Orlando · Central Florida · Updated September 2026
An Orlando file is underwritten on Florida numbers. Insurance is the line that moves the loan amount, the assessment cap sets the tax trend, and since October 2025 there is no state sales tax on commercial rent.
By Michael McGovern, Founder | 25+ Years in Commercial LendingCommercial Mortgage Connection · Lending in all 50 states The short answer
An Orlando commercial mortgage is decided by the property's net operating income, not by the asking price, and in Florida two expense lines move that number more than anything else. Insurance is the first. Property taxes are the second, and they are capped at a 10% increase a year on commercial property for every levy except school district levies. The one piece of good news is that Florida repealed the state sales tax on commercial rent effective 1 October 2025, so that line is gone from your tenants' costs and from your rent roll analysis.
- Insurance first: get real quotes before you sign, because the premium decides the loan amount.
- Taxes: the assessed value can rise 10% a year, so the tax line grows even on a flat rent roll.
- Rent tax: no state sales tax on commercial rent for periods starting on or after 1 October 2025.
- Repositioning or vacancy: a bridge loan first, then a refinance once the property is stabilized.
Facts verified 24 September 2026 against the Florida Department of Revenue, the 2026 Florida Statutes, Citizens Property Insurance, Fannie Mae and HUD. Nothing on this page is a rate quote or an offer.
What this page covers
- Three Florida rules that change an Orlando loan
- Insurance is the swing line in a Florida file
- How an Orlando commercial mortgage gets sized
- Loan options for an Orlando property
- What your property type means to a lender
- What a Florida lender will ask you for
- When an Orlando deal does not pencil
- What a broker actually does on an Orlando file
- Orlando commercial mortgage FAQ
Three Florida rules that change an Orlando loan
Lenders everywhere run the same two tests: can the income cover the debt, and is the loan small enough against value. Florida changes the inputs to both tests before anyone looks at your building.
| Rule | What it says | What it does to your loan |
|---|---|---|
| Sales tax on commercial rent | Repealed effective 1 October 2025 for rental periods beginning on or after that date | Removes a cost line from tenants and simplifies the rent roll a lender reviews |
| Assessment cap on commercial property | For all levies other than school district levies, a reassessment may not raise the assessed value more than 10% over the prior year | Caps how fast the tax line can climb, but it still climbs after a purchase |
| Property insurance | Citizens Property Insurance rate changes effective 1 July 2026: commercial residential multiperil +7.2%, condominium multiperil +7.7%, commercial residential wind-only +14.4%, nonresidential multiperil -1.8% | Sets the largest and least predictable expense in a Florida file |
The pattern matters more than any single number. In New York the argument with a lender is usually about rent regulation. In Orlando it is almost always about insurance, and the owners who get the best terms are the ones who bring real quotes to the conversation instead of last year's premium.
Insurance is the swing line in a Florida file
Here is why underwriters start there. Net operating income is income minus expenses, and the loan is sized from that number. Raise the insurance line and the loan shrinks, even though nothing about the building changed.
Take a 60-unit garden-style property. If the insurance quote comes back $500 per unit per year higher than the seller's actual, that is $30,000 less net operating income. At a 1.25x debt service coverage minimum, the property can now carry $24,000 less debt service a year, or $2,000 a month. At an example 6.50% rate on a 30-year amortization, that is roughly $316,000 less loan. The same math runs in reverse when a wind mitigation report and a newer roof bring the premium down.
Two practical moves protect the loan amount. Order the insurance quotes at the same time as the inspection, not after, and ask the agent to price the property with and without the mitigation credits so you know what the roof work is worth in loan dollars.
If you already own the building and want to pull equity out, our guide to a cash-out refinance on an Orlando apartment building works through what the same insurance line does to your proceeds.
How an Orlando commercial mortgage gets sized
Two tests run at once and the lower answer wins. Debt service coverage asks whether the net operating income comfortably exceeds the annual payments. Loan-to-value caps the loan against the appraised value. Fannie Mae's Small Mortgage Loan program, a common fit for Orlando apartment buildings, allows up to 80% of value and requires at least 1.25x coverage.
