Yes. In fact, most 1031 exchanges require a new loan to satisfy the IRS "Equal or Greater Value" rule. To fully defer capital gains taxes, you must reinvest all net cash proceeds and replace the exact amount of debt held on the relinquished property. At Commercial Loans Florida, Inc., we specialize in permanent and bridge financing specifically structured to meet these strict IRS requirements.

To avoid "Mortgage Boot" (taxable income), you must replace 100% of the debt from your sold property. If you had a $400,000 mortgage on the property you sold, your new replacement property loan must be at least $400,000. You can also offset a debt decrease by adding your own out-of-pocket cash to the deal, but you cannot "pocket" the difference without paying taxes.

As of Q1 2026, 1031 exchange loan rates typically range from 5.19% to 6.20%, depending on the asset class.

Multifamily: 5.19% – 5.80%

Industrial/Retail: 5.80% – 6.25%

DSCR/Investor Loans: Rates vary based on the property’s cash flow.

This is the biggest risk for investors. We recommend obtaining a Conditional Loan Approval before you close on your relinquished property. Our "Speed-to-Close" protocol ensures that once you identify your three target properties by day 45, your financing is already vetted, allowing you to close well within the 180-day window.

Absolutely. Bridge loans are a strategic tool in 2026 for Reverse Exchanges (buying the new property before selling the old one). This allows you to secure a high-value replacement property in competitive Florida markets like Tampa or Miami without being rushed by the 45-day clock.

Yes. For investors who do not want to provide personal tax returns, our Debt Service Coverage Ratio (DSCR) loans are ideal. We qualify the loan based on the rental income of the replacement property rather than your personal income, which is a perfect fit for 1031 transitions into NNN (Triple Net) or multifamily assets.