DSCR loans in Maryland
Buy or refinance a Maryland rental by qualifying on the property’s income — not your tax returns, W-2s, or personal debt-to-income. Andes originates business-purpose DSCR loans across the Montgomery County ring, Baltimore, and Frederick.
We have a large suite of DSCR loans for our investor clients in Maryland – from purchase, rate-term and cash-out refinances to first and second lien HELOC and HELOANs.
- No tax returns · no personal DTI
- From 640 credit scores
- Business purpose · available in 46 states
- Below-1.0 DSCR options
What is a DSCR loan in Maryland?
DSCR or debt coverage ratio is the property’s monthly rent divided by its full payment including principal, interest, taxes, insurance, and any HOA or ground rent (PITIA).
When the property meets a 1.0 DSCR, the rent covers the payment or “breaks even” on a monthly basis. Not bad.
Above a 1.0 and the property cash flows above 1.0 it cash-flows. That number, not your personal income, qualifies the loan. For the full details on how it works, see our national DSCR loan guide.
A quick Maryland note: Maryland is really two investor markets. In the DC-adjacent Montgomery ring, high prices push many deals under 1.0. In Baltimore, cheap prices come with the highest property-tax rate in the state and, on many rowhomes, ground rent. Both change the ratio — we break them down below.
Example: a single-family rental in Silver Springs rents for $3,500/mo — while the full payment on a $449,950 purchase with 25% down runs about $3,000/mo. That is a 1.16 DSCR: the property cash flows by an additional 16%. Very good. This gets you excellent terms on your DSCR deal.
But what if the numbers flip around and now the rent is underwater compared to the payment? Most lenders stop reading there. We don’t — a below 1.0 ratio places your file in our reduced-ratio tier, not the reject pile. We originate DSCR loans in Maryland whether the debt coverage is above 1.0, at 1.0 or below 1.0. More on that below.
The Maryland rental market right now
DSCR underwriting starts with the rent, so it’s worth seeing what Maryland rents actually do rather than trusting a listing’s description.
The chart below tracks typical asking rent for single-family homes in Baltimore, Suburban Maryland, Salisbury and Hagerstown. These figures are updated monthly from Zillow’s ZORI series, with the underlying figures in a table beneath it.
Maryland rental market · single-family
Data through Aug 2026
| Metro | Typical asking rent | YoY change | Data through |
|---|---|---|---|
| Baltimore | $2,502 | +2.4% | Aug 2026 |
| Suburban Maryland | $3,292 | +2.7% | Aug 2026 |
| Salisbury | $2,229 | +4.2% | Aug 2026 |
| Hagerstown | $1,881 | +3.5% | Aug 2026 |
Data through Aug 2026 · updated monthly · source: Zillow (ZORI)
Rent is only half the ratio. The other half is what you pay for the house — Maryland’s statewide median listing price is $425,000, and it varies widely by metro. Here is the current listing picture statewide:
Maryland housing market
Realtor.com listing data · as of August 2026
Figures are Realtor.com listing data (what sellers are asking) — not sale prices. Source: Realtor.com via FRED (Federal Reserve Bank of St. Louis). Updates monthly.
Rent figures are typical asking rent for single-family homes — Source: Zillow (ZORI). Listing figures are Realtor.com median listing prices, not sale prices, published via FRED.
Who Maryland DSCR loans fit
Andes Mortgage’s DSCR loans in Maryland are the premier avenue for investors who face the biggest issue with traditional lending: showing tax returns to proof income.
A DSCR loan skips personal income and debt-to-income entirely and focuses on the property’s cash flow instead — which is why it’s the standard tool for building a Maryland rental portfolio.
- Business owners, self-employed, and 1099 contractors
- Self-employed borrowers who write off heavily against income, or haven’t filed yet
- Out-of-state investors buying into a growth market such as Baltimore or prime real estate in Bethesda and Annapolis.
- Investors scaling past the ten-property limit that conventional financing caps you at
- Buyers targeting non-warrantable condos that conventional lenders decline outright
Want to know if DSCR is a good fit, or see what you’d qualify for? Run Mortgage Match — it takes less than 60 seconds and there’s no credit pull. Start Mortgage Match →
What are the requirements for a DSCR loan in Maryland?
Here are some details on the major requirements for Andes Mortgage’s DSCR loans in Maryland.
DSCR terms are set by the investor lending shelf, not by the state — We work with over 40 different Non-QM and DSCR lenders nationwide and we place your file where the guidelines fit. Your exact terms depend on the property, your credit, and the loan size.
