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DSCR Loan Maryland

Last updated: April 16, 2024

DSCR Loan Maryland - Cover Photo

Maryland DSCR Loan Program Update

Now offering a no prepayment penalty option to Maryland investors. Current prepayment penalty options:

  • No Prepayment Penalty (0)
  • 1 Year (1-0)
  • 2 Year (2-1-0)
  • 3 Year (3-2-1-0)
  • 5 Year (5-4-3-2-1-0)

Now offering no and low seasoning cash out refi, up to 75% LTV at industry-leading terms.

Maryland DSCR loan interest rates

Today's DSCR loan interest rates are in the 7.5% to 8.25% range. Did you know OfferMarket is one of the fastest growing DSCR lenders in the country and we're based in Baltimore, MD? We would love to be your DSCR lender. Let's start with an instant quote!

Source: DSCR Loan Interest Rates Index

If you're looking for the best DSCR loan Maryland has to offer, you've come to the right place! Getting a DSCR loan for your Maryland rental property does not have to be time consuming or stressful. Get the lowest rate, highest leverage, lowest fees, and fastest processing every time from OfferMarket.

DSCR loans -- commonly referred to as "rental loans" -- are typically 30 year fixed rate mortgages where the loan amount is based on the cash flow of the rental property. DSCR stands for Debt Service Coverage Ratio, and is a simple cash flow metric that indicates whether the rental property can generate enough income to safely cover monthly mortgage payments. In order to determine the maximum loan your rental property qualifies for, we recommend using a DSCR calculator. Unlike conventional loans and bank loans, DSCR loans do not require income verification (i.e. W2 salaried employment) or income tax returns and are therefore faster and easier to obtain. Understanding how DSCR affects your loan amount will help you avoid frustrating situations where your loan amount is lower than you expected.

DSCR at Desired LTV
Cash Flow Negative Less than 1.0
Cash Flow Breakeven 1.0
Cash Flow Positive Greater than 1.0
Ideal Greater than 1.2

DSCR loans are popular among Maryland rental property investors because they do not require income verification or tax returns and are therefore faster than conventional loans and bank loans. You have many options when it comes to choosing a DSCR lender for your Maryland rental property. Here's how OfferMarket compares to other DSCR lenders:

OfferMarket Other DSCR Lenders
Interest Rate Get Instant Quote Get Instant Quote
LTV Purchase 80% 75%
LTV Rate and Term Refi 80% 75%
LTV Cash Out Refi 75% 70%
Minimum DSCR 1.1 1.2
Minimum Credit Score 660 680
Borrower Experience 0+ 1+
Appraisal Direct (save $250) AMC (waste $250)
Seasoning None 6 Months
Origination Fee 1% 2% to 3%
Junk Fees None Tons
Time To Close 15 - 25 Days 30 - 60 Days
Quoting Instant Slow
Pre-Approval Letter Instant Slow
Processing Online, Fast Manual, Slow

DSCR Loan Maryland

In Maryland, your primary residence cannot serve as collateral for your DSCR loan. Since DSCR loans are business purpose loans, your DSCR lender does not need to have an NMLS license.

Did you know that OfferMarket is headquartered in Maryland and founded by rental property investors that met at the University of Maryland? After working with several private lenders in Maryland, we decided that a better DSCR loan program should exist.

Our mission is to help you build wealth through real estate. We do this by eliminating unnecessary costs and providing you with the best possible terms every single time you get a DSCR loan from us.

📉 Lower interest rates
💰 Higher LTV
ğŸ›Žï¸ Better service
👨‍💻 Better technology
⚡ Faster time to close
📅 No seasoning

Where Can You Get a Maryland DSCR Loan?

We are actively funding rental property purchases and cash out refis throughout Maryland. If you're a new investor or an experienced investor looking for local market insights, our friendly and knowledgeable relationship managers are always happy to share our unique insights. Let's take a look at the best counties, cities, neighborhoods and ZIP codes for Maryland DSCR loans.

Best counties in Maryland to invest in rental properties using DSCR loans

  • Anne Arundel County
  • Baltimore City County
  • Baltimore County
  • Carroll County
  • Frederick County
  • Harford County
  • Howard County
  • Montgomery County
  • Prince Georges County

Best cities in Maryland to invest in rental properties using DSCR loans

  • Baltimore
  • Dundalk
  • Essex
  • Middle River
  • Edgemere
  • Towson
  • Parkville
  • Rosedale
  • White Marsh
  • Columbia
  • Ellicott City
  • Elkridge
  • Glen Burnie
  • Brooklyn Park
  • Rockville
  • Gaithersburg
  • Montgomery Village
  • North Potomac
  • Laurel
  • Upper Marlboro
  • Frederick
  • Edgewater
  • Annapolis
  • Silver Spring

DSCR Loan Baltimore

Baltimore is an excellent place to invest in rental properties, as long as you know where to invest. We're headquartered in Baltimore and our team of experts would love to share insights to help you build your portfolio of rental properties here in Baltimore.

