Bridge Loan Maryland

Last Updated: April 28, 2025

At OfferMarket, we’re committed to helping you grow wealth through real estate investment. As part of our mission, we provide a fully integrated platform that supports your journey with:

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Our Maryland Bridge Loan program delivers reliable, fast, and cost-effective financing for the purchase and improvement of 1-4 unit residential investment properties across the state.

Whether your plan is to renovate and resell for profit, or hold the property as a rental and refinance into a DSCR loan, we’re here to support your strategy and help you achieve success.

Let’s dive into the details of the Maryland Bridge Loan Program!

What is a Bridge Loan?

A bridge loan offers short-term funding designed to bridge the gap until long-term financing is in place. This type of loan provides the flexibility you need to secure and enhance investment properties without tying up your own cash.

Common Bridge Loan Scenarios

Among real estate investors in Maryland, bridge loans are frequently used for the following situations:

• Acquisition and renovation of a fixer-upper: Ideal when you're purchasing a distressed or outdated property and need financing to cover both the acquisition and the rehab — sparing your personal funds.

• Cash-out refinancing on a recent cash purchase: When you've secured a property off-market with cash for a quick close and now want to tap into that equity to fund your rehab.

• Refinancing an existing loan on a property under renovation: Perfect when your current hard money lender requires repayment, but you still need time and funds to complete the rehab and either sell or refinance the property.

• Purchasing without plans to renovate: Useful for buying below-market properties with the intention to resell as-is for profit.

• Refinancing a cash purchase with no rehab required: If you bought a property below market value and plan to sell it while unlocking equity for your next deal.

• Refinancing an existing loan after the rehab is done: When the renovation is complete, but you want additional time to either market the property for sale or refinance into a rental loan.

In the investment world, bridge loans often go by other names like "hard money loans" or "fix and flip loans" — terms that are used interchangeably among real estate professionals and private lenders.

How it works

Our Maryland bridge loan is structured with two key components to offer maximum flexibility:

• Initial Advance- This is the portion of your total loan allocated toward the property purchase price. It’s disbursed directly to the title company at closing.
• Construction Holdback- This is the portion of your loan reserved for funding your renovation project. It’s distributed to you through reimbursement draws as your rehab work progresses.

The beauty of this structure is its adaptability. If you only need funds for renovations and not for the purchase itself, you can opt for just the construction holdback. Conversely, if your focus is solely on acquisition without plans to renovate, you can utilize only the initial advance.

In reality, many investors choose to combine both the initial advance and construction holdback to stretch their capital further and minimize out-of-pocket expenses. However, some prefer to finance the rehab with their own resources or choose not to renovate at all, relying exclusively on the initial advance.

There are also scenarios where investors purchase properties outright with cash and then use the construction holdback to cover up to 100% of their rehab costs. With OfferMarket’s Maryland Bridge Loan, you have the flexibility to tailor your funding to your strategy — the choice is yours!

Your exit plan might be to flip the property for profit or to retain it as a rental and refinance into a long-term loan such as a DSCR loan. And if you're not fully set on your exit strategy at the start, that's completely okay — flexibility is a core advantage of this program.

It’s common for investors to pivot their strategies based on changing market conditions or new financial insights. For example:

• You may begin with a BRRRR approach (Buy, Rehab, Rent, Refinance, Repeat), but if rental demand isn't as strong as expected, selling the renovated property might offer the better return.

• On the flip side, if your initial plan was to flip but the sales market cools, you could decide to rent the property, refinance into a DSCR loan with favorable prepayment terms, and hold onto the asset until market conditions improve.

The key is choosing projects that give you multiple exit options. Having a dual strategy can significantly reduce your risk and provide flexibility if market dynamics shift.

Who Typically Uses Bridge Loans?