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Parameter
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Andes Mortgage Maryland DSCR guidelines
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|---|---|
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Minimum credit score
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We work with as low as 640 credit score
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Max LTV — purchase (DSCR ≥ 1.0)
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Up to 85% for credit scores >700
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Max LTV — cash-out refinance
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Up to 75%
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DSCR 0.75–0.99 (reduced-ratio)
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Available — expect roughly a 5–10% LTV reduction vs. standard
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DSCR below 0.75 / no-ratio
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Available — typically to ~60–70% LTV at a higher credit score
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Loan amounts
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~$100K to $2.5M (minimum rises to ~$200K on sub-1.0 DSCR)
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Reserves
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3 months PITIA up to ~$1M; 6 months above ~$1M or on sub-1.0 DSCR
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Mortgage / rental history
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0x30x12 typical (no 30-day lates in 12 mo.)
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Property types
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SFR, PUD, townhome, 2–4 units, condos, and non-warrantable condos
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Rural property
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Allowed with up to 65% LTV
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Occupancy
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Business purpose / investment only
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Guidelines last verified: August 2026. Ranges reflect current wholesale investor guidelines and may change without notice. DSCR loans are business-purpose loans for non-owner-occupied property; this is not a commitment to lend.
DSCR rates in Maryland
Updated interest rates for DSCR loans in Maryland. Explore purchase, rate-term refinance and cash-out refinancing options with and without rate buydowns. Click build your scenario for a custom quote.
Rates as of Sep 22, 2026
These rates are a few days old — ask us for today's pricing.
Lower rate, more points
6.375%
1.625 points
Fewer points
6.875%
0.250 points
Up to 75% LTV
Lower rate, more points
6.250%
2.000 points
Fewer points
6.990%
0.125 points
Up to 75% LTV
Lower rate, more points
6.875%
1.750 points
Fewer points
7.000%
no points
Up to 75% LTV
Assumptions
- Credit score
- 760+
- Property type
- 1–4 unit investment
- Term
- 30-year fixed
- Prepayment penalty
- 3-year
- DSCR ratio
- 1.10+
- Max LTV
- 75%
Rates and points shown reflect Andes Mortgage's DSCR program ranges, synthesized from current wholesale pricing, and are illustrative, subject to change, and not a commitment to lend. Actual terms depend on a full review of your scenario.
DSCR loans are business-purpose financing priced nationally by program, so the pricing above applies across the states Andes serves — it isn't specific to Maryland.
Maryland DSCR loans under 1.0 ratio
A DSCR under 1.0 means the property doesn’t cover its own payment on paper. We see this happening when there’s a vacancy, a tax hike, an insurance renewal that ate the margin.
The good news – there is no DSCR floor with Andes. A ratio under 1.0 doesn’t get rejected, it just moves to a different tier at a lower loan-to-value. In Maryland this comes up constantly, because Montgomery-ring prices and Baltimore’s high city taxes both pull the ratio down.
The rent covers the payment. You’re on the main program — best LTVs, widest credit range, lowest pricing.
The rent falls a little short. Still very financeable — expect roughly a 5–10% LTV reduction (a bit more down) in exchange for the lower ratio.
Even a property that doesn’t cash-flow on paper can be financed through a no-ratio structure — typically to ~60–70% LTV with a higher credit score.
If your Maryland rental is losing money on paper and the DSCR is under 1, we place it in a different tier — not deny it. That’s exactly what we price out for you. Maryland’s big swing in property prices and taxes can cause this. A multi-million dollar home in Annapolis can easily fail debt coverage due to rates or taxes. A cheaper property in Baltimore city may be subject to high taxes and ground leases. This is how our DSCR loan in Maryland below 1.0 can get still get you financing. See how below-1.0 DSCR financing works →
Maryland markets allow different strategies for investors
Maryland isn’t one rental market — it’s really two, pulling in opposite directions, plus a middle.
The strategy you’re running should drive the metro you buy in and the tier you qualify under. These are the markets investors deploy Maryland DSCR loans in most.
The Montgomery ring — the federal and biotech corridor
Bethesda, Rockville, Gaithersburg, and Silver Spring — a tenant base of federal agencies, NIH (headquartered in Bethesda), and the I-270 life-sciences corridor. Recession-resistant demand tied to institutions that don’t move with one employer.
