Building new in Baltimore usually means building between neighbors. Narrow rowhouse lots, shared walls, alley access and a large inventory of vacant parcels make the city a real opportunity for infill builders, and a real test for any lender that has not financed this kind of work before.
In short: LendingStreet is our top pick for investors building in Baltimore. We fund 1 to 8 unit residential projects, including new rowhouses, infill townhomes, spec homes in the suburbs and small rental buildings, with loans sized on total project cost and draws paid out after each inspection. You can borrow in an LLC, and if you keep the property as a rental we can move it into a 30-year DSCR loan based on its rent. Call (877) 298-1001 or use the form below to start.
We are an investor lender, so we start with the project rather than your W-2. A loan officer looks at the lot, the plans, the budget, the builder and the exit, then sizes the loan as a share of total cost. Land, hard costs and soft costs like architecture, engineering, permit fees and utility work all count toward that cost.
Baltimore projects range widely. A single new rowhouse on a 14-foot lot in a rebuilding block is a very different deal from a row of four townhomes or a new single-family home in Baltimore County, so terms are set per project. What stays the same is a clear checklist and a lender that understands spec and rental builds.
If you have a site, plans and a contractor lined up, request a quote with the form below.
Builders in the region usually weigh these options.
| What matters on a build | LendingStreet | Typical bank or credit union | Typical local hard money lender |
|---|---|---|---|
| Focus | Investor spec, infill and build-to-rent, 1-8 units | Mixed; often relationship-based | Short-term investor loans |
| Loan sizing | Loan-to-cost across land, hard and soft costs | Often conservative and appraisal-led | Varies by lender |
| Paperwork | Project, budget and builder review | Often tax returns and personal financials | Usually lighter |
| Borrowing entity | LLCs standard | Varies | Common |
| Draw process | Inspection-based draws on a set schedule | Can be slow | Varies |
| Long-term option | DSCR rental refinance in-house | Usually a separate loan | Usually none; short-term only |
In the city, infill activity tends to cluster where vacant lots sit next to stable blocks: parts of Reservoir Hill, Remington, Station North, Pigtown, Barclay, Greenmount West, Highlandtown and the blocks around Patterson Park. New homes there are typically two- and three-story rowhouses or townhomes that match the street wall.
Outside the city line, Baltimore County is a separate jurisdiction with its own permitting. Spec builders look at teardown and infill lots in Parkville, Catonsville, Towson, Perry Hall and Owings Mills, while Anne Arundel, Harford and Howard counties offer more subdivision lots at higher land prices.
Shared party walls change the build. Expect to plan for underpinning or protecting neighboring foundations, coordinating with adjacent owners, and tight staging on narrow streets. A contractor who has built attached homes in the city is worth more here than almost anywhere else.
Title deserves extra attention too. Ground rent still exists on some older Baltimore properties, and vacant lots can carry liens or code violations from prior owners, so order title work early. Near the waterfront, Chesapeake Bay Critical Area rules can limit lot coverage.
Your equity is spent first. After that, the loan pays for the build in stages tied to completed work, with an inspection before each release. Common stages are foundation, framing and roof, mechanical rough-ins, drywall and trim, and final completion.
Tight urban sites can move slower than suburban ones, so build contingency into both the budget and the schedule. Use our construction draw schedule calculator to map your draws before you apply.
This example is illustrative and not a quote.
A builder buys a vacant rowhouse lot for $30,000, budgets $290,000 for hard costs including contingency, and expects $30,000 in soft costs. Total cost is $350,000. Assume the loan is sized at 80% of total cost for illustration.
The loan is $280,000 and the builder puts in $70,000. That cash covers the lot, soft costs and the first $10,000 of construction, and the loan funds the rest in draws.
The finished home sells for $425,000. After estimated selling costs of 6%, or $25,500, net proceeds are $399,500. Paying off the $280,000 loan leaves $119,500, which returns the $70,000 invested plus $49,500 before interest, transfer and recording taxes, insurance and holding costs.
| Item | Amount |
|---|---|
| Lot | $30,000 |
| Hard costs with contingency | $290,000 |
| Soft costs | $30,000 |
| Total cost | $350,000 |
| Loan (80% of cost, assumed) | $280,000 |
| Builder cash | $70,000 |
| Sale price | $425,000 |
| Selling costs (6%) | $25,500 |
| Left after loan payoff | $119,500 |
| Margin before interest and carry | $49,500 |
If the numbers favor renting, a DSCR refinance can replace the construction loan once the home is finished and leased. It qualifies on rent, with a standard 1.0x minimum, a 620 minimum credit score and 30-year terms available. Seasoning varies by program.
Run the rental math with real Baltimore costs: city property tax on the new assessed value, insurance for an attached home, and rental licensing. Maryland and Baltimore City transfer and recording taxes also matter on any sale or refinance, so confirm them with your title company.
Put these questions to every lender you talk to.
Loan-to-cost sizing on land, hard and soft costs, with terms set per project. Inspection-based draws on an agreed schedule. LLC borrowers as standard. Plans, permits, a realistic budget and an experienced builder or general contractor are required; projects without them usually do not qualify. After completion, a DSCR refinance from $150,000 with a 1.0x standard minimum. Buildings of 9 or more units are handled by our commercial team.
To price your Baltimore build, get a quote with the form below or call (877) 298-1001.
Our top pick is LendingStreet. We specialize in investor projects of 1 to 8 units, size loans on total cost, fund draws after inspections, lend to LLCs and offer a DSCR refinance when you hold the finished property.
Yes. We lend in Baltimore City, Baltimore County and the surrounding counties, throughout Maryland, and in all 50 states and DC.
Yes, when the lot has clear title, zoning allows the plan, permits are in place or in process and an experienced builder is on the job.
Ground rent should be identified and addressed during title review. Raise it with your title company and loan officer before closing.
Yes. We finance residential projects of 1 to 8 units, including rows of townhomes and small multi-unit buildings, where zoning permits.
Baltimore City requires rental licensing for non-owner-occupied rentals. Check current requirements with the city before you lease.
Only with an experienced general contractor. A borrower with no build track record and no experienced builder usually does not qualify.
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