Maryland investors across a range of strategies take advantage of bridge loans to fuel their real estate deals:

• Fix and flip investors (“flippers”)

• Buy-and-hold rental property investors (BRRRR Method)

Curious about maximizing your rental strategy? Check out our Fix and Rent bundle, which combines a Maryland bridge loan for acquisition and rehab with a discounted DSCR loan for your refinance.

As we’ve seen time and again with our clients, successful investors often use a hybrid strategy — flipping some properties and renting others — depending on how individual projects and the broader market play out.

Maryland Bridge Loan Program Guidelines

Project Eligibility

At OfferMarket, we’re invested in your success. Our mission is to help Maryland investors build lasting wealth through real estate while managing risk effectively. Thanks to our diligent underwriting approach, fewer than 0.5% of all loans we’ve originated have required foreclosure — one of the lowest default rates in the private lending space.

We want you to succeed — and that means helping you avoid risky projects that can jeopardize your capital. In our experience, first-time or lower-experience borrowers who take on highly complex rehabs (heavy or extensive scopes) are at the greatest financial risk. These projects often face delays, unexpected expenses, and shifting market conditions — factors that can challenge even seasoned investors.

Economic uncertainty further amplifies these risks, making proper deal selection and conservative planning essential.

As your Maryland bridge loan partner, we act not just as a lender but also as your deal advisor and risk management ally. We believe in setting clear expectations to empower you to grow your real estate business safely.

To support this, we use a structured rehab scope classification system to determine eligibility based on the scale of your project.

Initial Advance: How It’s Determined

The initial advance — the portion of your Maryland bridge loan used for property acquisition — is calculated based on several borrower-specific and deal-specific factors.

Key considerations include:

• Number of investment properties owned in the last 24 months

• Number of similar rehab projects successfully completed within the past 5 years

• Minimum credit score requirement of 680 (with a strong preference for 720+ for the personal guarantor)

We also offer higher leverage to Maryland investors who are:

• Licensed Realtors

• Licensed General Contractors

• Licensed Professional Engineers

Note: If your purchase price exceeds the As Is value determined by our appraisal or in-house valuation, your initial advance will be calculated based on that As Is value — not your contract purchase price.

How Exit Strategy Impacts Your Initial Advance

• Selling the property? We expect a minimum projected gross margin of 30% and at least $15,000 profit.

• Planning to rent and refinance? Your projected DSCR after repairs should be no less than 1.1.

Make use of our Fix and Flip Calculator and DSCR Calculator to confidently assess your Maryland project’s numbers and exit strategies.

Properties located in rural areas: These are subject to limited initial advances, and a minimum experience level of 3 completed projects is required.

Experience-Based Tiers

Initial Advance By Experience Tier

Adjustments to Initial Advance

There are scenarios where your initial advance may be adjusted based on certain risk factors or qualifications:

Rehab Scope Classification

A “lopsided deal” refers to scenarios where the purchase price or As Is value is lower than the rehab budget. Additional limits apply — see LTFC Limits below.

Rehab Scope Eligibility

Your eligibility for different levels of rehab scope in Maryland depends on your experience tier. Our focus on risk management encourages investors to prioritize light and moderate rehabs — these projects typically move faster and avoid common pitfalls like major delays and cost overruns.

LTARV Limits

The Loan-To-After-Repair Value (LTARV) ratio — also known as ARLTV — is capped according to your experience tier and the rehab classification of your project.

LTFC Limits (Loan-To-Full-Cost)

For Extensive rehabs, where the rehab budget exceeds the purchase price or As Is value, we apply Loan-To-Full-Cost (LTFC) limits. This ensures that you maintain sufficient personal investment in higher-risk projects.

An LTFC of 85% means we fund up to 85% of your total project costs (purchase price + rehab budget), and you are responsible for the remaining 15%. This structure aligns your interests with the success of the project — especially important for higher-risk, complex renovations.

