Maryland DSCR Loans for STR Financing
Grow Your Portfolio with DSCR Loans
Whether you're financing STRs in Ocean City, long-term rentals in Baltimore, or suburban investments in Annapolis, our DSCR loans
give Maryland investors the flexibility and competitive rates needed to grow. DSCR loans qualify you based on property income rather than personal earnings, making it easier to scale. We assess whether your rental cash flow can fully support the loan, not your W-2s or credit history. Maryland’s blend of strong urban rental markets and vacation destinations creates diverse opportunities for real estate investors. Our streamlined process lets you move quickly on deals and expand your portfolio without traditional lending roadblocks.
How to qualify
To obtain a quote, we will need the following information:
Property Value and
Purchase Price
Down Payment
Amount
Credit Score
Asset Types
- Single Family Homes
- Townhomes
- Condos
- 2 - 4 Units (Duplex, Triplex, Quadplex)
- Multi-Family: 5 - 8 Units
- Mixed-Use: 2 - 8 Units
- Multi-Family: 9+ Unit
Loan Terms
- Loan Sizes:
$100k up to $3.5 Million (Larger loan sizes available on a case by case basis)
- Purchase LTV:
Up to 85%
- Rate & Term Refinance LTV:
Up to 80%
- Cash Out Refinance LTV:
Up to 80%
- Amortization:
30 Year % 40 Year Amortization Options Available
- Term Lengths:
5/6 ARMs, 7/6 ARMs, 10 Year Interest Only, 30 Year Fixed & 40 Year Fixed
- Floor Rate:
5.50% (subject to change daily due to market volatility)
- Full Recourse
with personal guarantee required for all borrowers with majority ownership (typically 20%+ or 25%+ if closing in an Entity)
- DSCR Requirement: 1.00x or greater depending on loan size and property type. Sub-1.00x DSCR and NO DSCR options available.
- Vesting:
Lending to Individuals, LLCs, and Corporations. Trusts Allowable on a Case by Case Basis.
- Average Time to Close:
14 to 35 days
Wondering if you qualify for investment property financing in your area?
We offer lending services in all 50 states!
Frequently Asked Questions
What is a DSCR loan and how does it work for Maryland real estate investors?
A DSCR loan (Debt Service Coverage Ratio loan) is a type of asset-based financing that qualifies borrowers based on the income their property generates, not personal tax returns or employment history. Lenders calculate whether the rental cash flow is sufficient to pay for the loan’s monthly obligations. For Maryland investors targeting rental opportunities in Baltimore, Annapolis, or Ocean City, this approach offers a faster and more flexible way to secure financing—especially for those looking to grow real estate holdings without being slowed by income verification requirements.
How is DSCR calculated in a typical loan scenario for Maryland investors?
Maryland investors calculate DSCR by dividing a property’s net operating income (NOI) by the total annual debt service, which includes mortgage payments, taxes, and insurance. For example, if a Maryland rental earns $108,000 annually and the debt service totals $90,000, the DSCR would be 1.20. This means the property generates 20% more income than needed to repay the loan. While a 1.00 DSCR is the typical minimum, many Maryland lenders prefer a higher ratio for better terms—especially in Baltimore, Annapolis, and Frederick. Understanding how DSCR is used in Maryland helps real estate investors identify profitable properties and qualify for scalable, flexible financing.
What is considered a good DSCR ratio when applying for financing?
A strong DSCR in Maryland is generally 1.20 or above. While some lenders may allow a 1.00 DSCR, that’s often the floor for riskier or more complex deals. A 1.20 ratio signals financial health and improves loan approval chances. Whether you're investing in Baltimore, Frederick, or Silver Spring, a higher DSCR in Maryland leads to better loan terms, reduced reserves, and easier underwriting. Understanding what counts as a good DSCR in Maryland helps investors confidently evaluate deals and expand their rental portfolios with greater flexibility.
Can I qualify for a DSCR loan if my personal income is limited?
Yes, you can qualify for a DSCR loan even if your personal income is limited. DSCR loans, often referred to as Airbnb loans when used for short-term rental properties, are designed to approve borrowers based on the income the property generates—not personal W-2s, tax returns, or debt-to-income ratios. Lenders calculate the property's debt service coverage ratio to determine if the income is sufficient to support the loan. As long as the DSCR meets the required threshold—usually 1.00 or higher—you can often be approved regardless of personal income. This makes Airbnb loans ideal for self-employed investors, business owners, or anyone scaling a rental portfolio without relying on traditional underwriting standards.
How does a lender evaluate rental income when approving a DSCR loan?
In Maryland, lenders approve DSCR loans by analyzing the income generated by the property rather than your personal financials. Maryland borrowers provide documents such as lease agreements, rent roll summaries, or market rent analyses to establish income. This figure is used to calculate the DSCR by dividing it by the property’s annual loan obligations. A DSCR of 1.00 or greater is typically required for approval. DSCR loans in Maryland are ideal for investors who may not qualify under traditional guidelines. Understanding how rental income is evaluated in Maryland helps investors present stronger applications and access flexible, property-driven financing.
What’s the minimum debt service coverage ratio required for approval?
In Maryland, most DSCR lenders require a minimum ratio of 1.00 to approve a loan, ensuring the property generates enough rental income to cover its debt obligations. In some Maryland cases, a DSCR of 0.75 may be considered, though that usually demands strong credit or reserve backing. A DSCR of 1.20 or more is often preferred in Maryland, particularly in markets like Baltimore or Silver Spring. DSCR loans in Maryland allow investors to qualify using property performance rather than tax returns. Understanding the minimum DSCR requirements in Maryland can help investors secure better loan terms and minimize underwriting issues.
Who should consider using a DSCR instead of a traditional loan?
These loans are perfect for self-employed individuals, LLCs, and investors managing multiple properties. In Maryland, DSCR loans allow borrowers to qualify using rental income instead of personal financial documents. Whether you're investing in Baltimore, Silver Spring, or coastal towns, Maryland real estate investors appreciate the streamlined approvals and flexibility DSCR financing offers. Maryland borrowers can grow their portfolios efficiently without traditional mortgage roadblocks.
