A Florida cash-out refinance replaces your mortgage with a larger one and pays you the difference. Florida has no special state limit, so program rules apply: homeowners commonly borrow up to 80% of the home's value, and rental investors commonly up to 75%. Expect Florida's doc stamp and intangible taxes in closing costs, and budget for insurance — it affects how much you qualify for.
Homeowner vs. rental investor at a glance
| Item | Primary home | Rental / vacation rental |
|---|---|---|
| Typical max loan-to-value | Up to 80% (conventional/FHA); VA may go higher | Commonly up to 75% |
| How you qualify | Income, credit, debt-to-income | Income or the property's rent (DSCR) |
| Tax returns needed | Usually; bank statements for self-employed | Not on DSCR |
| Close in an LLC | No | Often yes on DSCR |
| Right to cancel | 3 business days after signing | Generally none |
| Seasoning | Commonly 6–12 months of ownership | Varies; some DSCR programs shorter |
Limits vary by program, property type and credit, and are subject to underwriting.
For Florida homeowners
Common uses: paying off high-interest debt, renovations and roof replacements, hurricane hardening, pools, tuition, or a down payment on a rental. Before you refinance, compare your current rate to today's rate. If your first mortgage carries a low rate, a HELOC may let you access equity while keeping that rate. Self-employed? A bank statement program can qualify you on deposits instead of tax returns.
For Florida rental and vacation-rental investors
A DSCR cash-out refinance qualifies on the property's rent rather than your personal income — no tax returns or W-2s on most programs, and title can often stay in your LLC. Investors commonly use it to pull equity from an appreciated rental in Destin, 30A, Panama City Beach, Orlando or Tampa and fund the next purchase.
Watch the expense side: Florida insurance, flood coverage, HOA dues and property taxes all count in the ratio. A higher loan amount from cash-out raises the payment too, so run the numbers first with the DSCR calculator.
Florida-specific closing costs
- Documentary stamp tax on the note — generally $0.35 per $100 of the new loan.
- Nonrecurring intangible tax — generally 0.2% of the new mortgage.
- Insurance escrow — Florida premiums can make the escrow deposit larger than in other states.
- Plus standard costs: appraisal, title, recording and lender fees. Overall, budget roughly 2–5% of the loan.
Worked examples
Illustrative only — your amount depends on appraisal, costs and approval.
| Scenario | Value | Owed | Max loan | Cash before costs |
|---|---|---|---|---|
| Primary home at 80% | $400,000 | $220,000 | $320,000 | $100,000 |
| Rental at 75% | $500,000 | $250,000 | $375,000 | $125,000 |
| Vacation rental at 75% | $800,000 | $450,000 | $600,000 | $150,000 |
Step-by-step timeline
- Scenario review — value, balance, goal and the right program.
- Application and documents — income docs, or a lease/rent estimate for DSCR.
- Appraisal and insurance quote — these set your loan amount and payment.
- Closing — commonly 30–45 days from application.
- Funding — primary homes fund after the 3-day cancel window; rentals generally fund at closing.
Frequently asked
How much can I take out with a cash-out refinance in Florida?
Florida has no special state cap like Texas. Limits come from the loan program: conventional cash-out on a primary home is commonly up to 80% of appraised value, FHA commonly up to 80%, and VA may allow higher for eligible veterans. Rental properties are commonly up to 75% depending on the program.
Can I do a cash-out refinance on a Florida rental or vacation rental?
Yes. Investors can use conventional investment cash-out or a DSCR cash-out refinance, which qualifies on the property's rent instead of tax returns. Some DSCR programs consider short-term rental income, subject to program guidelines.
What taxes apply to a Florida cash-out refinance?
Florida charges documentary stamp tax on the new note (generally $0.35 per $100) and nonrecurring intangible tax on the new mortgage (generally 0.2%). On a refinance, credits may apply for the existing balance in some cases. Your Loan Estimate shows the exact amounts.
How long does a Florida cash-out refinance take?
Most close in about 30 to 45 days. Primary-home refinances include a 3-business-day right to cancel after signing before funds are released; investment-property loans generally do not.
Does homeowners insurance affect a Florida cash-out refinance?
Yes. Florida insurance and flood premiums can be significant, and they count in your monthly payment for qualifying. On DSCR loans they directly affect the rent-to-payment ratio, so get a current quote early.
Is cash-out refinance money taxable?
Cash-out proceeds are loan proceeds, not income. Whether interest is deductible depends on how funds are used — this is not tax advice; confirm with your CPA.
Related Florida guides
Educational content only — not a commitment to lend or an offer of credit. Loan terms, LTV limits, taxes and program guidelines are subject to underwriting approval and change without notice. Not tax or legal advice.