Example 1: New Investor with No Prior Experience

• Purchase price: $100,000

• Experience tier: 1 (no verifiable rehab projects)

• Credit score: 695

• Rehab budget: $24,000

• After Repair Value (ARV): $150,000

• Initial advance: $75,000 (75% of purchase price)

• Construction holdback: $24,000

• Total loan amount: $99,000

• LTARV: 66%

• LTFC: 79.8%

• Interest accrual: Full boat (interest charged on the total loan amount)

Example 2: New Investor, Excellent Credit

• Purchase price: $100,000

• Experience tier: 1 (no verifiable rehab projects)

• Credit score: 750

• Rehab budget: $24,000

• After Repair Value (ARV): $150,000

• Initial advance: $80,000 (80% of purchase price)

• Construction holdback: $24,000

• Total loan amount: $104,000

• LTARV: 69.33%

• LTFC: 83.9%

• Interest accrual: As disbursed (interest charged only on drawn funds)

Example 3: Experienced Investor (5 Completed Projects)

• Purchase price: $100,000

• Experience tier: 4 (5 verifiable rehab projects)

• Credit score: 750

• Rehab budget: $20,000

• After Repair Value (ARV): $150,000

• Initial advance: $90,000 (90% of purchase price)

• Construction holdback: $20,000

• Total loan amount: $110,000

• LTARV: 73.33%

• LTFC: 91.67%

• Interest accrual: As disbursed

Refinance: Using As Is Value Instead of Cost Basis for Initial Advance

In most cases, our underwriting is based on your cost basis — meaning the total of your purchase price plus any sunk rehab costs. This approach ensures you maintain equity in the project (“skin in the game”).

However, in certain refinance scenarios where your Maryland property is already seasoned and the As Is value exceeds your cost basis, we may consider lending against that higher value. To qualify for this approach, the following conditions must be met:

Refinance Eligibility Criteria:

• The property is habitable (C4 condition or better) and not in disrepair

• Property must have at least 3 years of seasoning

• If refinancing an existing loan, the current lender should not be a bridge or construction lender, and there should be no default interest, extension fees, or late fees

• Borrower credit score of 680+

• Experience tier of 3 or higher (minimum of 4 similar completed rehab projects)

• Solid comps supporting the As Is value exceeding cost basis

• Scenario supports the logic (e.g., the property was rented for 3 years, now vacant, and undergoing renovation to prep for sale)

Transactions involving wholesalers, price run-ups

If your Maryland real estate deal involves a wholesaler or an assignment fee, here’s how we handle it:

• We may include the assignment fee or price run-up in your cost basis — but only up to 20% of the original purchase price between the seller and wholesaler.

• You’ll be responsible for any price increase above that 20% cap.

Example:

Additional requirements:

• Full chain of contracts (A-B, B-C)

• Wholesaler’s operating agreement

• No MLS-listed deals qualify for assignment fee inclusion

• Finder’s fees or referral fees are not eligible for financing

• Only arm's length transactions qualify

Construction Holdback

The construction holdback portion of your Maryland bridge loan is designed to fund your renovation work. Funds are released via draw requests and reimbursed as you show verifiable progress on your rehab project.

If you have enough liquidity to fund your renovation yourself, you can choose not to include a construction holdback in your loan. Many Maryland investors prefer this option when they’re confident in their cash flow.

If your total loan amount is $100,000 or more, you will only pay interest on the funds that have been drawn from your construction holdback — not on the undrawn amount. This is known as “As Disbursed” interest accrual.

This system helps you maintain momentum on your Maryland rehab project without unnecessary delays.

Appraisal and In-House Valuation

Every Maryland bridge loan requires a property valuation. Depending on your specific scenario, we may order one of the following:

• Interior appraisal

• Exterior appraisal

• In-house valuation (available to qualifying borrowers)

In-House Valuation Eligibility

Note: OfferMarket reserves the right to require a third-party appraisal even if you meet these criteria.