These are some of the most expensive cities in Maryland, and that’s the trade: prices on a single family property can easily run into the million dollar range and the debt coverage ratio may land close to 0.78 — a no-ratio or reduced-ratio structure, not standard. You’re buying tenant stability and long-run appreciation, not day-one cash flow.
Baltimore - the yield play
Rowhomes and small multifamily at the lowest entry prices in the state, with genuine cash flow — the out-of-state investor’s Maryland target. But two Baltimore-specific costs move the ratio.
The first is tax: Baltimore City charges roughly $2.25 per $100 for 2026 — about double Baltimore County. Taxes alone can be difference between a property that cash flows and shows a 1.14 debt coverage or it can easily be placed in a sub 1.0 ratio because the taxes jacked up your cash flow.
What many other lenders don’t tell you or don’t know about Baltimore – The Ground Lease
Many older Baltimore rowhomes sit on a historic ground lease — you own the building, but the land underneath is owned by a separate ground-rent holder you pay a small annual sum to, often $50–$240 a yea. It’s a Baltimore peculiarity that surprises almost every out-of-state investor, and it touches title, appraisal, and financing.
The good news: a properly registered, redeemable ground rent is financeable with a DSCR loan. The annual ground rent simply gets folded into the property’s PITIA, the same as taxes and insurance. What you don’t want is to discover it during underwriting or worse yet, at the closing table — so we identify it in title or up front, confirm it’s registered and redeemable, and price it into the ratio before you’re committed.
General education on Maryland ground rent, not legal advice. Ground-rent rules are set by Maryland law and have changed over time — confirm the specific parcel with a Maryland title attorney before underwriting
Frederick — the middle ground
More affordable than the DC ring, steadier and less complicated than the city — Frederick draws both DC-commuter tenants and a local employment base, without Baltimore’s tax load or ground-rent wrinkle.
The ratios sit between the two: often a standard or lightly reduced-ratio deal rather than a full no-ratio, at prices well under the Montgomery ring. It’s the “I want cash flow closer to 1.0 without the Baltimore asterisks” market.
Frederick also folds into the Washington, DC rent series rather than reporting on its own — one more reason to underwrite the specific parcel, not the metro headline.
What makes Maryland work for investors
The Montgomery ring
Bethesda, Rockville, Gaithersburg, Silver Spring — federal, NIH, and I-270 biotech demand. Expensive and stable; the no-ratio play.
Baltimore
Low entry prices and higher yields, with the city tax rate and ground rent to underwrite for. Rowhomes and small multifamily.
Frederick
The middle ground — more affordable than the DC ring, steadier than the city, with commuter and local demand.
Property types we finance
Single-family & PUD
The core of most Maryland DSCR portfolios — detached single-family and planned-unit developments .
2–4 units & townhomes
Small multifamily and townhomes for stronger blended cash flow.
Condos & non-warrantable
Warrantable and non-warrantable condos both financeable at Andes with LTV’s as low as 80%.
Multifamily 5-9 units
Small-scale 5–9 unit multifamily can close under our commercial DSCR guidelines.
Note: our Maryland DSCR loan allows rural properties too, but capped at 65% LTV — worth knowing in Western Maryland and other rural areas. Not sure a specific address qualifies? Run Mortgage Match and we’ll confirm before you’re under contract.
Financing short-term & vacation rentals in Maryland
Maryland has real short-term rental markets — the Eastern Shore beaches, the Deep Creek Lake mountains, and the historic-tourism draw of Annapolis and Baltimore’s Inner Harbor.
DSCR works for STRs here, but two things change versus a long-term rental: we qualify on short-term rental income (typically through AirDNA data or your trailing 12 months of statements showing payouts from Airbnb, VRBO, Expedia or your proprietary platform. One thing to note- the program runs a bit tigher than using long-term rents. Expect a higher minimum ratio (around 1.15), a stronger credit profile, and a lower LTV. And in Maryland, the rules that decide whether you can operate at all are intensely local.
Deep Creek Lake — the mountain market
Garrett County’s Deep Creek Lake is Maryland’s four-season resort market — summer lake demand plus a winter ski draw at Wisp, which smooths the seasonality that makes a pure beach STR riskier. That two-season profile is part of why lake properties often pencil more comfortably on an STR projection.
Garrett County runs one of Maryland’s more established vacation-rental licensing regimes, and lakefront vs. lake-access dramatically changes both revenue and price. Underwrite the specific property’s projected income, not a county average.