A plain example. Say the property nets $260,000 a year after real Florida expenses, including a current insurance quote. At 1.25x, annual debt service can be no more than $208,000, which is about $17,333 a month. At an example 6.50% rate on a 30-year amortization, that payment supports a loan of roughly $2,742,000. If the price is $3,600,000, the loan is about 76% of price, so coverage sets the ceiling rather than the 80% cap. The rate is an illustration, not a quote.
Our guide to the loan-to-value ratio on apartment loans explains the second test, and the fixed vs variable rate guide covers what prepayment terms cost when you sell early.
Loan options for an Orlando property
Most Orlando requests land with one of five kinds of lender. The right one depends on the property type, its condition, and how long you plan to hold it.
| Loan type | Best for | Key terms | Watch for |
|---|---|---|---|
| Local or regional bank | Owner-occupied and stabilized property with a banking relationship | Terms vary by bank; personal guarantees are common | Shorter terms and balloon payments |
| Portfolio lender | Unusual files, foreign nationals, or owners of several properties | Held on the lender's balance sheet, with more flexible underwriting | Pricing varies widely |
| Fannie Mae Small Mortgage Loan | Existing, stabilized buildings with 5 or more units | Up to $9 million, 5- to 30-year terms, up to 80% of value, at least 1.25x coverage | Needs a stabilized property; yield maintenance or a declining prepayment premium |
| HUD 223(f) | Long holds on existing apartment buildings | Terms up to 35 years, up to 83.3% of value for market-rate properties, building completed at least 3 years | Slower approval; not for substantial rehabilitation |
| Bridge loan | Vacancy, renovation, hurricane repairs or a hard closing deadline | Short term, sized on cost or as-is value, often with an interest reserve | Higher cost; needs a clear refinance plan |
Compare the programs on our apartment building loans page, or the broader commercial mortgage overview if the property is retail, office or industrial.
What your property type means to a lender
Orlando is not one market to an underwriter. It is four or five, and each one is priced differently.
- Garden-style multifamily. The most financeable asset in Central Florida, and the one with the deepest lender pool: banks, agency small loans, HUD and portfolio lenders all compete for it.
- Hospitality. Hotels near the attraction corridors are underwritten as operating businesses, not just real estate. Expect a lender to look at revenue per available room, brand and management, and to price accordingly.
- Retail and strip centers. The tenant roster carries the file. National credit tenants with long leases finance easily; short local leases mean lower leverage.
- Small industrial and flex. Strong demand along the distribution corridors, and usually the cleanest underwriting after multifamily.
- Office. The hardest to place anywhere in the country right now. It is financeable with low leverage, a strong sponsor and real occupancy, and it needs a lender chosen specifically for it.
What a Florida lender will ask you for
A complete package moves faster than a strong one that arrives in pieces. For an Orlando property, expect this list.
- Current insurance quotes, not the seller's expiring premium, with wind and flood priced separately.
- Roof age and condition, and a wind mitigation report where one exists. Both change the premium and the loan.
- Flood zone determination and, if the property sits in a special flood hazard area, the flood premium.
- Rent roll and trailing 12 months of income and expenses, plus the last two years of statements.
- The current tax bill and assessed value, so the lender can trend the tax line forward under the 10% cap.
- Property condition and environmental reports as the lender requires them.
- Borrower package: schedule of real estate owned, net worth and liquidity after closing, and credit for every key principal.
When an Orlando deal does not pencil
Some files should not be forced. If the numbers only work using the seller's old insurance premium, wait until you have a real quote. If the roof is at the end of its life and there is no reserve for it, price that before you sign. If there is no cash left after closing, wait, because a Florida property will find a repair in the first year.
The fix is usually one of three: a lower price, a partner who brings liquidity, or a bridge loan with a written refinance plan instead of a permanent loan the property cannot support yet.
The goal is not simply to close an Orlando commercial mortgage. It is to close one the property can still carry in year three, after the tax line has stepped up and the insurance has renewed twice.