Exterior Appraisal Guidelines

Exterior-only appraisals are acceptable for certain types of Maryland property acquisitions, including:

• REO sales

• Foreclosure auctions

• Sheriff’s sales

• Online auctions

• Bankruptcy sales

The appraisal must be dated within 120 days of settlement. If the report is between 120 and 179 days old, a recertification is required.

Interior Appraisal Guidelines

In all other situations not covered by the exterior appraisal or in-house valuation, a full interior appraisal will be required.

OfferMarket will handle the ordering of the appraisal through an approved Appraisal Management Company (AMC), and you will be responsible for paying the invoice directly to the AMC. Loan processing will be paused if the appraisal invoice remains unpaid.

Appraisal Transfer Policy

If you already have an appraisal not ordered by OfferMarket, you may be able to transfer it as long as these conditions are met:

• The appraisal was ordered through an approved AMC.

• The appraisal is less than 180 days old at closing.

• If older than 120 days but less than 180 days, it has been recertified.

• The transferring lender provides:

  • A signed transfer letter confirming AIR (Appraiser Independence Requirements) compliance.

  • PDF and XML appraisal report files.

  • Paid appraisal invoice.

Scenario: Stabilized Bridge Loan

If your Maryland property is stabilized — meaning it has no deferred maintenance issues and carries an appraisal condition rating of C4 or better — we may offer financing based on the property’s As Is value. In these cases, we can fund up to 75% of the As Is value without factoring in a rehab budget. This option is ideal for properties that are already rent-ready or market-ready.

This type of loan is known as a stabilized bridge loan because the property is not distressed and requires little or no improvement prior to rental or sale.

Key Loan Details

Extensions

Our Maryland bridge loans are designed as short-term financing solutions, typically lasting between 12 to 24 months. Most projects are completed well before the end of the term.

We strongly advise against relying on loan extensions. Extensions can increase your costs through additional fees, extra interest, and — if not managed carefully — could put your project at risk of foreclosure if the loan term expires without repayment.

Key Risks That May Lead to Extension Needs:

• Working with inexperienced general contractors

• Choosing an aggressive rehab scope that doesn’t match your experience or liquidity

• Investing in markets with slow zoning or permitting processes

• Acquiring properties where you cannot access the property immediately (e.g., inherited tenants or eviction requirements)

• Projects without a clear dual exit strategy (flip or refinance)

Controlling these factors significantly reduces the chance that you’ll need to extend your Maryland bridge loan.

Extension Limits

If you reach the end of your loan term without payoff, extensions are available up to 50% of your original loan term. Extensions can be requested in 3-month or 6-month increments, depending on your needs.

Extension Terms and Fees

If your Maryland bridge loan requires an extension, here’s how the associated fees break down. These extension fees will be added directly to your payoff statement:

Our goal is to help you avoid these additional costs by supporting proper project planning and risk management from the start.

Extension Prerequisites

Before your Maryland bridge loan can be extended, we require verification that your builders risk insurance policy is active and remains in effect throughout the requested extension period.

Ineligible Property Types

The following types of properties are not eligible for financing through OfferMarket’s Maryland Bridge Loan Program:

• Mixed-use properties

• 5+ unit multifamily properties

• Condotels (condo hotels)

• Co-ops

• Mobile or manufactured housing

• Commercial properties (retail, office, industrial, etc.)

• Cabins or log homes

• Properties with oil or gas leases

• Operating farms, ranches, or orchards

• Vacation rentals or seasonal properties

• Unique, exotic, or luxury homes

• Properties located on unpaved or dirt roads

These exclusions help maintain the integrity and focus of our lending program on traditional 1–4 unit residential investment properties.

Exception Scenarios

In certain situations, exceptions may be considered for otherwise ineligible elements. Here’s a breakdown of exception scenarios where flexibility may apply:

Borrower and Guarantor Requirements

To ensure responsible lending and promote successful project outcomes, we maintain the following eligibility standards for all Maryland bridge loan borrowers and guarantors:

Liquidity Verification

To help ensure your Maryland real estate project is on solid financial footing, we verify liquidity across several eligible asset types.

