Hard Money Loan Maryland

Last updated: May 13, 2025

At OfferMarket, our purpose is to help you build lasting wealth through strategic real estate investments. We make that journey easier by providing an all-in-one platform tailored for Maryland investors:
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Our Maryland Hard Money Loan program delivers fast, reliable, and competitively priced funding to help you purchase, refinance, and enhance 1-4 unit residential investment properties across the state—from Baltimore rowhomes to suburban rentals in Montgomery County.

Whether you're eyeing a fix-and-flip opportunity in Prince George’s County or plan to BRRRR a rental in Hagerstown, OfferMarket is ready to be your lending partner and support your success.

Let’s take a closer look at how our Maryland hard money loans can power your next deal.

What is a hard money loan?

A hard money loan is a short-term real estate loan secured by a tangible asset—in this case, Maryland residential investment property with one to four units. These loans are designed to help you acquire, improve, and either sell or retain the property for rental income.

Commonly referred to as “fix and flip loans” or “bridge loans,” hard money loans are widely used by Maryland real estate investors who value speed and flexibility in their financing.

Hard money loan scenarios

Hard money loans are versatile financing tools used across Maryland in a variety of investment scenarios. Here’s how savvy local investors often put them to work:

• Buy and rehab a fixer-upper — You're purchasing a distressed single-family in Baltimore or an outdated duplex in Dundalk. Instead of tying up all your cash, you use a hard money loan for acquisition and renovation.

• Refinance a cash purchase and renovate — You found an off-market gem in Frederick and paid cash to close fast. Now, you want to free up capital and fund the renovation through a hard money refinance.

• Refinance an existing loan and complete repairs — Maybe your private lender for a rental in Columbia wants to be repaid, but you still need funds and time to finish your rehab and execute your exit.

• Purchase without renovating — You buy an under-market-value property in Silver Spring and plan to relist it immediately, as-is, for profit.

• Cash-out refinance without renovation — You bought a townhouse in Bowie at a great price and want to tap into your equity to fund your next investment.

• Refinance post-rehab without further improvements — You’ve already improved a property in Salisbury, but need time to sell or refinance it properly. A hard money loan gives you breathing room.

How it works

Every Maryland hard money loan from OfferMarket includes two potential components:

• Initial Advance — This is the portion of the total loan amount used to fund the property purchase. It’s wired to the title company at settlement and is especially useful in competitive markets like Montgomery County where speed is essential.
• Construction Holdback — This covers the rehab budget for the property. Funds are distributed to you through a draw process as work is completed.

Maryland investors have flexibility. If you only need funds for renovations on a property you already own—say a rehab project in Annapolis—you can opt for just a construction holdback. Alternatively, if you don’t plan to improve the property, you can use only an initial advance.

Most investors across Maryland prefer using both components to stretch their capital and boost returns. Some, especially experienced rehabbers in cities like Baltimore or Gaithersburg, might self-fund the renovation while using a hard money loan only for acquisition. Others who’ve paid cash upfront may seek a 100% rehab budget to finance renovations exclusively.

As an investor, your exit strategy plays a major role in structuring your hard money loan. In Maryland’s dynamic housing market, having a flexible plan is key.

You might begin a project in Ellicott City planning to BRRRR—Buy, Rehab, Rent, Refinance, Repeat—but decide to sell instead when the resale value looks too good to pass up.

Conversely, you might intend to flip a home in Hyattsville, but the market shifts and rental demand offers a better ROI. You adapt by holding the property and refinancing into a DSCR loan with a manageable prepayment structure.

The takeaway? Maryland real estate investors benefit most from deals with dual exit strategy potential—where both a flip and a hold make financial sense. This approach safeguards your investment no matter how the local market evolves.

Who uses hard money loans?

We work with a broad range of investors across Maryland:

• Fix-and-flip investors – These are the rehabbers in Baltimore City or Lanham who purchase distressed properties, renovate them quickly, and sell for a profit.
• BRRRR investors – These are investors throughout counties like Anne Arundel and Harford, building rental portfolios by rehabbing properties and refinancing into long-term debt.

