Best DSCR Lenders in Baltimore, MD

Baltimore, the largest city in Maryland, is a vibrant port town with deep historical roots and a modern economy built around health care, education, tourism and advanced industries. As an investor looking to capitalize on the city’s dynamic rental market and revitalization efforts, you need financing that is tailored to investment properties rather than traditional owner‑occupied mortgages. A debt service coverage ratio (DSCR) loan meets this need perfectly because it underwrites the property’s ability to generate cash flow instead of your personal income. By focusing on the rental income, a DSCR loan can allow you to acquire multiple properties, build long‑term wealth and diversify your portfolio in a city with diverse neighborhoods and strong demand for rentals.

The appeal of Baltimore for investors lies in its relative affordability compared with other East Coast markets, the presence of major universities and hospitals, a bustling port, growing life‑sciences sector and revitalization projects around the Inner Harbor and downtown. According to Redfin/Stacker data aggregated through November 2025, Baltimore’s median sale price was $395,449, with about 2,748 homes selling per month and inventory of 6,781 listings, translating to 2.5 months of supply and an average 33 days on market. These numbers show a healthy, competitive market that rewards investors who can close quickly. On the rental side, RentCafe reports that the average rent in Baltimore City is $1,638 as of January 2026, with studios at $1,308, one‑bedroom units at $1,552, two‑bedrooms at $1,724 and three‑bedrooms at $1,948. Approximately 51 % of households are renter occupied, indicating strong demand for rental housing. Understanding these market fundamentals is essential before evaluating which DSCR lender is best for your investment strategy.

Understanding DSCR Loans for Investment Properties

A DSCR loan is a non‑QM (non‑qualified mortgage) product designed specifically for investment properties. Instead of verifying personal income, W‑2s or tax returns, the lender calculates the debt service coverage ratio by dividing the property’s gross rental income by its annual debt obligations (principal, interest, taxes, insurance and association fees). A DSCR of 1.0 means the property’s income covers the loan payment exactly; a DSCR above 1.0 indicates positive cash flow, while a ratio below 1.0 means the property doesn’t fully cover its debt service. Lenders use DSCR as a proxy for risk: higher ratios generally translate into better rates and terms, whereas lower ratios may require higher down payments or reserves.

Investors appreciate DSCR loans because they provide:

1. Qualification based on property cash flow – The underwriter uses the market rent or signed lease to determine eligibility, which is ideal for self‑employed borrowers or those with complex tax situations. For example, Ridge Street Capital’s Maryland DSCR program requires a minimum DSCR of 1.0 for its long‑term rental loans and offers rates starting at 6.25 %, up to 80 % loan‑to‑value (LTV) and 0 % origination points. Their short‑term rental program sets the same 1.0 DSCR floor but slightly higher rates starting around 6.5 %, reflecting the volatility of vacation rentals.
   
2. High leverage with flexible credit requirements – Many DSCR lenders lend up to 80 % LTV for purchases or rate‑and‑term refinances and 75 % LTV for cash‑out refinances. For example, OfferMarket notes that its Maryland DSCR loans allow 80 % LTV on purchases and 75 % LTV on cash‑out refinances, provided the property’s DSCR is above 1.11 and the borrower’s credit score exceeds 660. Some lenders, like Tidal Loans, will even approve loans with DSCR ratios as low as 0.75 by adjusting the down payment and interest rate.
   
3. Simplified documentation – DSCR loans don’t require personal tax returns, pay stubs or employment verification. Instead, lenders typically ask for an appraisal with rent schedule, a lease agreement (for existing rentals) or projected market rent, evidence of reserves (often 3–12 months of PITIA) and a minimum credit score. Newfi, which lends nationwide including Maryland, accepts credit scores as low as 640 and DSCR ratios down to 0.8. HomeAbroad, a lender catering to foreign nationals, offers DSCR loans up to $10 million with 25 % down and will even finance properties with DSCRs below 1.0 through a no‑ratio program.
   
4. Long‑term, fixed and interest‑only options – DSCR loans typically come in 30‑year fixed‑rate or 5/1 or 7/1 adjustable‑rate formats, with interest‑only payments available for the first 5–10 years. This structure provides predictable payments and cash‑flow management for investors. Lenders like LYNK Capital offer 30‑year DSCR rental loans with rates starting around 6 % and no personal debt‑to‑income (DTI) requirements. In Baltimore’s appreciating market, locking in a fixed rate can preserve margins even if interest rates rise.
   

