Baltimore rowhouse investors in Canton, Highlandtown, Hampden and Pigtown often hold properties bought well below today's values. A DSCR cash-out refinance can unlock that equity, but city licensing, lead rules and Baltimore City's tax rate all shape the outcome.
In short: Yes. LendingStreet can refinance a Baltimore rental with 1-8 units and pay you cash up to 75% LTV, qualifying on the property's rent with no tax returns required. Loans start at $150,000, the minimum credit score is 620 and standard programs need a DSCR of at least 1.0x after the cash-out. In Baltimore, the city rental license, Maryland lead registration, the high city tax rate and any ground rent on title are the local items to check first.
With a DSCR cash-out refinance, a new loan of up to 75% of the appraised value pays off the old one, and the remaining equity comes to you as cash. Income documents are not part of the file; the rent is.
Underwriting divides rent by the new payment, counting principal, interest, taxes, insurance and any association dues. Because cash-out raises the balance, the ratio drops, and it has to stay at or above the program minimum, 1.0x on standard programs.
Investors use the proceeds to buy another property, fund repairs elsewhere, retire a short-term rehab loan or set aside reserves. The cash comes at closing in one lump sum.
Rowhouses dominate Baltimore City's rental stock, from renovated homes in Canton, Federal Hill, Butchers Hill and Patterson Park to more affordable blocks in Highlandtown, Pigtown, Remington, Charles Village and the neighborhoods around Johns Hopkins. Many larger rowhouses have been converted into two or three units.
Baltimore County surrounds the city and is a separate jurisdiction, with Dundalk, Essex, Parkville, Towson and Catonsville popular for single-family rentals. The county's tax rate is lower than the city's, which changes the ratio on similar rents.
Rents near Johns Hopkins, the University of Maryland campuses and the downtown employers stay firm, which helps rowhouses in nearby neighborhoods carry a larger loan.
Baltimore City's property tax rate is roughly double that of the surrounding counties, and the homestead credit only applies to owner-occupants. On a city rowhouse, taxes can be the largest line after principal and interest.
Maryland reassesses each property every three years and phases in increases. Use the current bill from the city or county and check whether an assessment increase is still phasing in, since next year's bill may be higher.
Maryland requires most rental units built before 1978 to be registered with the Maryland Department of the Environment and to meet lead risk reduction standards at each turnover. Expect the lender to ask for the registration and current lead certificate.
Baltimore also has a historic ground rent system, where a separate party owns the land under some homes and collects a small annual rent. Title will need to address any ground rent. Older rowhouses can have roof, party wall and basement water issues that appraisers and insurers note.
Baltimore City requires a rental license for non-owner-occupied rental dwellings, issued after an inspection by a Maryland-licensed home inspector, and licenses must be renewed. A missing or expired license can stop a refinance, so confirm it is current.
Baltimore County runs its own rental registration program. Properties with open code violations or vacant building notices need those cleared before closing.
This example is illustrative and not a quote. An investor owns a renovated Canton rowhouse that appraises at $380,000 with an existing payoff of $160,000. Rent is $2,750 a month, city taxes run $720 a month and insurance is $110.
At 75% LTV the new loan is $285,000, which leaves about $125,000 after the $160,000 payoff, before closing costs. Estimated principal and interest on a 30-year schedule is about $1,993, so the total payment is about $2,823 and the DSCR is about 0.97x, below the 1.0x standard minimum. At 70% LTV the loan is $266,000, the payment drops to about $2,690 and the DSCR is about 1.02x, with about $106,000 in cash before closing costs.
On many programs the appraiser's market rent estimate is weighed against the lease, so a lease well above market may not count in full. Use current tax and insurance figures, not last year's, when you test your own numbers.
| Item | At 75% LTV | At 70% LTV |
|---|---|---|
| Appraised value | $380,000 | $380,000 |
| New loan amount | $285,000 | $266,000 |
| Existing loan payoff | $160,000 | $160,000 |
| Cash before closing costs | $125,000 | $106,000 |
| Estimated principal and interest | About $1,993 | About $1,860 |
| Taxes and insurance | $830 | $830 |
| Total monthly payment | About $2,823 | About $2,690 |
| DSCR at $2,750 rent | About 0.97x | About 1.02x |
Maryland and its counties charge recordation tax on deeds of trust, and on a refinance by the same borrower the tax often applies mainly to new money above the existing principal. Ask your title company for the figure early, since it can be a meaningful line on a cash-out.
Seasoning rules vary by program: some allow a cash-out soon after purchase, while others want several months of ownership or limit the loan to cost plus documented improvements.
Having these ready shortens the time from application to closing.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, estimated value, payoff, rent and how much cash you want, and we will run the ratio at a few loan amounts using realistic taxes and insurance for Baltimore City.
You will get options showing the cash available at each loan size, including sub-1.0 DSCR programs where they fit. Call (877) 298-1001 or use the form below to get a quote. For statewide rules, see our Maryland cash-out page.
In practice, yes. Non-owner-occupied rentals in the city require a license, and lenders expect it to be current.
The city rate is much higher than in surrounding counties, so the tax line takes a bigger share of rent. That can lower the loan amount the ratio supports.
Two things: the 75% LTV cap on cash-out and the ratio at the new payment. Whichever produces the smaller loan sets the amount.
Seasoning varies by program. Some allow a cash-out soon after purchase; others require several months of ownership or cap the loan at cost plus documented improvements.
None. The rent qualifies the loan. Expect a credit check, a 620 minimum score, reserves and LLC documents if applicable.
Some Baltimore homes sit on land owned by someone else who collects a small annual rent. It does not block a refinance, but title must document it.
Yes. We finance 1-8 unit rentals across Baltimore City, Baltimore County and Maryland.
Yes, if the second unit is legal and licensed. The appraisal will reflect the unit count the city recognizes.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.