What a broker actually does on an Orlando file
Commercial Mortgage Connection places loans through a network of 750+ lenders in all 50 states, and we have done it for Florida property for years. On an Orlando file that means matching the property to lenders who are comfortable with Florida insurance costs, presenting the numbers the way each lender wants to see them, and pricing the options side by side so you can compare rate, term, leverage and prepayment in one place.
An Orlando commercial mortgage is rarely won on rate alone. It is won on how the file is presented, which lenders see it, and whether the insurance number in the package is the one the property will actually pay.
Michael McGovern reviews every file himself. If the property does not pencil at the price, or the package needs more equity or a partner first, you hear that before you spend money on third-party reports. For a comparison of how this works in another market, see our NYC commercial mortgage guide, or the foreign national lending page if the buyer is not a US citizen.
Orlando commercial mortgage FAQ
Do I need a local Orlando lender?
No. Plenty of Orlando property is financed by regional banks, national agency lenders and portfolio lenders that never set foot in Orange County. What matters is that the lender understands Florida insurance and is comfortable with your property type. A broker's job is to find the ones that are, and to get their pricing side by side.
How much does insurance really change my loan amount?
More than most buyers expect. On a 60-unit property, an insurance quote that is $500 per unit per year above the seller's actual removes $30,000 of net operating income. At a 1.25x coverage minimum and an example 6.50% rate over 30 years, that is roughly $316,000 less loan. Get the quotes before you sign a contract.
Is there still sales tax on commercial rent in Florida?
No. Florida repealed the state sales tax on commercial rentals effective 1 October 2025, for rental periods beginning on or after that date. Leases that ran before that date are treated under the old rules, so your accountant should confirm the cut-off on any rent that straddles it.
How much do I need to put down on an Orlando commercial property?
Plan on 20% to 30% of the price, plus closing costs and reserves. Fannie Mae's small-loan program caps the loan at 80% of value and requires at least 1.25x debt service coverage, and in Florida the coverage test often sets a lower ceiling than the 80% cap does once insurance is priced properly.
How fast can an Orlando deal close?
Bank and portfolio loans commonly run 30 to 60 days once the package is complete, agency loans longer, and HUD longer still. The delays we see most often in Florida are insurance quotes that arrive late and roof or condition issues found during inspection, which is why both belong at the start of the file.
Sources
- Florida Department of Revenue, Tax Information Publication 25A01-04: Sales Tax on Commercial Rentals Repealed Effective October 1, 2025. Checked 24 September 2026.
- 2026 Florida Statutes, section 193.1555, Assessment of certain residential and nonresidential real property. The 10% annual assessment increase limitation for all levies other than school district levies. Checked 24 September 2026.
- Citizens Property Insurance Corporation, 2026 Rate and Rule Changes, Commercial Lines. Statewide average rate changes effective 1 July 2026 and the capping rules. Checked 24 September 2026.
- Fannie Mae Multifamily, Small Mortgage Loan Program Term Sheet. Loan amount, term, maximum LTV and minimum DSCR. Checked 22 September 2026.
- U.S. Department of Housing and Urban Development, Section 207/223(f). Eligibility, term and loan-to-value limits. Checked 22 September 2026.
Michael McGovernFounder, Commercial Mortgage Connection. Michael wrote and reviewed this guide drawing on a career that began at Bear Stearns & Co. in 1997, ran through structuring billions of dollars in CMBS and MBS in Bear's F.A.S.T. group and selling mortgage product at Lehman Brothers, and now spans more than $1 billion in originated mortgages.
Financing a property in Orlando? Send us the numbers and the insurance quote.
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Facts on this page were verified against the cited Florida, Fannie Mae and HUD sources on 24 September 2026. Tax rules, insurance rates, program limits and lender appetite change, and the example rate and figures on this page are illustrations, not offers or quotes. Nothing on this page is a loan offer, a rate quote, legal, tax or insurance advice, or personalized financial advice; all financing is subject to lender approval, credit review and property underwriting, and no approval is guaranteed. Broker licensing and closing rules vary by state. Commercial Mortgage Connection is a commercial mortgage brokerage, is paid when loans close, and sells the service described on this page. Equal Housing Opportunity.
