Bridge Loan or Home Equity Line: The Florida Comparison
Program and regulatory figures verified September 19, 2026. Details change; confirm your scenario with us.
In most states this is a question about flexibility and cost of funds. In Florida there is a third variable, and it gets charged at closing.
The variable other states do not have
Florida taxes the instrument, not the usage. Documentary stamp tax on a mortgage, lien or other evidence of indebtedness runs $0.35 per $100 of the indebtedness secured, and the Department of Revenue's guidance adds four words that decide this comparison: the tax applies "even if the indebtedness is contingent." On top of that, Section 199.133 imposes a one-time nonrecurring intangible tax of 2 mills on each dollar of notes secured by Florida real property.
Together that is about $5.50 for every $1,000 secured, payable when the instrument is recorded. There is no cap on a mortgage against Florida real property; the $2,450 ceiling people sometimes cite applies to unsecured notes only.
What that does to a line of credit
A home equity line's appeal is that you draw only what you need and pay for only what you draw. Florida breaks half of that. You are taxed on the full committed amount at origination, whether you end up using all of it or none.
Take a $300,000 line. Roughly $1,650 in Florida taxes at recording. If the overlap resolves quickly and you only ever needed $80,000 of it, you still paid the tax on $300,000. The flexibility is genuine and so is its price, and the price is paid up front rather than as you go.
This is why "size the line generously so you have room" is reasonable advice in most states and expensive advice here.
How the comparison usually resolves
| Situation | Usually favors | Why |
|---|---|---|
| Income carries both payments | Neither; carry and recast | No new lien, so no Florida lien tax at all |
| Short, confident overlap with a known gap | Term financing sized to the gap | Tax is paid on what is actually needed |
| Uncertain overlap, unclear amount | A line, sized honestly | Flexibility is worth the tax, but size it to the real need |
| Long expected overlap in a slow metro | Rental conversion | Removes the timing pressure rather than financing it |
The rest of the comparison still applies
Florida's tax is an additional consideration, not the only one. Term financing gives a fixed obligation and a defined payoff, which underwriting finds easy to measure and borrowers find easy to plan around. A line gives flexibility, interest only on what is drawn, and the ability to leave capacity unused.
Both add an obligation while you still hold the first mortgage, and both are measured in your debt ratio. Neither creates income. If the two-payment test fails badly, more financing is not the answer; see the qualifying page for what actually closes a gap.
The option that avoids the question
If income supports both payments, carrying both and recasting after the sale records nothing against the departing home. No doc stamp, no intangible tax, no second obligation to underwrite. In Florida that structure is more attractive relative to the alternatives than it is elsewhere, purely because of what the alternatives cost to record.
Compare all three on the structures page.
Frequently asked questions
Is a HELOC taxed on the full line in Florida even if I do not draw it?
Yes. Florida documentary stamp tax applies to the amount of the indebtedness or obligation secured, and the Department of Revenue states it is due even if the indebtedness is contingent. Combined with the 2 mill nonrecurring intangible tax, that is roughly $5.50 per $1,000 of the committed line, payable at recording regardless of what you draw.
What does it cost in Florida taxes to record a $300,000 line?
Roughly $1,650, from $0.35 per $100 documentary stamp tax plus a 2 mill intangible tax on the amount secured. The cost is driven by the size of the line rather than the balance you carry, which is why sizing it to the real need matters more in Florida than in most states.
Should I use a bridge loan or a HELOC in Florida?
If the gap and the timeline are both reasonably known, term financing sized to the actual need usually wins, because Florida's tax is charged on the committed amount. If the overlap is genuinely uncertain, a line's flexibility can justify the cost, but size it honestly. If income supports both payments, carrying both and recasting avoids the tax entirely.
Is there a maximum Florida documentary stamp tax on a mortgage?
No. The $2,450 maximum applies only to unsecured notes and written obligations. For a mortgage or lien recorded against Florida real property the tax is $0.35 per $100 of the obligation secured with no ceiling.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not legal, tax, or real estate advice. Homestead eligibility, portability, and landlord-tenant rules change and depend on your facts; your county property appraiser, your CPA or a Florida attorney, and your real estate agent each handle their own part. Loans are subject to borrower and property qualification.