Accepted Forms of Liquid Assets:

• Personal bank accounts

• Business bank accounts (including the borrowing entity)

• Other business entity bank accounts (with supporting operating agreement)

• Personal brokerage accounts

• Business brokerage accounts (including the borrowing entity)

• Other business entity brokerage accounts (with operating agreement verification)

• Personal retirement accounts (subject to a 50% reduction for restricted access)

Important Notes:

• You are not required to maintain a business bank account, though it is recommended for proper accounting and risk management.

• Aside from your required cash to close (which is confirmed at settlement), you don’t need to move funds between accounts to meet liquidity requirements.

• Verification includes two most recent account statements for each source of liquid assets.

• No seasoning requirement for new accounts.

• Letter of Explanation (LOE) may be requested for large deposits.

Credit and Background Items

At OfferMarket, we conduct a thorough review of both your credit profile and background to ensure the health and integrity of each Maryland bridge loan transaction.

Credit Score Evaluation:

• If three scores are returned on your tri-merge report, we use the middle score (2nd highest).

• If two scores are returned, we use the lowest score.

• If no mortgage tradelines exist, we require six months of interest reserves.

• If fewer than five tradelines exist, we also require six months of interest reserves.

Background Requirements:

Interest Reserves

In certain Maryland bridge loan scenarios, we may collect interest reserves at closing. These reserves are held in servicing escrow and applied directly to your accrued interest before any payments are due from your bank account.

When Interest Reserves Are Required:

Financed Interest Payments

For eligible Maryland borrowers, we offer the option to finance your interest payments instead of making monthly payments out of pocket. This approach protects your liquidity throughout the duration of your project.

How Financed Interest Works:

Rather than paying interest each month, your accrued interest is added to your final payoff balance.

Example Scenario:

• Loan amount: $100,000

• Interest rate: 12% annual

• Months held: 9 months

• Accrued interest: $9,000 ([$100,000 × 12% ÷ 12 months] × 9 months)

Payoff Statement at Closing:

• Unpaid principal: $100,000

• Unpaid interest: $9,000

Property Sourcing Guidelines

Key Points:

• New market transactions (first-time borrowers in a market) require either a General Contractor agreement or a Letter of Explanation stating why a GC is not necessary.

• Properties with price run-ups (assignment fees, wholesale deals, or non-arm’s length transactions) require additional review and documentation.

• For condos, conversions, or properties needing significant rehab, we may request architect or engineer letters or permitting documentation.

• Submission package must include:

  • Purchase contracts

  • Settlement statements

  • Payoff letters (if applicable)

  • Track record documentation

  • Borrowing entity formation documents (Articles of Organization/Incorporation, Operating Agreement, Certificate of Good Standing, W-9)

These sourcing guidelines help us maintain the highest level of deal quality and risk management across our Maryland bridge loan portfolio.

Bridge Loan Insurance Guidelines

To safeguard your investment and satisfy loan requirements, every Maryland bridge loan must include proper insurance coverage — commonly referred to as Builders Risk Insurance or Fix and Flip Insurance.

This specialized insurance protects:

1. The property itself (from damage or loss)

2. You as the investor (against liability during renovation)

Coverage and Limits:

Insurance Policy Requirements

💡 Pro Tip: After you take ownership of your Maryland property, be sure to install smoke detectors, locks, and security cameras right away. These measures help meet your insurance policy’s safety requirements and prevent coverage issues in the event of a claim.

Frequently Asked Questions (FAQs)

What states does OfferMarket fund bridge loans?

