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 Rate and Term Refi||80%||75%|
|LTV Cash Out Refi||75%||70%|
|Minimum Credit Score||660||680|
|Appraisal||Direct (save $250)||AMC (waste $250)|
|Origination Fee||1%||2% to 3%|
|Time To Close||15 - 25 Days||30 - 60 Days|
|Processing||Online, Fast||Manual, Slow|
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
🛎️ Better service
👨💻 Better technology
⚡ Faster time to close
📅 No seasoning
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.
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.
|Upper Fells Point||21231|
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 Credit Score||660|
|Min Loan Amount Per Property||$50,000|
|Min As Is Value Per Property||$62,500|
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.
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.
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.
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|
|5+ Unit||Full Commercial Narrative Appraisal|
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!