Best neighborhoods for DSCR loans in Baltimore

Neighborhood ZIP Code
Federal Hill 21230
Riverside 21230
Locust Point 21230
Pigtown 21230
Fells Point 21231
Upper Fells Point 21231
Butchers Hill 21231
Brewers Hill 21224
Canton 21224
Highlandtown 21224
Dundalk 21222, 21224
Essex 21221
Middle River 21220
Edgemere 21219
Parkville 21234
Rosedale 21237
Woodlea 21206
Lauraville 21214
Park Heights 21215
Mt. Washington 21209
Pikesville 21209

Portfolio DSCR Loan Maryland

If you have 2 or more rental properties in Maryland, you can include them all in one loan -- this is called a "portfolio loan". Portfolio loans can be used when acquiring a portfolio from a single seller, or when refinancing multiple rental properties you already own.

Portfolio DSCR Loan
Number of Properties 2 or more
Interest Rate Get Instant Quote
Max LTV -- Purchase 80%
Max LTV -- Rate and Term Refi 80%
Max LTV -- Cash Out Refi 75%
Max LTC -- Delayed Financing 80%
Min DSCR 1.1
Min Credit Score 660
Min Loan Amount Per Property $50,000
Min As Is Value Per Property $62,500
Personal Guarantee No

Cash Out Refi DSCR Loan

The max LTV for a cash out refi DSCR loan in Maryland is 75%. While most DSCR lenders in Maryland require 6 months of seasoning, you can cash out refi with no seasoning. We just need to verify that you have added value to the property and you have a lease and security deposit in place. This is perfect for BRRR investors who want to quickly recycle cash to do more deals. You should not be penalized for rehabbing and leasing your rental property efficiently. We are a Maryland private lender specialized in DSCR loans for rental property investors that use the BRRR method.

Maryland Private Lender

In Maryland, DSCR loans are most commonly originated by lenders that identify as "private lenders". Private lenders are non-bank lenders who commonly sell your DSCR loan to institutional capital providers and credit investors, think Wall Street. Most Maryland DSCR loans ultimately end up as part of a mortgage backed security that is sold to fixed income investors including pension funds, credit funds, and insurance companies. This is done through a process known as "securitization". You don't need to worry about this, it's helpful to understand how the DSCR loan industry works.

Hard Money Lenders In Maryland

Technically, private lenders and hard money lenders in Maryland are the same. While lenders that identify as "hard money lenders" commonly originate DSCR loans, they tend to focus more on fix and flip loans.

Appraisal for Maryland DSCR Loans

As in other states, appraisals for Maryland DSCR loan will require the following form based on the type of property. Depending on your DSCR lender, your appraisal will either be ordered through an appraisal management company (AMC), or directly with an appraisal that is approved by your lender. At OfferMarket, we use both methods and allow our clients to request a preferred appraiser.

Using our Appraisal Price and Availability Request, we collect competitive bids from appraisers in our network and route our appraisal order directly to the most competitive appraiser. This typically saves you $250 by avoiding an AMC and results in faster turnaround time. If you have a time sensitive purchase or refi using a DSCR loan, this appraisal ordering process saves you time and money.

Property Type Appraisal Form
Single Family (SFR) 1004 with 1007
Duplex (2-Unit) 1025
Triplex (3-Unit) 1025
Quadplex (4-Unit) 1025
5+ Unit Full Commercial Narrative Appraisal
Condo 1073

DSCR Loan Maryland Requirements

Maryland requirements for DSCR loans are generally the same as other states.

Maryland DSCR Loan Requirements
DSCR 1.1 and higher
Property Condition Rating C2, C3, C4
Credit Score 660 and higher
Background Check No Felonies
Liquidity -- Purchase Enough to cover down payment, closing costs, 9 months of mortgage payments
Liquidity -- Refi Enough to cover 9 months of mortgage payments
Bankruptcy Not within the last 7 years

If you have a time sensitive transaction, we would love to be your DSCR lender. Get an instant quote and pre-approval today!