Maryland Fix and Flip Loan

Last Updated: April 12, 2025

Are you a real estate investor in Maryland looking to profit from flipping properties? With OfferMarket's Fix and Flip Loan Program, you’ll find the perfect financial support tailored for your needs. Whether you’re just starting out or you're an experienced investor, we offer flexible terms that will help you succeed in the dynamic Maryland market. Let’s walk through everything you need to get started!

What You Get with OfferMarket’s Fix and Flip Loan in Maryland

At OfferMarket, we understand that every property flip is different, which is why our program is designed to be flexible and adaptable to your unique needs. Here’s a breakdown of what you can expect when choosing OfferMarket for your Maryland-based fix-and-flip loan.

1. Loan Amount Structure

• Starting Loan Amount: $25,000 – Ideal for smaller, quick-turnaround projects.

• Maximum Loan Amount: $2,000,000 – For larger loans, you’ll need to show 3+ years of experience and solid comparable sales (comps).

How It Works: The size of the loan is determined by your property’s purchase price, rehab budget, and ARV (After Repair Value), ensuring that you have enough capital to complete the project.

2. After Repair Value (ARV) Requirements

• Minimum ARV: $100,000 – Helps guarantee that the project will yield a return.

• Maximum Loan-to-ARV (LTARV): Up to 75% – Depending on your experience level, it could range from 70% (for beginners with light rehabs) to 75% (for seasoned investors).

• Valuation: We use either in-house valuations or third-party appraisals (such as the 1004 + 1007 for single-family homes) to calculate the ARV.

3. Breakdown of Your Funding

• Initial Advance: Up to 90% of the property’s purchase price – If you’re new to flipping, you may be eligible for up to 80%. More experienced investors can qualify for up to 90%.

• Construction Holdback: 100% of the rehab costs – Disbursements are made quickly via a self-serve, app-based system with a 0-2 day turnaround.

• Down Payment: For properties below $100,000, a minimum down payment of $10,000 is required.

• Draws: There are no limits on draw amounts, but 50% of material costs are funded once materials are delivered.

4. Interest Rates and Additional Fees

• Interest Rates: Flexible and subject to market conditions—get in touch to learn the current rate for your loan.

• Origination Fee: 1.5% to 2% of the loan (with a minimum fee of $2,000).

• Other Fees: $270 per draw request, $30 per wire transfer, and any applicable appraisal fees.

• Interest Accrual: For loans under $100K, interest is accrued on the full loan amount. For loans above $100K, interest is only accrued on the amount disbursed.

5. Loan Duration

• Term Length: Our standard loan term is 12 months, though we offer 18-24 month terms for certain projects.

• Extensions: Available for up to 50% of your loan term, with fees of 1% for an extension of 3 months, and 2.5% for 6 months.

6. Repayment Terms

• Payment Structure: Interest-only payments are due during the loan term, with a balloon payment due at the end, so you don’t have to worry about monthly payments during your project.

• Prepayment Penalty: There is no prepayment penalty—pay off your loan early without incurring extra charges.

• Recourse: Full recourse with a 51% guarantee from your LLC or Corporation for purchases (100% for refinances).

7. Exit Strategy Guidelines

• Sale: A minimum 30% return on investment (ROI) is required, along with at least $15,000 profit when selling the flipped property.

• Refinance: After completing repairs, you will need a debt service coverage ratio (DSCR) of at least 1.1 to refinance the loan.

• Flexibility: You can flip or rent out your property based on Maryland’s real estate market conditions.

8. Borrower Eligibility

• Experience Requirements: Experience isn’t required, but loan terms change based on your level of experience. New investors start with Tier 1 (80% loan-to-value) and seasoned investors may qualify for up to 90% (Tier 5).

• Credit Score: A minimum credit score of 680 is needed, with some exceptions for scores between 660-679 subject to additional review.

• Entity: You must operate through an LLC or Corporation.