Understanding DSCR lending fundamentals helps investors compare lenders and structure deals appropriately. However, selecting the right financing partner also requires analysing local market conditions and the lender’s ability to serve specific neighborhoods and property types.

Baltimore Real Estate Market Overview

Housing market metrics. Baltimore’s housing market is active but more affordable than Washington D.C. or New York. As of November 2025, the median sale price was $395,449, with approximately 2,748 homes sold per month, 173 new construction sales per month, and inventory of 6,781 homes. The city had 2.5 months of supply and homes spent just 33 days on market on average, indicating a seller’s market. For investors, the relatively short time on market means properties can be leased quickly after acquisition, and limited inventory suggests upward pressure on rents and sale prices.

Rental market dynamics. RentCafe reports that average rent in Baltimore is $1,638 with studios at $1,308, one‑bedroom apartments at $1,552, two‑bedrooms at $1,724 and three‑bedrooms at $1,948. The distribution of rents shows that the largest share (39 %) of rentals fall between $1,001 and $1,500 per month, which indicates that moderately priced units appeal to a wide tenant base. The city’s high renter share51 % of households rentcreates sustained demand for rental properties.

Neighborhood variation. Rents vary widely across neighborhoods. According to RentCafe, affordable areas like Frankford and East Arlington have average rents around $1,019–$1,043 per month, while premium neighborhoods like Fells Point, Otterbein and Canton Industrial Area command rents between $2,285 and $2,552 per month. Understanding these disparities allows investors to target properties in growth corridors or reposition lower‑rent units for higher returns. Baltimore’s row‑house stock and increasing interest in neighborhoods like Hampden, Remington and Highlandtown provide value‑add opportunities.

Economic drivers and job market. Baltimore’s economy has diversified from its industrial roots into services, health care, biosciences and tourism. The city’s heritage as a port continues to support maritime industries, but blue‑collar jobs are increasingly supplanted by law, finance, medicine, hospitality, technology and aerospace research. Johns Hopkins Hospital and the University of Maryland Medical Center anchor a life‑sciences hub that includes biotech firms working on genome mapping. Baltimore remains a major center for shipping and shipbuilding, and its Fortune 500 companies include U.S. Foodservice, Black & Decker and Constellation Energy. Tourism propelled by the Inner Harbor attractions, sports teams and cultural events creates thousands of jobs. These diversified industries support strong rental demand and resilient property values, making DSCR loans especially attractive.

How DSCR Loans Work for Rental and Investment Properties

To calculate DSCR, divide the property’s gross monthly rent (or projected rent) by the monthly debt obligations (principal, interest, taxes, insurance and any association fees). Suppose you acquire a townhouse in Canton that rents for $2,200 per month and your lender estimates monthly PITIA at $1,800. The DSCR is $2,200 / $1,800 = 1.22, which means the property cash flows comfortably and likely qualifies for the best rate. If the rent were only $1,700, the DSCR would fall to 0.94, which some lendersparticularly those like Tidal Loansmight still approve by reducing the LTV or increasing the interest rate.

Lenders vary in how they underwrite DSCR loans, but the process generally follows these steps:

1. Pre‑qualification – The borrower provides credit score and experience information. Many lenders accept credit scores as low as 620–640. OfferMarket requires a minimum of 660 (best terms at 720+), while Newfi and Tidal Loans can go lower. Borrowers should also expect to demonstrate experience with rental properties or partner with an experienced property manager.
   
2. Property appraisal and rent schedule – The lender orders an appraisal to determine market value and a rent schedule (Form 1007) to estimate market rent. The DSCR calculation uses the higher of actual lease rent or appraiser’s estimate, except when stabilizing a vacant property.
   
3. Loan structuring – Based on DSCR, credit score and loan amount, the lender sets the LTV (typically up to 80 %), interest rate (between 6–8 % for most programs) and reserves. For example, MoFin’s Maryland DSCR guide notes that interest rates range 7.5 % to 8.25 %, with most lenders preferring DSCRs of 1.25 but some accepting 0.75.
   
4. Closing – Because DSCR loans rely on property income rather than personal income, closings are often faster than conventional mortgages. Ridge Street Capital advertises closing times around 21 days, while OfferMarket aims for quick closings with minimal seasoning. Borrowers must bring the down payment (20–25 %) and any necessary reserves to closing.
   

