HELOC Loans in Maryland

Home Equity Line of Credit (HELOC)

Maryland homeowners can take advantage of rising property values and strong equity positions by using a HELOC (home equity line of credit). Whether you're renovating in Baltimore, funding tuition in College Park, or consolidating debt in Silver Spring, a HELOC gives you access to a revolving credit line. You can borrow funds as needed during a draw period, typically with variable interest rates. Most Maryland lenders require 15%–20% home equity and a credit score of at least 620. For those who want fixed monthly payments and a lump sum, home equity loans are also widely available. Maryland borrowers can compare options through local banks, credit unions, and fintech lenders.

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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

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Frequently Asked Questions

What is a HELOC and how does it differ from a home equity loan?

A HELOC in Maryland is a revolving line of credit secured by your home’s equity. You can draw funds during the draw period and repay them over time. A home equity loan, by contrast, offers a lump sum up front with fixed interest and payments.Choose a HELOC for flexibility and phased spending. Choose a home equity loan for large, one-time expenses and structured repayment. Both can serve different needs depending on your financial goals.

How do HELOC rates work and what affects the interest rate?

HELOC rates in Maryland are typically variable and tied to the prime rate. Your personal rate is influenced by your credit score, loan-to-value ratio, income, and the lender you select. Local credit unions in Maryland may offer competitive rates, fixed-rate conversion options, or introductory APR discounts. Comparing lenders is essential to securing the most favorable terms and understanding any associated fees.

Can I qualify for a home equity loan in Maryland with low credit?

Yes, Maryland residents with lower credit scores may still qualify for a home equity loan, especially if they have strong equity and reliable income. While most lenders look for a score of 620 or higher, some institutions may approve applicants in the 580–620 range.Regional banks and credit unions are often more flexible than large national lenders. Be prepared to provide detailed income documentation and accept a higher interest rate if your credit is below average.

How much equity do I need in my home to get a HELOC?

In Maryland, most lenders require between 15% and 20% equity to approve a HELOC. This means your current mortgage should not exceed 80%–85% of your home’s market value.Lenders will also review your credit score, income, and monthly debt obligations. Properties in high-demand areas like Montgomery or Howard County may appraise higher, giving homeowners access to larger credit lines.

Are home equity loans in Maryland better for large expenses?

Yes, home equity loans in Maryland are well-suited for large, single-use expenses such as home remodeling, debt repayment, or medical procedures. These loans offer fixed rates, a one-time disbursement, and stable monthly payments.If your expenses will occur over time or are unpredictable, a HELOC might be a better fit. Maryland homeowners should choose based on their financial priorities and the size and timing of the expense.

What are typical equity rates and loan terms in Maryland?

In Maryland, HELOC APRs usually range from 7% to 10%, depending on your credit score, equity, and lender. HELOCs often have a 10-year draw period and a 10- to 20-year repayment window.Home equity loans in Maryland typically offer fixed interest rates with terms from 5 to 30 years. Local lenders and credit unions may provide discounts for existing customers or promotional rates for new applicants. Compare offers to find the best fit for your situation.

Exploring options outside Maryland? Compare HELOC loans in Virginia , Pennsylvania , Delaware , and Washington , D.C....