Many of our clients blend both strategies depending on the project. Some rentals start as flips, and vice versa, based on deal flow and market conditions. This fluid approach is not only common—it’s considered best practice.

Learn about our Fix and Rent bundle—a Maryland hard money loan for acquisition and renovation, paired with a discounted DSCR loan for the refinance.

Hard Money Loan Program Guidelines

Project Eligibility

Our mission in Maryland is to help you grow your real estate portfolio while carefully managing your risk. We’re proud that fewer than 0.5% of the hard money loans we’ve issued have ever gone into foreclosure—a stat that reflects both our lending discipline and your success.

For newer investors in areas like Glen Burnie or Waldorf, we advise starting with light to moderate rehabs. Extensive projects—those with high budgets or complex construction—are better suited for experienced borrowers.

Even veteran investors can be derailed by drawn-out permitting processes or labor delays. That’s why OfferMarket partners with you not only as a capital provider but also as a strategic advisor and risk manager.

Below, you'll find our rehab scope classification system and eligibility matrix tailored for safe, scalable investing.

Initial Advance

How much we fund at purchase (your initial advance) depends on your experience, credit, and the project specifics. For example, we offer extra leverage to licensed Maryland Realtors, contractors, and engineers.

If the property in question—say a townhouse in Rockville—has a contract price above our appraised As Is value, we’ll base your initial advance on the lower of the two.

Your intended exit also impacts the funding amount. Planning to sell? You’ll need a projected 30% profit and a minimum $15,000 gain. Planning to refinance? Your post-repair DSCR must be at least 1.1.

For rural deals—such as properties in Western Maryland—more experience is required, and leverage will be reduced to account for liquidity risks.

Experience-based Tiers

Initial Advance by Tier

(*) 85% available on exception basis for borrowers with excellent credit and liquidity.

Adjustments to Initial Advance

Rehab Scope Classification

We use a clear framework to classify the scope of your renovation project. This allows us to manage risk effectively while providing Maryland investors with appropriate leverage based on experience level and project complexity.

A “lopsided deal” might be something like acquiring a rundown rowhome in West Baltimore for $20,000 with a $60,000 renovation scope. These require additional scrutiny.

Rehab scope eligibility

Your ability to take on larger or more complex renovations in Maryland depends on your experience tier. We recommend investors start with light or moderate projects—like cosmetic upgrades in Laurel or Capitol Heights—before tackling full gut rehabs.

LTARV Limits

Loan-to-after-repair-value (LTARV) ratios help ensure projects remain within safe leverage limits. These vary based on your experience level and the rehab scope.

These limits ensure that even experienced investors in places like Charles County or Howard County have meaningful equity in riskier, larger-scope projects.

LTFC Limits

Loan-to-full-cost (LTFC) caps apply to "Extensive" rehabs—projects where the total budget exceeds the purchase price. These are high-risk and require borrower skin in the game.

For example, if you're in Tier 3 and renovating a deeply discounted property in Hagerstown with a total budget exceeding its purchase price, the max OfferMarket can fund is 85% of total costs.

Example: No Experience

Example: No Experience, Excellent Credit

Example: 5 Experience

Refinance using As Is value instead of Cost Basis for Initial Advance

If you’re refinancing a seasoned Maryland rental—perhaps in Essex or Aberdeen—you may qualify for funding based on its current market value, rather than your cost basis.

To qualify:

• Property must be habitable (C4 or better)

• Must be seasoned for at least 3 years

• No default interest or late fees on payoff letter

• Credit score 680+ and Experience Tier 3+

• Solid comps in the neighborhood to support As Is value

• Supportive use case (e.g. tenant just moved out and you’re ready to renovate)

This strategy helps seasoned investors tap into built-up equity and finance the next phase of their project.