We proudly fund bridge loans for 1–4 unit residential investment properties across most U.S. states — including Maryland. Here’s the full list of eligible states:

• Alabama

• Arizona*

• Arkansas

• California

• Colorado

• Connecticut

• Delaware

• Florida

• Georgia

• Hawaii

• Idaho

• Illinois

• Indiana

• Iowa

• Kansas

• Kentucky

• Louisiana

• Maine

• Maryland

• Massachusetts

• Michigan

• Mississippi

• Missouri

• Montana

• Nebraska

• Nevada*

• New Hampshire

• New Jersey

• New Mexico

• New York

• North Carolina

• North Dakota*

• Ohio

• Oklahoma

• Oregon

• Pennsylvania

• Rhode Island

• South Carolina

• South Dakota*

• Tennessee

• Texas

• Utah

• Vermont*

• Virginia

• Washington

• Washington, D.C.

• West Virginia

• Wisconsin

• Wyoming

(*) In states where NMLS licensing is required for business-purpose lending or where OfferMarket does not lend directly, we act as a rate shopping service and refer your loan to a licensed capital provider.

Can I have more than one bridge loan at a time?

Yes, you can hold multiple Maryland bridge loans simultaneously. Many of our clients maintain several active loans as part of their real estate investment strategy.

That said, we prioritize risk management. If we believe your liquidity, project pacing, or overall exposure would not support additional loans, we will proactively address these concerns and work with you to responsibly manage your portfolio.

Are bridge loans considered commercial loans?

Yes — bridge loans are classified as business-purpose commercial loans because they are issued to your business entity (LLC or Corporation), not to you personally. These loans are intended for real estate investors, not owner-occupied or consumer residential use.

What is the minimum loan amount for a Maryland bridge loan?

The minimum loan amount is $25,000.

What types of properties qualify for Maryland bridge loans?

We finance non-owner occupied 1–4 unit residential properties, including:

• Single-family homes

• Townhomes

• Condominiums (warrantable)

• Small multifamily (2–4 units)

• Planned Unit Developments (PUDs)

Note: Mixed-use properties, 5+ unit multifamily, and other commercial property types are not eligible under this program but may qualify under different loan offerings.

How is Loan-to-Value (LTV) calculated?

For Maryland bridge loans, LTV typically refers to Loan-To-After-Repair Value (LTARV). Here’s how we calculate it:

• LTV: Loan amount divided by the property’s current As Is value.

• LTARV: Total loan amount (initial advance + construction holdback) divided by the after-repair value determined through appraisal or in-house valuation.

The initial advance is based on the lower of:

• The purchase price in your contract (or previous closing, for refinances)

• The As Is valuation

What credit score is required for Maryland bridge loans?

We require a minimum FICO score of 680. Borrowers with scores between 660–679 may still be considered on an exception basis.

Credit score is evaluated for each member of the borrowing entity who will be personally guaranteeing the loan. We do not factor in the credit score of non-guarantor members.

Is prior experience required?

No — prior experience is not required to qualify for a Maryland bridge loan.

However, investors with a track record of completed rehab projects may be eligible for higher leverage through our experience-based tier system.

Once you complete the Track Record section of your Loan File, our underwriting team will review and verify your project history. We may request supplemental documentation like settlement statements or operating agreements for verification.

Does wholesaling count toward experience?

No, wholesaling does not count toward your experience tier. To qualify as experience, you must have been financially responsible for the successful completion of a rehab project — not just involved in its wholesale transaction.

What Documentation Is Required for Maryland Bridge Loans?

Our streamlined Loan File system makes submitting required documents quick and easy, ensuring a smooth approval and funding process for your Maryland bridge loan. Below is the breakdown of required documentation for both purchase and refinance transactions:

Purchase Transaction Requirements

Refinance Transaction Requirements

Are there Special Documentation Requirements for Loans Over $1 Million?

For Maryland bridge loans over $1,000,000 (up to the program maximum of $2,000,000), we apply additional guidelines to ensure the project’s viability at this larger scale.

Glossary of Key Terms

Instant Maryland Bridge Loan Quote

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