• Cash Reserves: You will need sufficient funds for the down payment and 25% of your rehab budget in liquid assets (such as bank or retirement accounts).

9. Property and Project Requirements

• Eligible Properties: We finance 1-4 unit residential properties, including single-family homes (at least 700 sq ft), duplexes/triplexes/quadplexes (at least 500 sq ft per unit), condos (at least 500 sq ft), townhomes, and PUDs.

• Maximum Acreage: You can flip properties with up to 5 acres of land, ideal for rural Maryland properties.

• Rehab Scope: From light rehabs (less than 25% of the purchase price) to major renovations (over 100% of the purchase price). New investors are limited to moderate rehabs.

• Location: We offer loans in Maryland, but some rural properties may require 3+ years of experience and a -20% advance adjustment.

10. Risk and Approval Process

We aim to make the loan approval process smooth, fast, and transparent, helping ensure the success of your investment.

• Underwriting: We evaluate key factors, including the ARV, rehab scope, your experience in flipping homes, and market conditions in Maryland. Local market trends (e.g., Baltimore, Silver Spring, and Rockville) are considered to accurately assess the potential of your investment.

• Valuation: We conduct either an in-house valuation or third-party appraisal based on the property type and specifics of the deal. Common appraisals include 1004 + 1007 for single-family homes.

• Approval Time: Our approval process is quick—draw requests are processed in 0-2 days, and initial funding depends on how quickly you provide the necessary documents.

11. Support and Flexibility

At OfferMarket, we're more than just a lender—we’re your partner in success.

• Expert Guidance: We’ll help you with everything from estimating rehab costs to creating realistic ARVs and understanding market conditions in Maryland.

• Rehab Oversight: Our self-serve draw inspections ensure your project stays on track. Request funds easily using our app with quick 0-2 day turnaround.

• Advanced Draws: We provide advanced draws as needed for materials and labor to ensure you have sufficient funds throughout the rehab process.

12. Transparent Costs

We pride ourselves on transparency. Here’s what you need to know about costs:

• Sample Scenario in Maryland:

  • Property Purchase Price: $150,000

  • Rehab Budget: $50,000

  • ARV: $225,000

  • Loan Amount: Up to 75% of ARV ($168,750)

  • Down Payment: $15,000

  • Initial Funding: Up to 90% of the purchase price ($135,000)

  • Rehab Holdback: Up to 100% of rehab budget ($50,000)

  • Interest Rate: Variable based on market conditions—contact us for current rates.

  • Origination Fee: 1.5 to 2 points ($2,000 minimum)

  • Additional Fees: $270 per draw, $30 per wire, and appraisal fees.

Why Choose OfferMarket’s Fix and Flip Loan in Maryland?

Maryland offers a thriving real estate market, with plenty of opportunity for investors. Whether you’re flipping properties in Baltimore or in suburban areas like Montgomery County, OfferMarket’s flexible loan program gives you the capital and support you need to succeed.

Why Maryland? With a strong economy, Maryland's real estate market is in demand, especially in cities like Baltimore, Silver Spring, and Annapolis. Whether you’re flipping homes in the city or rural areas, our loan program gives you the financial backing to make it happen.

How Our Fix and Flip Loan Program Can Help You Profit in Maryland

Maryland offers a dynamic real estate market with many investment opportunities. Whether you’re focusing on urban flips in Baltimore or suburban properties in Montgomery County, OfferMarket's loan program ensures that you have the capital and support to tackle your project confidently.

By leveraging our flexible loan terms, you’ll secure funding for both the purchase price and rehab costs, allowing you to focus on transforming properties without worrying about financing. With our transparent fees, quick approval process, and fast draw requests, you can stay on top of your project and maximize your profits.

How Our Fix and Flip Loan Works

Let’s take a closer look at a sample scenario in Maryland to see how the Fix and Flip Loan Program works in action:

Property Purchase Details

Loan Structure

After completing the rehab, the property is sold for $320,000, leaving you with a substantial profit of $80,000 after covering your loan repayment, rehab costs, and associated fees.

