Maryland contains two very different investor propositions. Baltimore offers some of the lowest entry pricing on the East Coast alongside a distinctive rowhome inventory and complications that do not exist elsewhere. The Washington suburbs in Montgomery and Prince George’s counties are high-basis, high-demand markets with correspondingly tight ratios.
The short answer: A ground-up construction loan funds an investment build from land or teardown through certificate of occupancy. Loans are sized on loan-to-cost — land plus hard and soft costs — and released in draws tied to construction milestones, with interest typically accruing only on drawn funds. In Maryland, land availability and local permitting practice vary enough between metros that they belong in the timeline assumption from the start.
Maryland ground-up work divides sharply. The Washington suburbs and Baltimore County ring build conventionally on open parcels with straightforward collateral. Baltimore City infill is rowhome construction — building into an existing block means party-wall engineering, shared-foundation conditions, alley-only site access and utility tie-ins laid out a century ago. Ground rent status on the parcel itself has to be resolved before a construction loan can close, which is a step no other state requires.
Primary markets: Baltimore · Columbia · Silver Spring · Rockville · Annapolis · Frederick
Construction underwriting is the most guideline-sensitive product in investment finance. Draw structures, general contractor requirements and borrower experience minimums differ substantially between capital sources, and a project that one source declines on experience alone may be routine for another. In Maryland, the exit also matters: a build-to-rent project needs a DSCR takeout underwritten in principle before the construction loan closes.
You have permits, an experienced general contractor, and a build profile a lender has funded many times before.
Your build history is limited, the draw schedule needs flexibility, or the DSCR takeout has not been underwritten yet.
No lender is best for every deal. Kiavi, RCN Capital, Lima One, Dominion Financial, Tidal Loans all write ground-up construction loans in Maryland and all are legitimate options. They differ on leverage, credit floors, property types and experience requirements. The useful question is which fits this deal.
Works: A spec builder or build-to-rent investor with plans and permits in hand or close to it, and a defined exit by sale or DSCR refinance.
Does not: Owner-occupied builds, projects without plans or permits, or a borrower with no build track record and no experienced general contractor attached.
It is construction into an existing block rather than onto an open parcel. Party-wall engineering, shared foundation conditions, alley-only site access and century-old utility tie-ins all apply. Add the ground rent question on the parcel, which has to be resolved before a construction loan closes. Washington-suburb and Baltimore County projects carry none of that.
The Washington suburbs and the Baltimore County ring, where demand supports new delivery at ordinary cost and the collateral is conventional. Those projects underwrite like new construction anywhere else, without the leasehold and vacancy layers that Baltimore City infill carries.
There is no single best lender for every scenario. Kiavi, RCN Capital, Lima One, Dominion Financial, Tidal Loans all write ground-up construction loans and each has different guidelines. The right answer depends on the specific deal. LendingStreet places the same scenario across 30+ capital sources so the comparison happens on one application.
Yes, in all 50 states including Maryland. These are business-purpose loans on non-owner-occupied investment property, from $150,000 with no stated maximum. No W-2 or tax returns required and LLC borrowers are welcome.
Have a Maryland deal? Tell us the scenario and we will price it across our capital sources.
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