Transactions involving wholesalers, price run-ups

If you’re working with a wholesaler in Maryland, OfferMarket can include up to 20% of the original purchase price as part of your cost basis for the initial advance.

For example:

• A-B Contract (wholesaler + owner): $100,000

• B-C Contract (your price): $125,000

• As Is Value: $125,000

• Value basis for loan: $120,000

Guidelines:

• Must be arm’s length

• Price run-up cannot exceed 20%

• Wholesaler must provide A-B and B-C contracts

• MLS-listed deals may not qualify

• We do not finance finder’s fees or referral fees

Construction Holdback

Your construction holdback is designed to fund the rehab portion of your Maryland investment project. Funds are released based on completed progress and submitted through our streamlined draw process.

Whether you're renovating a duplex in College Park or a rowhouse in Baltimore, you'll be reimbursed for verified work performed according to your submitted scope of work.

If you’re self-funding the rehab or only need acquisition funding, you may decline the construction holdback portion entirely. However, for projects where OfferMarket provides both acquisition and rehab capital, this component is a vital part of your financing.

Keep in mind: if your loan is $100,000 or more, you’ll only pay interest on the funds you’ve drawn (“as disbursed” basis). This makes our program especially appealing for phased renovations across Maryland.

Appraisal and In-house valuation

Every OfferMarket hard money loan in Maryland requires a valuation. Based on the property, experience tier, and credit score, we may order a:

• 3rd-party interior appraisal

• 3rd-party exterior appraisal

• In-house valuation

If you're an experienced investor in Baltimore County with a Tier 4 rating, 720+ credit score, and a straightforward rental project, you may qualify for our efficient in-house valuation.

Exterior appraisal

Exterior-only appraisals may be used for select property acquisitions in Maryland such as:

• Bank-owned (REO) sales

• Foreclosure auctions

• Sheriff sales

• Online auction platforms

• Bankruptcy sales

The appraisal must be dated within 120 days of settlement. If it’s older than 120 days but within 180 days, a recertification is required.

Interior appraisal

Any scenario not listed under “Exterior appraisal” or “In-house valuation” requires a full interior appraisal. This applies to the majority of investor transactions across Maryland.

OfferMarket will order the appraisal and share the payment invoice with you. We require payment prior to completing loan processing.

Appraisal transfer

If you’ve already ordered an appraisal via an approved AMC for a property in Maryland and want to transfer it to us, we accept transferred appraisals that meet these conditions:

• Ordered via approved appraisal management company

• Less than 180 days old at loan closing

• Recertified if 120–179 days old

We’ll need:

• Signed transfer letter with AIR compliance certification

• Appraisal PDF and XML files

• Invoice showing payment

Scenario: Stabilized Hard Money Loan

If you’ve got a property in Bowie or Elkridge that’s rent-ready or turnkey, you may qualify for a stabilized hard money loan. This lets you borrow against the As Is value without needing rehab.

Key Loan Details

Extensions

Maryland hard money loans are designed for short-term use—typically 12 to 24 months. Delays in zoning, permitting, or construction can lead to the need for an extension, which is why we coach our clients to avoid risky delays and scope creep.

To reduce your risk of needing an extension:

• Avoid contractors without solid references

• Don’t overreach with rehab if you’re inexperienced

• Avoid tenants with long leases or holdover situations

• Ensure your deal has a dual exit strategy: flip or rent

These strategies are especially important in municipalities like Baltimore City or Prince George’s County where permitting timelines can be unpredictable.

Extension Limits

Extension Terms and Fees

You must also ensure that your builder’s risk insurance remains active during the extension period.