What Investors Should Look for in a DSCR Lender

Choosing the right DSCR lender involves more than finding the lowest rate. Consider the following factors:

1. Loan terms and flexibility – Examine the maximum LTV, minimum DSCR, loan amount range and whether the lender will finance cash‑out refinances or short‑term rentals. Easy Street Capital’s Maryland DSCR program lends up to 80 % LTV for purchases and 75 % for cash‑out with no minimum DSCR, making it attractive for properties with just‑breaking‑even cash flow.
   
2. Interest rates and fees – Compare the lender’s advertised rates and origination points. Ridge Street Capital charges 0–1 % points and rates starting at 6.25 % for long‑term rentals. OfferMarket lists rates between 7.5 % and 8.25 % but emphasises higher LTVs and fast closings.
   
3. Credit score and DSCR requirements – Some lenders, like Newfi (minimum credit score 640, DSCR 0.8) or Tidal Loans (credit score 620; DSCR as low as 0.75), accommodate lower credit and DSCR thresholds. Others require DSCR above 1.1 (OfferMarket).
   
4. Closing timeline and service – For competitive markets like Baltimore, the ability to close quickly can mean the difference between winning and losing a deal. Ridge Street Capital and LYNK Capital tout closings within 21–30 days, while hard‑money lenders like Trius Lending Partners advertise funding within 72 hours for commercial deals (though rates may be higher and terms shorter). Evaluate whether the lender uses in‑house underwriting and if they understand Baltimore’s neighborhoods.
   
5. Specialisation and local expertise – Some lenders specialise in DSCR loans for specific property types (e.g., short‑term rentals, small multifamily) or for foreign nationals. HomeAbroad, for instance, offers DSCR financing up to $10 million with no U.S. credit score requirement and emphasises their ability to close in 27 days. Local banks like SECU and Trius Lending Partners may provide commercial mortgages based on DSCR but often require higher DSCR (around 1.20 for SECU) and shorter terms.
   

Top DSCR Lenders in Baltimore, MD

1. SelectHomeLoans.com (Top Choice)

SelectHomeLoans.com is our top pick for Baltimore investors because it combines competitive pricing, high leverage, local expertise and stellar customer service. As a DSCR specialist that focuses exclusively on investment properties, SelectHomeLoans.com offers:

• Rates starting near 6 % with up to 80 % LTV on purchases and 75 % LTV for cash‑out refinances, matching the most competitive options in the market.
  
• No minimum DSCR requirement for well‑located properties; however, they recommend a DSCR of at least 1.0 to ensure sustainable cash flow. Their underwriters can approve deals with DSCR as low as 0.75 by adjusting the LTV or interest rate.
  
• Flexible credit standards – credit scores down to 620 for 1–4‑unit residential properties and no cap on the number of properties financed. Borrowers with scores above 700 may qualify for lower rates and reduced reserves.
  
• Fast closings – thanks to in‑house underwriting, SelectHomeLoans.com can close DSCR loans in as little as two weeks. They also allow interest‑only payments for up to 10 years, providing additional cash‑flow flexibility.
  
• Local knowledge – Their team includes loan officers familiar with Baltimore neighborhoods like Federal Hill, Canton, Hampden and Mount Vernon. They provide property‑specific guidance on rent estimates and renovation budgets, reducing the risk of over‑leveraging.
  
• Portfolio options – For investors with five or more properties, SelectHomeLoans.com offers portfolio DSCR loans that consolidate multiple rentals into a single note with cross‑collateralization. This feature simplifies management and can unlock additional capital.
  

Overall, SelectHomeLoans.com stands out for its combination of investor‑friendly terms, local expertise and efficient processing. Investors consistently report responsive communication and transparency throughout the loan process. Visit their website SelectHomeLoans.com Or Call them (888) 550-3296

2. Ridge Street Capital

Ridge Street Capital’s DSCR program is well suited for investors seeking straightforward terms and the confidence of a private lender with established underwriting guidelines. Key features include:

• Rates from 6.25 % (long‑term rentals) and 6.5 % (short‑term rentals), with LTV up to 80 % and 0 %–1 % origination.
  
• Minimum DSCR of 1.0, which ensures positive cash flow but is flexible enough for value‑add properties. They require a minimum credit score of 660 for long‑term rentals and 700 for short‑term rentals.
  
• Closing in 21 days and no personal DTI requirement. Their property‑condition standards (minimum C4) ensure that financed properties meet safety and habitability requirements.
  

Ridge Street Capital is a good choice for investors who need clarity on terms and prefer not to deal with the sliding‑scale pricing that some national lenders use.

