Blog · 2026-10-29

Construction Loan Requirements in Florida

Illustration: a building lot with a Florida coastline with palm trees and dunes, survey stakes marking the house pad, a septic test pit, and a permit board on a post.

Last updated: October 29, 2026. State rules checked against the primary sources listed at the end of this guide.

To build with a construction loan in Florida, you generally need a contractor licensed by the state, a building permit under the Florida Building Code, a recorded Notice of Commencement before the first inspection, a septic permit if there's no sewer, coastal permits for many beachfront lots, and a flood-zone check. Your lender adds its own credit, appraisal, and draw requirements.

Here's what each step looks like in Florida, with links to the state sources.

Key takeaways

Builder: state contractor license; owner-builder disclosure for your own home.
Code: Florida Building Code, 8th Edition (2023).
Site: DEP onsite sewage permit; CCCL permit on many beachfront lots.
Liens: Notice of Commencement before first inspection; claims within ninety days.
Closing: title agents or attorneys; documentary stamp and intangible taxes.

What are the requirements at a glance?

Requirement	Florida rule	Where to check
Contractor license	Construction Industry Licensing Board	Florida DBPR
Owner-builder	Disclosure statement; one-year sale presumption	Local building department
Building code	Florida Building Code, 8th Edition (2023)	County or city building department
Notice of Commencement	Recorded before the first inspection	Clerk of court
Septic	DEP onsite sewage program	Florida DEP
Coastal lots	CCCL permit seaward of the control line	Florida DEP
Construction liens	Claim within ninety days; Notice to Owner	Clerk of court
Closing taxes	Documentary stamp and intangible taxes	Your title agent or attorney

What do lenders require for a construction loan?

Most construction lenders look for:

A credit, income, and asset review, much like a regular mortgage
Enough equity, from cash, land you own, or both. See how land equity works.
An approved builder with a license or registration, insurance, and references. See builder approval.
Plans, specifications, and a line-item budget, often with a contingency line
An "as completed" appraisal of the lot and finished home together
Title work, a survey, and insurance, including builder's risk during construction
Reserves for cost overruns, depending on the lender

Requirements vary by lender and loan program. FHA, VA, USDA, and conventional loans each have their own rules.

Does my builder need a license in Florida?

Yes. Florida contractors are licensed by the Construction Industry Licensing Board (Florida DBPR, construction industry). Check the license type and status before you sign. See how builder approval works.

Florida lets owners act as their own contractor for a home they will live in, after signing a state disclosure statement. If the owner sells or leases the home within one year after completion, the law presumes it was built for sale or lease (Fla. Stat. § 489.103). Many lenders still won't finance an owner-builder. Read more about owner-builder construction loans.

Which building code applies in Florida?

The Florida Building Code applies statewide. The 8th Edition (2023) took effect December 31, 2023, and the Florida Building Commission is working on the next edition (Florida Building Commission). Your county or city building department issues permits and inspects.

Do I need a septic permit in Florida?

If there's no sewer, yes. Onsite sewage treatment and disposal systems are permitted under the Florida Department of Environmental Protection's onsite sewage program (Florida DEP, onsite sewage). Lenders usually want the permit before the first draw.

What about the coast and flood zones in Florida?

Check your lot on the FEMA Flood Map Service Center. If the home sits in a high-risk flood area, the lender will generally require flood insurance. Beachfront lots seaward of the Coastal Construction Control Line need a DEP permit in addition to local permits (Florida DEP, Coastal Construction Control Line).

How are construction loan closings handled in Florida?

Florida closings may be handled by title agents or attorneys. Documentary stamp tax applies to deeds and to notes and mortgages (Florida DOR, documentary stamp tax), and nonrecurring intangible tax applies to mortgages (Florida DOR, nonrecurring intangible tax). Both are paid when the documents are recorded.

How do construction liens work in Florida?

Florida's construction lien process starts with a Notice of Commencement, which must be recorded before the first inspection (Fla. Stat. § 713.13; permit warnings in § 713.135). Subcontractors and suppliers who don't contract with you serve a Notice to Owner (§ 713.06), and a claim of lien must be recorded within ninety days after the claimant's final work or materials (§ 713.08). A lien generally lasts one year unless a lawsuit is filed (§ 713.20). Lenders collect lien releases as each draw is paid.

Are there state homebuyer programs for building in Florida?

Florida Housing Finance Corporation offers homebuyer programs through participating lenders (Florida Housing). Ask whether a program can be used with new construction before you plan around one.

How do I check that a lender is licensed in Florida?

Search the lender and loan officer on NMLS Consumer Access. Florida's Office of Financial Regulation licenses mortgage lenders, brokers, and loan originators (Florida OFR).

What are the steps to build in Florida?

Confirm the lot can be built on: access, zoning, flood zone, and septic or sewer.
Choose a qualified builder and get plans, specs, and a line-item budget.
Compare lenders and get a Loan Estimate for your project.
Apply. The lender reviews you, your builder, and the plans, and orders an appraisal.
Get the septic permit (if needed), any CCCL permit, and the building permit, then record the Notice of Commencement before the first inspection.
Close with your title agent or attorney and record the deed and mortgage with the county clerk.
Build. The lender pays the builder in draws after inspections. You pay interest on the money drawn so far.
Pass the final inspection and get a certificate of occupancy.
The loan converts to your permanent mortgage. See what happens at conversion.

Where can I learn more?

Comparing lenders? Read how to choose a construction-to-permanent lender in Florida or see our list of Florida construction loan lenders. Building somewhere else? See our construction loan guides by state.

Frequently asked questions

Can I be my own builder in Florida?

Yes, for a home you will live in, after signing a state disclosure statement. Many lenders still won't finance an owner-builder.

Which building code applies to a new home in Florida?

The Florida Building Code, 8th Edition (2023), effective December 31, 2023. Ask your building department whether a newer edition applies.

Who issues septic permits in Florida?

Onsite sewage systems are permitted under the Florida Department of Environmental Protection's onsite sewage program.

What is a Notice of Commencement in Florida?

A recorded notice that starts the construction lien process. It must be recorded before the first inspection.

Do I need a coastal permit to build on a Florida beachfront lot?

Lots seaward of the Coastal Construction Control Line need a DEP permit in addition to local permits.

Sources

Ready to build in Florida?

Tell us about your lot, your builder, and where you are building. Get connected at My Construction Path, and we'll connect you with lenders who offer construction financing in Florida.

My Construction Path is not a lender and does not make loans or credit decisions. Not all borrowers will qualify. Equal Housing Opportunity. Requirements vary by lender, loan program, and location. This article is for general education and is not a commitment to lend. It is not a quote of rates, payments, or loan terms.