Ineligible Property Types

Not every property qualifies for OfferMarket’s Maryland hard money loan program. We focus strictly on non-owner occupied 1–4 unit residential investment properties. The following property types are ineligible for funding under this program:

• Mixed-use properties

• 5+ unit multifamily buildings

• Condotels or co-ops

• Manufactured or mobile homes

• Commercial properties

• Cabins or log homes

• Properties with oil or gas leases

• Operating farms, orchards, or ranches

• Vacation or seasonal rentals

• Unique, exotic, or luxury properties

• Properties accessed via unpaved or dirt roads

This means a fourplex in Hyattsville is eligible, but a mixed-use storefront with apartments above in Annapolis is not. If your project falls outside the box, we may still be able to help through other lending programs—just not under our standard hard money offering.

Exception Scenarios

We recognize that real-world deals are often messy. In some cases, we can approve Maryland hard money loans under the following exception conditions—subject to additional underwriting and documentation:

• Guarantor credit scores between 660–679

• Leasehold (ground rent) ownership structures

• Small SFRs between 500–699 square feet

• 2–4 unit properties with units sized 400–499 sqft

• Funding initial advance based on As Is value (if > cost basis)

• Non-arm’s-length transactions

• Financed interest payments (see details below)

These exception cases are considered carefully, especially in jurisdictions like Baltimore where ground rent is common, or in places like Easton where older homes may be unusually small.

Borrower and Guarantor Requirements

OfferMarket hard money loans in Maryland must be made to business entities. The primary guarantor(s) must meet a set of eligibility criteria:

Credit and Background Items

Our goal is to lend safely and responsibly. We assess your credit profile and background with care and may require additional reserves or documentation based on findings.

Maryland-specific context: ground rent (leasehold title) and legacy tax liens are relatively common in certain Baltimore neighborhoods, and we frequently review those situations.

Interest Reserves

Some loans require interest reserves—funds set aside at closing to cover future interest payments. If reserves apply, they’ll be collected upfront and held in escrow.

Reserves help protect both lender and borrower by ensuring loan performance even during project delays.

Financed Interest Payments

For eligible Maryland borrowers, OfferMarket may allow interest to be financed—rather than paid monthly—especially if you’re managing cash flow carefully during renovations.

For example:

• Loan amount: $100,000

• Interest rate: 12%

• Months held: 9

• Accrued interest: $9,000

• Payoff: Principal $100K + Interest $9K = $109K total payoff

This approach helps you avoid maxing out personal credit cards or running short on materials mid-project. Interest accrues and is paid at exit—flip or refi.

Property Sourcing Guidelines

When sourcing investment properties in Maryland—whether from the MLS, wholesalers, or auctions—you’ll need to meet certain documentation and eligibility standards:

• New market: GC agreement or LOE required

• Wholesale or price-ramp deals: Extra review and documentation

• Condos or conversions: Permits or letters from architect/engineer required

• Required docs: Purchase contracts, settlement statements, payoff letters, track record, LLC documents

Whether you're acquiring in a D.C. suburb like Takoma Park or rehabbing in Westminster, transparency in the deal is critical to loan approval.

Insurance Guidelines for Hard Money Loans

Protecting your investment property—and yourself—is essential. Maryland investors are required to carry Builders Risk insurance (aka Fix & Flip insurance), which covers:

💡 Maryland Pro Tip: After closing, immediately install smoke detectors, locks, and cameras—especially in vacant properties. Insurance policies may deny claims if basic security steps aren't followed.

Frequently Asked Questions

What states does OfferMarket fund hard money loans in?

OfferMarket provides hard money loans across nearly the entire United States, with a few exceptions. We actively lend in Maryland and have extensive experience working with investors in cities such as Baltimore, Columbia, Silver Spring, Bowie, and beyond. Whether your investment property is located in an urban rowhouse corridor, a suburban cul-de-sac, or a small-town neighborhood, we’re equipped to provide financing.

We currently do not fund hard money loans in the following states: Alaska (AK), Arizona (AZ), Hawaii (HI), Minnesota (MN), North Dakota (ND), Nevada (NV), Oregon (OR), South Dakota (SD), Utah (UT), and Vermont (VT). These exclusions are based on either licensing regulations or strategic market decisions.