Ocean City & the Eastern Shore — the beach market
Ocean City is Maryland’s largest vacation-rental economy, with Assateague, Berlin, and the Chesapeake towns feeding steady seasonal demand. Peak summer weeks can carry a big share of the year’s revenue, which is exactly why DSCR underwrites STRs more conservatively — seasonality is a risk the ratio has to absorb.
Ocean City permits and regulates short-term rentals, and several nearby towns cap or zone them tightly. Confirm the specific municipality’s rules before you write the offer.
Annapolis & Baltimore
Annapolis (the Naval Academy, sailing, state-capital tourism) and Baltimore’s Inner Harbor and historic neighborhoods support year-round urban STR demand that isn’t tied to a single season — the most stable STR profile in the state, and the closest to clearing on a standard projection.
Both cities regulate STRs actively, and Baltimore ties short-term rental licenses to primary-residence rules in ways that can restrict pure-investor operation. This is the market where the regulatory check matters most — verify you can operate as a non-owner-occupant before counting on STR income.
Run a Maryland property’s numbers in the DSCR calculator below, or see how short-term rental financing works in our Airbnb & STR loan guide.
Maryland DSCR calculator
Enter the property’s rent and payment — and use the real rate for the parcel’s own taxing jurisdiction, the county’s or the independent city’s, not a state average. We’ll tell you the DSCR, which tier you land in, and which constraint is limiting your deal. No email required to see your result.
Frequently asked questions
What is a DSCR loan in Maryland?
A DSCR (debt-service coverage ratio) loan is a business-purpose mortgage for a non-owner-occupied Maryland rental. Instead of your tax returns or personal debt-to-income, it qualifies on the property’s numbers: monthly rent divided by full PITIA. At 1.0 the rent covers the payment; above 1.0 it cash-flows.
What are the requirements for a DSCR loan in Maryland?
Typical requirements: a credit score from 640 (the best LTVs, up to 85% on a purchase, are reserved for scores above 700), a qualifying DSCR — with no hard floor, since sub-1.0 deals move to reduced-ratio or no-ratio tiers — 25%+ down on most purchases, 3–6 months of PITIA in reserves, and a non-owner-occupied investment property (single-family, 2–4 units, PUD, townhome, or condo). Loans can be vested in an LLC.
How much down payment do I need for a Maryland DSCR loan?
On a standard Maryland DSCR purchase with a ratio of 1.0 or higher, plan for about 20–25% down — up to 85% LTV (15% down) is available with a credit score above 700.
Cash-out refinances go to 75% LTV. Reduced-ratio and no-ratio deals (DSCR under 1.0) carry lower LTV caps, so expect a bit more down.
What does a DSCR appraisal cost in Maryland?
For a Maryland rental, the appraisal usually pairs a standard valuation (Form 1004) with a rent schedule (Form 1007 for single-family, or Form 1025 for 2–4 units) so the lender can document market rent. Expect roughly $700–$850 for a single-family 1004 plus 1007, with costs easily escalating to $1,000 for multifamily and larger homes.
Can I buy a Maryland rental property through an LLC?
Yes. DSCR loans are business-purpose loans and can close in an LLC — how most Maryland investors hold rental property for liability and portfolio reasons. There’s also no limit on the number of DSCR loans you can hold.
More in our DSCR loan in an LLC guide.
What if my property’s DSCR is below 1.0?
You’re not disqualified — there’s no DSCR floor with Andes.
A ratio between 0.75 and 0.99 moves to a reduced-ratio tier with a modest LTV reduction; below 0.75, a no-ratio structure qualifies you on down payment and credit instead of cash flow. This comes up constantly in Maryland due to higher property taxes or home prices. See below-1.0 DSCR financing.
Related resources
Every investment-property program we offer in Maryland.
See if your Maryland deal qualifies
Run Mortgage Match and we’ll tell you which DSCR tier your property lands in and what you’d put down — no credit pull, no obligation. Hablamos español.
Andes Mortgage LLC · NMLS #2187991 · Equal Housing Lender. DSCR loans are business-purpose loans for non-owner-occupied investment property only, offered in 46 states. Andes Mortgage does not offer owner-occupied or consumer-purpose mortgage loans in Maryland. Figures shown are typical ranges from current wholesale lending guidelines as of August 2026 — not a single lender’s terms and not a commitment to lend. Program terms and eligibility vary by lender and are subject to change without notice. Real-estate tax rates are the 2026 base rates published by each county or independent city; payment figures are illustrative.