Hard Money and DSCR Loans in Maryland: An Investor's Guide (2026)
Lead rules, rental licenses and closing costs in our home state.
- DSCR, fix and flip and portfolio loans
- No income documentation for DSCR; most borrowers have 660+ credit, lower scores reviewed case by case
- $75,000 to $5 million
By Beltway Lending. Updated November 2026.
We're based in Kingsville, just outside Baltimore, and Maryland is where we started. Our CEO, Brian Valdivia, owns rentals here himself, from Dundalk and Essex to short-term rentals in Ocean City, so we know the local deals firsthand. This guide covers the loans Maryland investors use, the kinds of lenders you'll find here, what to ask before you pick one, and the Maryland rules that catch out-of-state investors off guard.
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Loans for Maryland investors
- Fix and flip (hard money) loans: short-term loans, usually 6 or 12 months, to buy and renovate. We fund up to 90% of the purchase price and 100% of the rehab, subject to underwriting, with as little as 10% down. Rehab money is released in draws as the work gets done. No experience required, and credit isn't a hard stop.
- DSCR rental loans: 30-year fixed loans (40-year available) for long-term and short-term rentals, qualified on the property's rent instead of your income. No tax returns or pay stubs. Most borrowers have 660 or higher; lower scores are reviewed case by case.
- Portfolio loans: two or more rentals under one loan and one payment, in Maryland or across several states.
Loans from $75,000 to $5 million, to individuals, LLCs, corporations and trusts. Many of our clients flip with us, then refinance into a DSCR loan with the same team.
DSCR means debt service coverage ratio. For these loans, we compare the property's rent with its monthly principal, interest, taxes and insurance. Approval also depends on credit, assets, the property and program requirements. To start, we need a valid ID and two months of bank statements, and we run a soft credit pull. Additional property and closing documents may be needed.
For DSCR loans, prepayment penalties are optional; a lower or no penalty generally means a higher rate. Ask any lender for the rate, points, fees, prepayment terms and total cash to close in writing. On a flip, a 10% down payment doesn't include closing costs or any required reserves.
Your lender options in Maryland
Local private lenders in Baltimore, Towson, Annapolis and the DC suburbs. They know Maryland neighborhoods and can move fast, and some will lend with no credit minimum. Some make short-term loans only, and some lend only in Maryland and nearby states, so plan your long-term refinance before you buy.
National lenders with Maryland programs. They offer large loan sizes and online applications, and their pricing usually runs on tiers of credit and experience. At least one requires a completed flip before it will lend on one.
Banks and credit unions. Often the lowest rates, but they usually want income documents, take longer, and are less likely to finance a distressed or vacant property.
Compare written terms, not headline offers
A lender's maximum purchase financing may still be limited by the property's after-repair value (ARV), your experience or other underwriting requirements. Compare purchase and rehab funding, the ARV cap, draw fees, interest on undrawn funds and extension costs. Advertised closing speed depends on the loan file, title work and property review.
What to ask before you choose
- How much will you fund, and is it the purchase, rehab or ARV limit that sets my loan?
- How fast are draws paid after an inspection, and is there a fee per draw?
- Do I pay interest on rehab money I haven't drawn yet?
- What does an extension cost if the renovation runs long?
- Can you refinance me into a 30-year DSCR loan when I'm done?
The full checklist: How to Choose a DSCR Lender.
What's different about investing in Maryland
- Lead paint: Maryland generally requires rentals built before 1978 to be registered with the Maryland Department of the Environment, with the registration renewed every year, and to have a valid lead inspection certificate at each tenant turnover, unless the property is certified lead-free. Limited lead-free certificates have their own ongoing requirements. See MDE registration guidance and inspection options. Put it in your rehab budget and timeline.
- Rental licenses: Baltimore City and Baltimore County both require rental licenses, and other counties and towns have their own rules. Check before you set a move-in date.
- Closing costs: Maryland's state and county transfer and recordation taxes add noticeably to closing costs and to the cash you need at closing. Get a full estimate early.
- Short-term rentals: licensing, zoning and operating rules vary by jurisdiction, including Ocean City. Confirm the rules before you buy a beach rental.
- Appraisals: values can change block by block in Baltimore. A lender and appraiser who know the area are less likely to surprise you.
The numbers
Maryland's median gross rent was $1,721 a month in the Census Bureau's 2024 American Community Survey, and its median owner-occupied home value was $436,300. A year of that rent is about 4.7% of that value, before taxes, insurance, repairs or vacancy, and the two medians describe different homes, so treat it as a statewide comparison, not a yield. Compare every state on our rent vs. home price page, and underwrite your own deal on its real rent and costs.
Where we lend in Maryland
Statewide, including Baltimore, Dundalk and Essex, Towson, Glen Burnie, Hagerstown, Frederick, Salisbury and Ocean City. We also lend in every other state except Alaska, Hawaii, Nevada, North Dakota, South Dakota and Vermont.
Closer to our office, see our page for Baltimore County and Harford County.
Buying in Maryland from out of state?
Many of our Maryland borrowers live somewhere else. You don't need to live in Maryland to apply: a DSCR loan uses the property's rent rather than your employment income, and approval still depends on borrower, property and program requirements. Close in your LLC, and our team handles the busy work: gathering documents, chasing the appraisal and keeping you updated through closing.
Questions investors ask
Do you lend in Maryland?
Yes, statewide. We're based in Kingsville, and Maryland is one of the states where we close the most loans.
What credit score do I need for a DSCR loan in Maryland?
With us, most borrowers have 660 or higher, and lower scores are reviewed case by case. Ask each lender for its current requirements.
Can a first-time investor get a fix and flip loan in Maryland?
Yes. We don't require experience. Terms and leverage depend on the deal and underwriting, and more experience can mean better terms.
How fast can a hard money loan close in Maryland?
We can close a fix and flip loan in as little as 5 days, generally 2 to 3 weeks. DSCR loans close in as little as 10 days, typically 3 to 4 weeks.
Do I need a lead certificate for a Maryland rental?
Generally, yes, for a rental built before 1978: it must be registered with MDE every year and have a valid lead certificate at each tenant turnover. Certified lead-free properties are exempt from the routine risk-reduction requirements; check MDE guidance for your certificate type.
Can I close a Maryland loan in my LLC?
Yes. Individuals, LLCs, corporations and trusts. Expect to personally guarantee the loan; that's standard.
Have a Maryland deal? Let's talk it through.
Get a quote online or call our team.