If you're investing in Maryland, you're in a strong position—we fund hundreds of transactions annually in the state and understand local regulations, market dynamics, and pricing trends that impact your bottom line.

Can I do more than one hard money loan at a time?

Yes, absolutely. In fact, it’s quite common for Maryland real estate investors to maintain multiple hard money loans simultaneously, especially those scaling their portfolios or flipping multiple properties in parallel.

For example, you might have an active flip in Glen Burnie and a BRRRR project underway in Gaithersburg. OfferMarket can fund both deals, provided your liquidity, credit profile, and execution pace align with responsible borrowing practices.

That said, we place a high value on risk management, both for your sake and ours. If we determine that taking on another loan could strain your capital reserves or delay your projects, we’ll communicate that candidly. Our goal is to help you grow sustainably, not stretch too thin and jeopardize your success. We also consider your past performance with OfferMarket loans and completion timelines when evaluating new funding requests.

Are hard money loans considered commercial?

Yes. All hard money loans issued through OfferMarket are classified as commercial loans. This designation is based on the fact that:

1. Loans are made strictly to business entities, such as LLCs or Corporations—not individuals.

2. The intended use of the loan must be for a business purpose, specifically related to real estate investing, such as buying, renovating, flipping, or holding rental properties.

3. The subject properties must be non-owner occupied—you cannot live in the property being financed.

In Maryland, this means you can finance a 4-unit property in Salisbury under your LLC for a flip or long-term rental, but you cannot obtain a hard money loan for a home you plan to occupy.

This commercial designation has regulatory benefits too. Unlike consumer loans, commercial loans are exempt from certain federal consumer lending rules such as TRID or RESPA. That allows for faster processing, simplified documentation, and quicker closings, which are all advantages to investors who need speed in a competitive real estate market.

What is the minimum loan amount?

The minimum loan amount you can apply for with OfferMarket is $25,000. This threshold is especially helpful for investors pursuing lower-priced properties, which are common in parts of Maryland such as the Eastern Shore, Baltimore City, and certain Western Maryland towns.

We understand that not every investment deal requires six figures in funding, and we aim to make smaller projects accessible to new investors or those looking to preserve cash for rehab. Whether you're acquiring a $40,000 off-market rowhome in East Baltimore or a $90,000 single-family in Cumberland, OfferMarket’s platform is designed to support deals of all sizes—provided the numbers work.

Which property types are eligible for a hard money loan?

OfferMarket funds non-owner occupied 1–4 unit residential properties. These include:

• Single-family residences (SFRs) – the most common property type for flips or rentals.

• 2–4 unit multifamily buildings – perfect for house hacking or BRRRR deals.

• Townhomes – including historic townhouses found in Maryland cities like Annapolis and Frederick.

• Warrantable condominiums – typically newer construction or well-maintained properties part of compliant condo associations.

• Planned Unit Developments (PUDs) – developments governed by HOA-like rules and common amenities.

Ineligible properties include anything outside of this scope, such as mixed-use, 5+ unit multifamily, or commercial buildings.

If you're unsure whether your property qualifies, we’re happy to review the deal structure and advise. Our local Maryland experience means we can usually identify eligibility quickly—even if your property is in a less conventional neighborhood or was recently converted from another use.

How do you calculate Loan-to-Value (LTV)?

For hard money loans, we calculate value-based ratios in two main ways:

1. LTV (Loan-to-Value) is based on the property's current, As Is value. It is primarily used for refinances and stabilized loans. This is calculated as:

   LTV = Initial Advance ÷ As Is Value

   For example, if the As Is value of your rental in Hagerstown is $160,000 and you’re requesting a $112,000 loan, your LTV is 70%.

2. LTARV (Loan-to-After-Repair Value), also known as ARLTV, is used for most hard money loans involving renovation. It reflects the loan amount as a percentage of the property’s projected value after the rehab is complete.

