Hard Money Loans for Short-Term Rentals in Maryland

Frequently Asked Questions

What are hard money loans and how do they work for real estate investors?

Hard money loans are short-term, asset-backed loans that prioritize property value over borrower qualifications. Maryland investors use them for flipping homes, acquiring short-term rentals, or refinancing properties that banks won’t finance. Terms usually range from 6 to 36 months, with interest-only payments and quick closings. Since the loan is underwritten based on the deal—not personal credit or tax returns—borrowers can act quickly in competitive markets. If you have a solid property and exit strategy, hard money is a valuable financing tool for fast-moving investments.

When should an investor consider using a hard money loan instead of a conventional loan?

Investors should consider hard money loans when time is limited, or a deal doesn’t meet traditional loan criteria. In Maryland, these loans are often used for fix-and-flips, auction properties, or acquisitions through LLCs. They’re also ideal when documentation is incomplete or when credit scores may fall short. Because approval hinges on the value of the asset and exit plan, not personal income, hard money loans allow you to move fast—helping you secure deals that conventional lenders would delay or deny.

What makes hard money different from other types of financing?

Hard money financing is asset-focused and streamlined, making it much faster than traditional loan options. While banks rely on credit checks, employment history, and tax documentation, hard money lenders base their decisions on the property's value and your business plan. Maryland investors often turn to hard money when traditional lenders can’t fund a property due to condition, zoning, or borrower profile. Though interest rates are higher, the access to fast capital and flexible terms makes hard money an essential resource for serious investors.

What are the typical loan terms for a hard money loan?

Maryland hard money loans typically offer terms between 6 and 36 months and feature interest-only payments. Loan-to-value limits usually reach up to 85% for purchases and 80% for refinances. Rates are higher than traditional financing, but the benefit is speed and simplicity. Most lenders charge origination fees and may require reserves depending on the deal’s complexity. These loans are structured for short-term investment goals, such as property rehabs or seasonal rentals, where a quick close and rapid execution are key to profitability.

How quickly can a hard money lender close a deal?

Hard money loans in Maryland can close in as little as 3 to 10 days. This rapid timeline makes them ideal for competitive bids, distressed property sales, or time-sensitive investment opportunities. Since approval focuses on the asset and not on personal financial documentation, borrowers skip the slow underwriting process of conventional loans. For Maryland investors trying to secure deals in fast-paced markets, hard money offers the agility needed to act decisively and maximize investment returns.

Can I get a hard money loan in Maryland with poor credit or no income documentation?

Yes. Hard money loans in Maryland are accessible to investors with poor credit or limited income documentation. These loans are underwritten based on property value and the borrower’s plan—not their tax history or credit score. While Maryland enforces lending regulations, business-purpose loans like these are often exempt from many consumer protections. Still, it's essential to choose a lender who complies with state usury laws and provides clear, upfront terms to ensure a secure and compliant transaction.

Explore hard money loans and other Airbnb loans in neighboring states like Virginia and Pennsylvania to build your strategy beyond Maryland.