Documentation for Property Purchases in Maryland

When you’re ready to purchase a property for a fix and flip in Maryland, we’ll need to gather some important documentation to ensure a smooth process. Here’s what’s required to get started:

• Purchase Agreement: A signed contract between you and the seller outlining the terms of the sale.

• Credit Report: A soft tri-merge credit report for each guarantor in your borrowing entity to assess creditworthiness.

• Background Check: A background report for every member of your borrowing entity to evaluate any potential risks.

• Experience History: Documentation showing your prior real estate experience. This is required for each member of your borrowing entity.

• Proof of Identity: A government-issued ID (driver’s license, passport, or Green Card) for every guarantor involved.

• Business Documents: For your LLC or Corporation, provide Articles of Organization or Incorporation, Operating Agreement or Bylaws, Certificate of Good Standing, and a W-9.

• Rehab Plan: A detailed rehab budget that outlines your plans and helps us estimate the property’s After Repair Value (ARV) in the Maryland market.

• Appraisal Fee: Once we provide you with a link to pay the appraisal fee, the report will be uploaded directly to your loan file.

• Bank Statements: Submit two recent personal bank statements for each guarantor, which can include personal bank accounts, retirement accounts, or brokerage accounts.

• Letter of Explanation (LOE): If any specific financial details need further clarification, such as large deposits or inconsistencies, we may request a letter explaining these items.

Documentation for Refinancing in Maryland

If you're looking to refinance a property you already own in Maryland, we’ll need to gather the following documentation:

• Settlement Statement: This should be fully executed by both you and the settlement agent involved in the transaction.

• Credit Report: A soft tri-merge credit report for each guarantor, as required for purchase transactions.

• Background Report: A background check for each person in your borrowing entity.

• Experience Documentation: Your project history, to be submitted for each member of the borrowing entity.

• ID Verification: Provide a valid government-issued ID for each guarantor.

• Business Documents: Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, and W-9 for your LLC or Corporation.

• Sunk Costs: A detailed breakdown of the funds you’ve already invested into the property in Maryland.

• Scope of Work: A rehab budget for the property, to help guide your renovation and determine the ARV.

• Appraisal Report: After paying the appraisal fee, the report will be uploaded to your loan file for review.

• Bank Statements: Two recent bank statements for each guarantor are required to show financial stability.

• Letter of Explanation (LOE): If there are any unclear items regarding your financial standing (such as deposits, late payments, etc.), an LOE may be requested for clarification.

Special Conditions for Loans Over $1 Million in Maryland

For larger loans in Maryland between $1 million and $2 million, we require extra documentation to ensure the investment is solid and feasible:

• Experience Requirement: You must have completed at least 3 previous real estate projects, particularly those with similar or higher value. This will help us verify your ability to handle large flips.

• Comparable Sales: We require at least 3 comparable sales within a 2-mile radius of the property, sold on the MLS within the last 6 months. This helps ensure your property has resale potential in Maryland’s market.

• Credit Score: A minimum of 680 is required, along with at least 5 trade lines and a 24-month credit history to prove strong financial reliability.

• Rural Property Clarification: If the property is located in a rural area of Maryland, as defined by relevant state agencies, additional requirements may apply. Use our Rural Designation Tool to verify eligibility.

• Track Record: A detailed track record of your past projects will be necessary for each borrower involved, as larger loans involve higher stakes and risk.

Easy Access to Fix and Flip Loan Quotes in Maryland

At OfferMarket, we’ve streamlined the process so you can quickly submit your documents and have them securely stored in your account for future use. This allows you to focus on flipping properties while we handle the paperwork.

Ready to take the next step? With our efficient system, you’ll be able to quickly get the loan approval you need for your next fix and flip project in Maryland.

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💡 Market insights

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