   LTARV = Total Loan Amount ÷ ARV

   So if your total loan (initial + rehab) is $120,000 and the ARV of the renovated home in Waldorf is $160,000, your LTARV is 75%.

We determine the ARV using either an in-house valuation or third-party appraisal. Your experience tier, project scope, and exit strategy determine how much leverage we’ll approve.

What are the credit requirements?

To qualify for a hard money loan in Maryland through OfferMarket, borrowers must meet the following credit guidelines:

• Minimum FICO score of 680 is required for all personal guarantors of the loan.

• In select cases, scores between 660 and 679 may be considered under our exception program—this typically involves additional interest reserves or conservative leverage.

• We use a tri-merge credit report, and your qualifying score is either the middle of three scores or the lower of two if only two are returned.

• We evaluate each individual guarantor in your LLC or Corporation who will be signing for the loan. If someone in your entity is not providing a personal guaranty, we do not consider their credit.

Keep in mind, your credit profile is just one piece of the puzzle. Strong liquidity, experience, and project fundamentals can balance out an average credit score in many cases. Conversely, even a high credit score won’t overcome poor liquidity or a poorly structured deal.

What are the experience requirements?

OfferMarket does not require prior real estate experience to qualify for a hard money loan in Maryland. First-time investors are welcome—and we regularly fund entry-level deals for new borrowers.

That said, your experience does influence how much leverage we can offer. Here’s how it works:

• We categorize borrowers into Experience Tiers based on the number of completed, verifiable rehab projects within the last 5 years.

• The more projects you’ve done, the more generous our terms: higher initial advance, access to heavy or extensive rehab eligibility, and better LTARV limits.

• For first-timers, we encourage light or moderate rehabs to minimize risk and improve loan terms over time.

So whether you’ve completed zero flips or you’re on your tenth rental acquisition, we’ll assess your tier, offer clear guidance, and help you structure the deal for success.

Does being a wholesaler count toward experience?

No, participating in real estate transactions as a wholesaler does not count toward your experience tier in our underwriting process.

While wholesaling is a valuable part of the investment ecosystem—especially in Maryland markets like Prince George’s County and Baltimore—being a wholesaler means you were not financially responsible for:

• Purchasing the property

• Completing the rehab

• Managing contractors

• Handling resale or refinancing

Our experience tiers are based on the successful completion of rehab projects, where you had direct financial exposure. If you want to improve your tier status, you’ll need to take on actual renovations under your entity—ideally documented through HUD statements, scopes of work, and before/after photos.

What documentation is required?

OfferMarket’s Loan File system is built to make the documentation process easy and efficient for Maryland investors. Whether you're buying a distressed single-family in Dundalk or refinancing a triplex in Takoma Park, your loan file will guide you through each required step.

Documentation is categorized by transaction type:

Purchase Transaction Requirements

Refinance Transaction Requirements

These documentation requirements apply across the state—from Baltimore to Bel Air, Cumberland to Charles County. Uploading complete and accurate docs early in the process ensures smooth and fast funding.

Are there special requirements for loans over $1M?

Yes. If your Maryland project requires a hard money loan above $1,000,000, additional underwriting criteria will apply. These larger loans involve higher financial risk and thus require stronger experience, market evidence, and borrower credentials.

In Maryland, this means if you're planning a major rehab in a high-priced market like Bethesda or Potomac, you'll need solid comps and a proven track record. Our team will assess everything from square footage and finish level to days on market for recently sold properties in the area.

Glossary of Key Terms

Instant Hard Money Loan Quote

At OfferMarket Capital LLC, we specialize in helping Maryland real estate investors move fast, scale up, and build wealth. Whether you’re sourcing deals in the Baltimore metro area, Prince George’s County, or beyond, we’re ready to back your next project with the capital you need and the support you deserve.

Thousands of investors across the country rely on OfferMarket every month for:

💰 Private lending
☂️ Insurance rate shopping
🏚️ Off market properties
💡 Market insights

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