; mobility via CMMSO | Yes — one city-county authority | Single authority, mobility pre-permit |
Jacksonville’s consolidated city-county structure is the simplest of the four: one authority for essentially all of Duval, with the mobility fee assessed before permit issuance. Miami is the most fragmented — the City of Miami, Miami Beach, Coral Gables, and dozens of other municipalities run their own building departments, so a lot two blocks apart can sit under different reviewers and different freeboard rules.
Impact and mobility fees — the biggest hidden line
These government fees are among the largest hard costs in a Florida spec pro forma and vary wildly by county. Treat the fee as a fixed number you must absorb regardless of home size — which is exactly why a $37,718 Osceola fee crushes an entry-level build but is tolerable on a larger one. The table below compares verified per-single-family-home figures across the four metros.
| County (metro) | Fee type | Per-SFR amount | Source basis |
|---|---|---|---|
| Osceola (Orlando) | Mobility + school + park + fire | ≈ $37,718 total | Official rate table, eff. 5/19/2025 |
| Orange (Orlando) | Transportation + school + fire + law + parks | ≈ $24,000–$25,000 total | County At-A-Glance schedule |
| Hillsborough (Tampa) | Mobility fee only (impact fees extra) | $8,178–$14,938 by size/zone | County mobility schedule |
| Miami-Dade (Miami) | Roads + fire + police + school + parks | ≈ $16,000–$19,000 total | County impact-fee rate PDF |
| Duval (Jacksonville) | Mobility fee (calculator by zone) | Lowest of the four (directional) | Jacksonville mobility calculator |
A few load-bearing details behind those numbers:
- Osceola raised its mobility fee roughly 117% to $21,710 per home effective May 19, 2025; add $12,923 school, $2,305 park, and $780 fire and you clear $37,700 per single-family detached home. This is now among the highest fee loads in Florida.
- Orange County transportation impact fees run about $7,344–$17,088 depending on district and home size, plus school fees stepping from roughly $8,829 to $12,015 by square footage, plus ~$462 fire, ~$665 law enforcement, and ~$2,434 parks per unit.
- Hillsborough’s mobility fee is $8,178 (urban, under 1,500 sf) up to $14,938 (rural, 2,500 sf+); parks, school, and fire impact fees apply on top and must be itemized through the county calculator. Tampa (city) has separately moved to raise its fees.
- Miami-Dade’s verified per-home impact fees run roughly $9,275–$10,625 roads (by context zone), $527.55 fire, $688.42 police, $612 school plus $0.918 per gross square foot, and $3,084–$4,903 parks (by district) — about $16,000–$19,000 all-in depending on zone, district, and size.
- Jacksonville/Duval publishes a mobility-fee calculator rather than a flat table and is widely regarded as the lowest total fee load of the four; get a certified per-parcel amount rather than assuming.
Cost to build per square foot
The figures below are vertical hard cost only — they exclude land, the impact/mobility fees above, and soft costs. Wind code drives the spread: Miami’s HVHZ product requirements push it to the top.
| Metro | Vertical hard cost ($/sf) | Note |
|---|---|---|
| Miami (Miami-Dade) | Top of range (~$250–$350+) | HVHZ NOA products, impact glass, enhanced connectors |
| Tampa (Hillsborough) | ~$170–$200+ | Coastal wind-borne-debris near bay/gulf |
| Orlando (Orange/Osceola) | ~$150+ | Production builder-grade and up |
| Jacksonville (Duval) | Low-to-mid statewide range | Typically lowest of the four (qualified) |
| Statewide reference | ~$150–$350 (mid-band ~$160–$295) | Prefab/modular ~$125–$195 |
Miami and Jacksonville lack a clean single-source metro figure, so treat those as qualified ranges: Miami at the top because of HVHZ, Jacksonville at the low end because of inland exposure and cheaper land. Refresh all of these against live subcontractor bids before you lock a budget.
Florida’s four build metros
The rest of the local picture — permit authority, timelines, submarkets, and flood exposure — is metro-specific. Here is each of the four in turn.