3. OfferMarket

OfferMarket is a tech‑enabled marketplace that caters to experienced investors. Their DSCR program offers:

• High leverage – up to 80 % LTV on purchases and 75 % LTV for cash‑outs, with DSCR requirements starting at 1.11. Investors with DSCR above 1.25 can qualify for better rates.
  
• Credit score threshold of 660 (best pricing at 720+). OfferMarket emphasises fast processing and will finance properties in competitive neighborhoods quickly.
  
• Current interest rates around 7.5 %–8.25 %, reflecting the risk premium for high leverage.
  

OfferMarket is ideal for investors who prioritise speed and leverage over the absolute lowest rate.

4. LYNK Capital

LYNK Capital focuses on DSCR rental loans in East Coast markets. Their Maryland program features:

• Rates starting near 6 % and LTV up to 80 %.
  
• No personal DTI or tax returns – qualification is based solely on the property’s DSCR, and they accept DSCR ratios down to 1.0.
  
• Nationwide experience – LYNK has funded more than $1 billion in DSCR loans and offers 30‑year fixed or hybrid ARMs.
  

LYNK is a strong contender for investors with solid credit who want reliable, fixed‑rate financing and a lender with established infrastructure.

5. Newfi

Newfi offers DSCR loans across the country, including Maryland. Notable features include:

• Minimum credit score 640 and DSCR as low as 0.8, making Newfi suitable for investors with moderate credit or properties with slightly lower cash flow.
  
• LTV up to 80 % on purchases and 75 % on cash‑out refinances, with loan amounts up to $3 million.
  
• 15‑, 30‑ and 40‑year fixed or interest‑only terms, allowing borrowers to match their cash‑flow needs.
  

Newfi is a versatile option for investors seeking longer amortizations or interest‑only periods without stringent DSCR requirements.

6. Tidal Loans

Tidal Loans is a flexible lender that often works with investors who have lower DSCR ratios or credit scores. Their Maryland program features:

• DSCR as low as 0.75 or even below 1.0 by adjusting LTV and interest rate.
  
• Credit scores down to 620 and 30‑year fixed or interest‑only terms.
  
• No tax returns or W‑2s required. They finance single‑family, 2–4 units, multifamily, mixed‑use and even rural properties.
  

Tidal Loans is well suited for investors rehabilitating older Baltimore row houses or pursuing higher‑risk deals with big upside.

7. MoFin and Rehab Lend

MoFin’s Maryland DSCR guide provides ranges rather than specific programs; they estimate interest rates between 7.5 % and 8.25 % and note that most lenders prefer DSCR at least 1.25, though some will consider 0.75. They emphasise the importance of having reserves and being prepared for prepayment penalties. Rehab Lend, a hard money lender active in Maryland, suggests that DSCR loans typically require a minimum DSCR of 1.0, credit scores above 620, and reserves for unforeseen expenses. They specialise in flexible financing for distressed or value‑add properties and caution investors about market fluctuations and management challenges.

8. Local Banks and Credit Unions

Baltimore’s regional banks and credit unions, such as SECU, MECU and Tower Federal Credit Union, primarily offer commercial real estate loans rather than pure DSCR products. For instance, SECU typically lends up to 75 % LTV on income‑producing real estate and requires strong cash flow (DSCR around 1.20) and personal guarantees. Trius Lending Partners, a private lender based in Baltimore, markets itself as a fast, flexible commercial lender that can close in as little as 72 hours. While Trius specializes in hard money and bridge loans rather than DSCR, they may serve investors who need rapid financing for renovations or portfolio repositioning. Local banks are excellent options for investors wanting long‑standing relationships and access to lines of credit, though they may impose stricter underwriting standards and slower approvals.

DSCR Loan Rates, Terms, and Qualification Factors in Baltimore

DSCR loan pricing in Baltimore reflects the national non‑QM market but can vary based on credit score, DSCR and leverage. Interest rates generally range from 6 % to 8.5 %; loans with DSCR above 1.25 and credit scores over 700 tend to secure rates around 6–6.5 %, while borrowers with DSCR between 0.75 and 1.0 may pay 7.5–8.25 %. Origination fees typically range from 0–3 points; lenders like Ridge Street Capital and LYNK Capital keep points at or below 1 %, whereas some brokers may charge more.

Down payments average 20–25 % for purchases; cash‑out refinances usually max out at 75 % LTV. Borrowers should prepare for three to twelve months of reserves to cover PITIA, depending on DSCR and credit. Many lenders require at least one prior rental experience or a property manager on board. Loan amounts range from $75,000 to $3 million for most programs (SelectHomeLoans.com can finance portfolios beyond this), and closing times range from two to four weeks. Investors should also consider prepayment penaltiescommonly 3 years on 30‑year loans and the costs of appraisals and title work.

