DSCR loans in Maryland qualify an investment property on its rent roll, not your W-2 or tax returns. Investors who buy and stabilize across Baltimore and Prince George’s County use permanent DSCR debt to pull equity back out, add doors, or hold long-term after a rehab.
Maryland DSCR loan parameters (2026)
| Parameter | Maryland range |
|---|---|
| Rates | high-7s to low-10s (30-yr fixed or ARM) |
| LTV — cash-out | Up to 75% on stabilized rentals |
| DSCR minimum | 1.0–1.25 |
| Loan amounts | $125K–$2M |
| Property types | SFR, 2–4 unit, select condos and small multifamily |
Acquisition and rehab capital: hard money lenders Maryland and fix and flip loans Maryland.
How taxes shape Maryland DSCR
The number that decides most Maryland DSCR files is property tax: an effective rate of ~1.05% (state and county levies; Baltimore City carries a high rate). On a $180,000 appraised value that is roughly $158/mo in the expense stack — understate it and the ratio fails at refinance even when rent looks strong. On the income side, Maryland levies a state income tax (~2%–5.75% + county), so state plus county (“piggyback”) income tax.
Where DSCR clears: Maryland metros
| Metro | Typical basis | Rent band | Local diligence |
|---|---|---|---|
| Baltimore | $180K–$320K | $1,400–$1,950 | rowhome BRRRR with lead-paint abatement in draws |
| Prince George’s County | $320K–$460K | $2,000–$2,700 | DC-commuter demand; verify local rent rules |
Match the product to the rent roll — basis and rent diverge sharply across these metros.
Foreclosure and landlord law in Maryland
Foreclosure in Maryland is non-judicial — primarily non-judicial via assent-to-decree; timeline is moderate. On the leasing side, rent stabilization exists in several jurisdictions (e.g., Montgomery County, parts of PG). Underwrite vacancy and turn times to the local ordinance, not a national average.
Insurance and local risk
Underwrite local risk honestly in Maryland:
- Lead-paint abatement on Baltimore rowhomes (registration and inspection required)
- Chesapeake flood overlays
Worked example: Baltimore BRRRR-to-DSCR
- Acquire + rehab a value-add SFR in Baltimore with bridge capital (about $75,000 of scope)
- Stabilize at market rent — roughly $1,950/mo gross on a 12-month lease
- Appraisal at $180,000 post-rehab, supported by sold comps within 90 days
Monthly NOI sketch (Maryland-realistic):
- Gross $1,950; vacancy 6% (−$117); effective $1,833
- Property tax $158 (~1.05% on $180,000), insurance $257, maintenance $151, management $156
- NOI ~$1,111/mo
At 75% LTV the rent clears a 1.05+ DSCR, so the full cash-out is on the table — debt service runs about $1,037/mo. Strong coverage leaves room for reserves.
Documentation Maryland DSCR lenders expect
- Entity documents — LLC operating agreement and EIN for vesting
- Rehab scope and draw history if exiting a BRRRR
- Insurance declarations at replacement cost (including flood where applicable)
- Executed leases (12-month preferred) with deposit proof
- Trailing Maryland property tax bill plus a stress buffer for reassessment
- Two months of rent-collection proof or a signed lease with first payment
No-seasoning options may apply on documented BRRRR rehabs — bring before/after rent rolls to pre-qual.
Related Maryland programs
- Hard money lenders Maryland — bridge and BRRRR acquisition
- Fix and flip loans Maryland — resale-focused ARV math
- What kind of loan do you need — product picker
Maryland DSCR FAQ
What DSCR ratio do Maryland lenders want?
Most Maryland DSCR programs clear at 1.0–1.25 depending on LTV, credit, and reserves. With ~1.05% effective property tax in the expense line, the achieved ratio is sensitive to how honestly you model taxes and vacancy.
Can I refinance out of a Maryland rehab with no seasoning?
Often yes — when the rehab is documented and the property is leased, select programs allow limited or no seasoning. Acquire with Maryland hard money or fix and flip capital, then exit to DSCR once the rent roll is real.
Does Maryland have rent control that affects DSCR?
Rent stabilization exists in several jurisdictions (e.g., Montgomery County, parts of PG). Verify the rule for your specific Baltimore submarket before underwriting NOI.
Pre-Qualify for Maryland DSCR · (833) 264-7776
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. All loans are subject to full underwriting. Jaken Finance Group only finances non-owner occupied investment properties.