Miami (Miami-Dade)
Miami is the only HVHZ metro of the four and the most expensive to build, but it also commands the highest as-completed values. Permits in unincorporated Miami-Dade run through the Department of Regulatory & Economic Resources (RER) Building Division and its EPS online portal; incorporated municipalities like the City of Miami, Miami Beach, and Coral Gables run their own building departments, so confirm jurisdiction by address first. First plan review runs roughly 24 hours to 10 business days by discipline, and a new single-family residence commonly takes about 6–12 weeks from submittal to permit across review cycles.
Build submarkets range from Homestead and South Dade (lowest lot basis, entry spec) through Kendall and West Dade infill, Miami Gardens teardown-rebuild, and high-value custom spec in Coral Gables and Pinecrest. For permit and code depth, cross-reference the Miami permits and building-code guide and Miami build/flip neighborhoods; for capital, Miami hard money lenders. Coastal and South Dade lots carry the heaviest flood-elevation requirements in the state — verify the FEMA zone and the municipal freeboard before you underwrite the pad.
Orlando (Orange and Osceola)
Central Florida is the state’s volume-build engine and its clearest case study in why fees matter. Orange County permits through the well-regarded OC FastTrack portal with new-SFR plan review around 4–8 weeks (express review available for a fee); Osceola County (Kissimmee, St. Cloud, Poinciana) handles its own permitting and carries that ~$37,718 fee load. Choose the county deliberately — the same house pays $13,000 more in Osceola than in Orange before you frame a wall.
Strong build submarkets include Horizon West and Lake Nona (master-planned, deep build-to-rent demand) and Winter Garden/Ocoee in Orange, and the St. Cloud/Narcoossee corridor in Osceola where higher values can absorb the fee. See Orlando build/flip neighborhoods and Orlando hard money lenders. Central Florida’s inland position means lower wind and flood exposure than the coasts — a real cost advantage — though lakefront and low-lying parcels still require elevation diligence.
Tampa (Hillsborough)
Tampa Bay pairs strong rent growth with a mobility-fee structure that scales by home size and urban-versus-rural zone ($8,178–$14,938 for the mobility portion, with parks/school/fire impact fees on top). Unincorporated Hillsborough permits through HillsGovHub; the City of Tampa runs its own department and has been moving to raise fees, so confirm which authority governs your lot. Southeast-county submarkets like Riverview, Gibsonton, and Ruskin/Sun City Center offer volume spec land, while South Tampa is premium teardown-rebuild territory.
Coastal south Hillsborough carries meaningful flood and storm-surge exposure; wind-borne-debris protection applies near the bay and gulf even though Tampa is outside the HVHZ. See Tampa build/flip neighborhoods and Tampa hard money lenders for submarket and capital detail.
Jacksonville (Duval)
Jacksonville is a consolidated city-county — one permitting authority for essentially all of Duval — with transportation handled through a mobility fee (Ordinance Ch. 655) payable before permit issuance, assessed across ten mobility zones. It is generally the lowest total government-fee load and lowest build cost of the four metros, which makes it the friendliest entry market for a first spec build. Northside and Oceanway offer the lowest lot basis in new-community volume; Westside/Cecil and Arlington provide infill; the Beaches (Atlantic, Neptune, Jacksonville Beach) are coastal-premium with real flood exposure.
Because Jacksonville publishes a calculator rather than a flat fee table, pull a certified per-parcel mobility amount during diligence. See Jacksonville build/flip neighborhoods for submarket bands.
The insurance crisis as a spec advantage
Florida homeowners premiums are the highest in the nation — roughly 2.5–3x the U.S. average, with 2025 estimates ranging widely by source from about $3,800 (including wind) to well over $6,000. Present it as a range, never a single figure, because sources disagree and premiums depend heavily on roof age, location, and mitigation. Two dynamics turn this into a spec-builder edge:
- New homes insure far better. A home built to the 2023 code with a new roof and modern connectors qualifies for the best available windstorm pricing. A $100–$150 wind-mitigation inspection can cut the windstorm portion of the premium by 20%–45% — a documented, quotable advantage over aging resale stock.