Common Mistakes Investors Make with DSCR Loans

1. Overestimating rents – Investors sometimes rely on optimistic rent projections that don’t reflect market realities. Underwriting uses market rent data, so overestimates can lead to a DSCR below the lender’s threshold, jeopardizing approval.
   
2. Underestimating expenses – Failing to account for property taxes, insurance, maintenance, vacancy and management fees can inflate DSCR calculations. Conducting a thorough cash‑flow analysis including reserves is essential.
   
3. Neglecting property condition – DSCR lenders require properties to be rent‑ready. If major repairs are needed, the property may not qualify until renovations are complete. Always budget for repairs and factor them into your timeline.
   
4. Not shopping lenders – Rates, fees and DSCR requirements vary widely. Some borrowers settle for high rates because they don’t compare multiple offers. A half‑percentage difference in rate can save thousands over the life of a loan.
   
5. Ignoring prepayment penalties – Many DSCR loans include three‑year prepayment penalties. Investors planning to sell or refinance early should consider lenders with step‑down prepayment schedules or negotiate buy‑downs.
   

DSCR Loans vs. Traditional Investment Property Financing

Conventional investment property loans typically issued by banks and conforming to Fannie Mae/Freddie Mac guidelines require extensive documentation of personal income, tax returns and debt‑to‑income ratios. They limit the number of financed properties (usually 10) and may cap LTV at 75 % for non‑owner‑occupied homes. DSCR loans, in contrast, focus on the property’s cash flow and allow investors to scale portfolios without heavy documentation. Although DSCR rates are generally higher and require larger down payments than conventional mortgages, the speed and flexibility they offer often outweigh the additional cost. Hard money and bridge loans provide even quicker access to capital but at higher rates and shorter terms; DSCR loans strike a balance between long‑term stability and underwriting flexibility.

Who DSCR Loans Are Best For (and Who They Are Not)

Ideal borrowers: DSCR loans serve investors who rely on rental income to qualify. This group includes self‑employed entrepreneurs, real‑estate professionals, house flippers transitioning to rentals, and those who own multiple properties. Foreign investors without U.S. income history can also benefit from DSCR loans, as programs like HomeAbroad don’t require U.S. credit.

Less suitable borrowers: DSCR loans are not designed for owner‑occupied primary residences. Borrowers with high personal incomes and few properties may find cheaper rates with conventional financing. Also, investors with very low DSCR (below 0.75) or credit below 620 will have limited options and may need to improve property cash flow or credit before applying.

City‑Specific Investing Considerations in Baltimore

1. Neighborhood selection: Baltimore’s rental demand is strong near employment hubs (Johns Hopkins, University of Maryland Medical Center), entertainment districts (Inner Harbor, Fells Point), and transit corridors (I‑95, I‑83). Investing in neighborhoods undergoing revitalization such as Remington, Station North and Old Goucher can yield appreciation, but investors should budget for higher renovation costs and maintain security measures. Premium neighborhoods like Federal Hill, Canton and Otterbein command rents above $2,200, while more affordable areas like Frankford and East Arlington offer steady cash flow at lower price points.
   
2. Property taxes and licensing: Baltimore requires rental registration and inspections for all non‑owner‑occupied dwellings. Investors must budget for licensing fees and ensure compliance with lead‑paint laws (for properties built before 1978). Property taxes vary by neighborhood; high taxes can erode cash flow, so verify assessments before closing.
   
3. Economic diversification: The presence of major universities, hospitals, biotech firms and port facilities supports demand from students, health‑care workers and maritime employees. However, sectors like hospitality and tourism are cyclical; investors should model cash flow under conservative rent assumptions.
   

Conclusion

Baltimore’s real estate market offers attractive opportunities for investors who understand the city’s neighborhood dynamics and economic drivers. DSCR loans unlock the ability to finance properties based on cash flow rather than personal income, making them ideal for building a diversified portfolio. Among the many DSCR lenders available, SelectHomeLoans.com stands out for its competitive rates, flexible DSCR requirements, and deep understanding of Baltimore’s neighborhoods. Whether you’re acquiring your first rental property or expanding an existing portfolio, partnering with SelectHomeLoans.com provides the support and expertise needed to succeed in Charm City’s dynamic real estate market.