Baltimore's rowhouses are some of the most affordable urban rental stock on the East Coast, and many need full renovations. A bridge loan closes the purchase quickly and carries the rehab until a DSCR refinance.
In short: LendingStreet offers residential bridge loans in Baltimore from $150,000 to $5M+ on 1 to 8 unit investment property, with rates from 7.99% and closings in as little as 10 days. Investors use them to renovate rowhouses and small multifamily buildings, then refinance into a DSCR loan. Baltimore's transfer and recording taxes, lead paint rules and rental licensing are the local items to plan for.
Baltimore is a rowhouse city. Patterson Park, Highlandtown, Canton, Hampden, Pigtown, Reservoir Hill and Charles Village have brick rowhouses from the 1800s and early 1900s, along with larger homes converted into apartments.
Some properties come with vacant building notices or deferred maintenance, and many need complete rehabs with new systems. Those are exactly the deals a long-term lender will not finance until the work is done.
A conventional mortgage is slow and wants a property that is already in good shape. A bridge loan is the opposite: fast, short-term and interest-only, made for a property that needs work or needs to be bought before a permanent loan can be arranged. LendingStreet's residential bridge loans run from $150,000 to $5M+ on 1 to 8 unit investment property, with rates from 7.99%.
Closings can happen in as little as 10 days, and some programs need no appraisal. Underwriting centers on the deal itself: what you are paying, what the rehab costs, what the property will be worth and rent for when it is done, and whether you plan to sell or refinance into a DSCR loan in Baltimore.
Bridge loans cost more per month than a 30-year loan, which is why the hold should be short and the plan specific. Count interest, purchase closing costs, lender fees and exit costs, and give yourself a few months of cushion for contractors and permits.
Bridge loans are not for every purchase. In Baltimore, they tend to earn their cost in deals like these.
Many Baltimore rowhouses are sold by investors and estates, often as-is. A bridge loan lets you close fast on a property that no conventional lender will finance in its current shape.
| Deal | Where you see it | Why a bridge fits |
|---|---|---|
| Rowhouse full rehab | Pigtown, Highlandtown, Reservoir Hill | Condition rules out a permanent loan at purchase |
| Vacant property purchase | East and West Baltimore | Carry the property through renovation and lease-up |
| Converted multi-unit value-add | Charles Village, Bolton Hill | Units need turnover before refinance |
This example is illustrative and not a quote. An investor buys a vacant brick rowhouse in Highlandtown and completes a full rehab before leasing. The purchase price is $140,000, the rehab budget is $70,000 and the investor expects an after-repair value of $260,000.
Assume a sample bridge loan that funds 80% of the purchase price plus the rehab budget, $182,000 in total. Interest on the full balance is about $1,441 a month, or about $10,086 over a 7-month hold. The investor brings the $28,000 down payment plus closing costs.
At refinance, a DSCR loan at 75% of the $260,000 value is $195,000, which pays off the $182,000 bridge balance with about $13,000 left over before closing costs., principal and interest is about $1,330. With taxes of $490 and insurance of $110 a month, the payment is about $1,930. Rent of $2,000 gives a DSCR of about 1.04x, above the 1.0x standard minimum.
| Item | Amount |
|---|---|
| Purchase price | $140,000 |
| Rehab budget | $70,000 |
| Bridge loan (80% of price plus rehab) | $182,000 |
| Monthly interest | $1,441 |
| Interest over 7 months | $10,086 |
| DSCR refinance at 75% of $260,000 | $195,000 |
| Monthly payment with taxes and insurance | $1,930 |
| DSCR at $2,000 rent | About 1.04x |
Maryland charges a state transfer tax, and Baltimore City adds its own transfer tax and a recording tax. The combined cost is higher than in many places, so ask your title company for current rates and how they are split.
Baltimore City's property tax rate is high relative to the surrounding counties. Budget on the full rate applied to the assessed value after renovation.
Maryland requires registration and lead risk reduction for rental units built before 1978. Baltimore City requires a rental license with an inspection before you lease. Build both into your timeline.
Some Baltimore properties still carry ground rent, a long-term lease on the land under the house. Your title company should identify it, and it may need to be redeemed or addressed at closing.
If you plan to keep the property, run the DSCR math on day one, not month nine. A DSCR loan qualifies on the rent divided by the full payment, including taxes and insurance, and cash-out is capped at 75% LTV. The minimum credit score is 620 and LLC borrowers are standard. Seasoning before cash-out varies by program.
Baltimore City taxes are a large part of the DSCR payment. Run the refinance on the post-rehab assessment, not the purchase-era bill.
Our investor loans are business-purpose loans on non-owner-occupied property. To get a quote, use the form below. The items that speed up a Baltimore file are listed here.
Yes. Many bridge loans in Baltimore are on vacant rowhouses that need full rehabs. Check for vacant building notices and violations before closing.
It is a lease on the land under some homes. Title should identify it, and it may need to be redeemed or addressed at closing.
Yes. Baltimore City requires a rental license, including an inspection, before you lease.
Not always. Some bridge programs require no appraisal, while others use a valuation. The DSCR refinance at the end will normally include an appraisal, because that loan is sized on value.
Yes. Most investors take bridge loans in an LLC or other entity. You may still need to sign for the loan personally.
Yes. Residential bridge loans cover 1 to 8 units. Buildings with 9 or more units are commercial and are handled through our commercial and multifamily programs.
Residential investor bridge loans run from $150,000 to $5M+ on 1 to 8 unit property. The amount depends on the purchase price, rehab budget, after-repair value and your experience.
No. Our investor loans are business-purpose loans on non-owner-occupied property. We do not finance a home the borrower lives in.
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