- Non-renewal risk favors new inventory. Florida leads the nation in homeowners non-renewals, which is a genuine risk for older listings sitting unsold. New product is the cleaner insurability story for a retail buyer or a DSCR-qualifying tenant occupancy.
That said, insurance also pressures your exit: on a DSCR takeout, the annual premium and property tax load directly reduce the coverage ratio, which is why we size Florida permanent takeouts conservatively at 70%–75% LTV. The Florida DSCR insurance-impact guide walks through how premium assumptions move a rental’s qualifying loan amount.
Flood, base flood elevation, and freeboard
Elevation is a per-lot underwriting item, not a metro generalization. In FEMA Zone AE, the lowest floor must sit at or above the Base Flood Elevation (BFE); most Florida jurisdictions add 1 foot of freeboard (BFE+1), and some coastal cities require 2–3 feet (Miami Beach among them). Zone VE — coastal high-velocity — requires pilings with the lowest horizontal structural member at or above BFE plus freeboard. Because freeboard is set by the local floodplain ordinance rather than the FEMA map alone, check the municipal rule for every coastal or low-lying parcel; elevation and piling requirements add materially to cost and must be underwritten per lot.
Timeline — permit to certificate of occupancy
Florida schedules are shaped by rainy season (roughly June–September), hurricane-season labor and materials disruption, and the plan-review pace of the local authority. A representative single-family spec timeline:
| Phase | Miami (HVHZ) | Orlando / Tampa / Jax |
|---|---|---|
| Site plan, survey, permit review | 8–14 weeks | 5–10 weeks |
| Foundation / slab / site | 3–5 weeks | 3–4 weeks |
| Framing / dry-in (NOA products in Miami) | 6–9 weeks | 5–7 weeks |
| Mechanical rough, drywall, finish | 10–14 weeks | 9–12 weeks |
| Final inspections / CO | 2–4 weeks | 2–3 weeks |
| Approximate total | ~10–13 months | ~8–11 months |
Because these timelines run long relative to a dry-climate build, we size the interest reserve accordingly and set the IO term at 12–18 months rather than crowding a Florida build into a 12-month box. Weather float and hurricane-season contingency belong in the schedule, not in a change-order surprise.
Worked example 1 — Miami HVHZ coastal spec (sell-out exit)
A repeat builder acquires a Kendall/West Dade infill lot and builds a 2,400 sf HVHZ spec home to sell.
| Line item | Amount |
|---|---|
| Land (infill lot) | $220,000 |
| Vertical hard cost (2,400 sf × ~$290/sf, HVHZ) | $696,000 |
| Miami-Dade impact fees (SFR, all-in) | $17,500 |
| Soft costs (A&E, permits, survey, builder’s-risk insurance, legal) | $55,000 |
| Contingency (12% of hard cost) | $83,500 |
| Total project cost (TPC) | $1,072,000 |
The as-completed appraisal supports $1,375,000 for a new HVHZ home in the submarket. Sizing the loan: LTC at 75% (repeat-builder band) is $804,000; LTARV at 75% of $1,375,000 is $1,031,250. We fund the lower — $804,000 — leaving about $268,000 of builder equity in the deal.
Carry: at an 11% interest-only rate on an average drawn balance near $482,000 over an ~11-month build, interest runs roughly $49,000 from the reserve. At sell-out, an 8% cost of sale on $1,375,000 is $110,000. The result:
- Gross sale: $1,375,000
- Less 8% sale costs: −$110,000
- Less total project cost: −$1,072,000
- Less financing interest: −$49,000
- Net profit ≈ $144,000 (roughly a 53% return on the ~$268,000 of equity over ~13 months)
The insurance story sharpens the exit: because the home is new HVHZ product with a wind-mitigation certificate, the buyer’s windstorm premium prices at the low end of the Florida range rather than the punishing resale end — a tangible absorption advantage when comparable resale listings are being non-renewed.
Worked example 2 — Orlando build-to-rent (DSCR takeout exit)
A builder develops a 2,000 sf home in Horizon West (Orange County) to hold as a rental, taking out the construction loan with a DSCR permanent loan rather than selling.
| Line item | Amount |
|---|---|
| Land | $130,000 |
| Vertical hard cost (2,000 sf × ~$165/sf) | $330,000 |
| Orange County impact fees (all-in) | $24,500 |
| Soft costs | $30,000 |
| Contingency (10% of hard cost) | $33,000 |
| Total project cost (TPC) | $547,500 |
As-completed appraisal: $650,000. Construction sizing: LTC at 75% is $410,600; LTARV at 75% of $650,000 is $487,500 — we fund the lower, $410,600, against roughly $137,000 of builder equity. IO carry at 11% on an average drawn balance near $247,000 over 12 months runs about $27,000 from the reserve.
At completion the home rents for about $3,350/month ($40,200/year). The DSCR takeout at 70% LTV is $455,000 at, say, 7.25% over 30 years — a P&I payment near $3,104/month, for a debt-service coverage ratio of about 1.08 (above the 1.0 floor). That $455,000 permanent loan retires the ~$438,000 construction payoff (principal plus interest) and leaves the builder holding a cash-flowing rental with roughly $195,000 of equity. Note the Florida-specific tension: property tax and insurance are what compress PITIA coverage here, which is exactly why the takeout is sized at 70% LTV rather than stretched. Had this been built in Osceola instead of Orange, the extra ~$13,000 of fees would have to be recovered in either a higher appraised value or thinner equity — the fee decision is the deal decision. See Florida DSCR loans for permanent-financing terms.
Choosing your exit
| Exit | Best when | Financing |
|---|---|---|
| Sell-out | Strong retail demand, appreciation submarket, HVHZ premium product | Construction loan repaid from sale, 8% cost of sale |
| DSCR hold (BTR) | Rent supports 1.0+ DSCR, builder wants long-term equity | 5.75%–10.5% permanent takeout, 70%–75% LTV |
| Bridge-to-sell | Finished but unsold inventory needs runway | Term extension on the IO construction facility |
Florida’s insurance and fee structure pushes many builders toward higher-value sell-out product in HVHZ and coastal-premium submarkets, and toward build-to-rent in Central Florida’s master-planned corridors where rent growth is strong. Whichever you choose, model the completed home’s insurance premium before you commit — it moves both the buyer’s affordability and the rental’s coverage ratio.
Common mistakes on Florida spec builds
| Mistake | Consequence | Fix |
|---|---|---|
| Treating impact fees as variable | A fixed $37,718 Osceola fee sinks entry-level margin | Choose county deliberately; size home to absorb the fee |
| Assuming statewide $/sf in Miami | HVHZ NOA products blow the budget | Bid Miami at the top of the range |
| Ignoring freeboard on coastal lots | Costly redesign after plan review | Check municipal floodplain ordinance, not just FEMA map |
| Underwriting resale insurance to a new build | Overstated carry, understated exit advantage | Model wind-mit premium reduction of 20%–45% |
| Using a registered contractor out of jurisdiction | License invalid outside granted county | Verify Certified status at myfloridalicense.com |
How Jaken Finance Group structures Florida construction draws
We align draws to inspection milestones on the standard 5–7 draw schedule: no more than 20% of budget before the foundation inspection clears, then framing/dry-in, mechanical rough, drywall/finish, and CO/final, each funded 48–72 hours after a third-party inspection. On Florida files we typically underwrite a longer interest reserve than a dry-climate build would need, because rainy-season and hurricane-season disruptions extend schedules. Files with clean permits, a Certified GC, and a supported as-completed appraisal close in 10–14 business days. To scope terms, submit a scenario or start a new construction application.
Official resources
Disclaimer: Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. Closing times are in business days and commence upon receipt of appraisal payment and satisfaction of borrower conditions. All loans are subject to full underwriting for loan approvals. Jaken Finance Group only finances non-owner occupied investment properties.
Related: Florida hard money lenders · Florida market report · Vacant land loans · Ground-up construction guide
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