Frederick is not Bethesda, but it is close enough to the Washington market that jumbo rentals exist here. They come in two forms: renovated multi-unit buildings downtown that rent like city apartments, and large homes in Urbana, Middletown and the countryside leased to executives and federal professionals.
In short: LendingStreet offers jumbo DSCR loans of about $1.5M to $5M+ for purchase, rate-and-term and cash-out on high-value 1-8 unit rentals in Frederick and across Frederick County. The loan qualifies on the property's rent, not your personal income. Larger balances get more review, and maximum LTV can be lower; it varies by program.
Downtown Frederick has a small number of seven- and eight-unit buildings, often fully renovated, with apartments that rent at a premium for walkability and proximity to Carroll Creek and the MARC. These can carry jumbo values when rents are strong.
Outside the city, large single-family homes in Urbana, New Market, Lake Linganore and the Middletown valley lease to executives, physicians and federal contractors, sometimes on corporate leases. These homes often have lower rent relative to value, which makes the DSCR the main constraint.
Demand for both property types traces back to the same source: households and companies connected to the Washington and I-270 job markets who want space, quality and a shorter commute than they would find further out. That demand supports rents, but jumbo values in Frederick County still tend to run ahead of rents, which shapes how these loans are structured.
This example is illustrative and not a quote. An investor buys a fully renovated eight-unit building near Carroll Creek for $2,250,000. Each unit rents for about $1,950, for combined rent of $15,600 a month. City and county taxes are about $2,494 a month and insurance about $600.
At 75% LTV the loan would be $1,687,500, with a total payment of about $14,606 and a DSCR of about 1.07x. If the program sets leverage at 70% for this balance, the loan is $1,575,000, the total payment about $13,838 and the ratio about 1.13x.
The renovated downtown building works at either leverage level because its rents are strong and its units are fully leased. An older eight-unit building with below-market rents or vacancies would look very different, and might be better financed with a bridge loan while it is renovated and leased, followed by a jumbo DSCR refinance once the new rents are in place.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $1,687,500 | $1,575,000 |
| Estimated principal and interest | $11,512 | $10,744 |
| Taxes and insurance | $3,094 | $3,094 |
| Total monthly payment | $14,606 | $13,838 |
| DSCR at $15,600 rent | 1.07x | 1.13x |
A large Urbana or Middletown home worth well over $1.5 million may lease for a rent that covers only part of a high-leverage payment. Lower leverage, signed leases at strong rents, or a sub-1.0 DSCR program can help. Some homes sit on acreage, which can complicate appraisal; acreage and property-type limits vary by program. Properties with wells and septic need those systems in good order for insurance and the appraisal.
Corporate and relocation leases are common for executive homes in this area. A signed lease from a relocating employee or a corporate tenant can support the rent used in underwriting, as long as the terms are at market. Short corporate stays may be treated differently from a standard 12-month lease, so tell us how the property is rented.
Maryland's Department of Assessments and Taxation reassesses each property every three years and phases increases in over the following years. A large purchase price can lead to a higher assessment in the next cycle. Investors do not get the Homestead Tax Credit, and properties inside city limits pay city and county rates. Budget on the full assessed value, and on the purchase price if it suggests a higher assessment ahead.
If you are buying a newly renovated building, ask how the current assessment compares with the price you are paying. A large gap usually means a higher assessment is coming, and it is better to budget for that now than to see your ratio slip after the next reassessment cycle. Our team will use a realistic tax figure when sizing the loan.
Renovated downtown buildings built before 1978 still fall under Maryland's lead registration and turnover inspection rules for each unit. Exterior changes in the historic district need commission review. On a jumbo purchase, ask the seller for records of both, since compliance affects your operating costs and value.
Expect a closer review on a jumbo file:
Start early on a large file. Gathering leases, insurance quotes on older buildings, and documentation for the appraisal takes time, and a second appraisal review, when required, can add to the timeline.
Maryland's state transfer tax and county recordation tax scale with price, so they add up on a jumbo purchase. On a refinance, recordation tax generally applies only to new money above the existing balance when the same owner refinances. Ask your title company for exact figures before you finalize your offer or loan amount.
For one property below about $1.5 million, a standard DSCR loan is usually simpler. For several properties, a blanket portfolio loan can combine them under one loan. A jumbo DSCR loan makes most sense for one high-value building or home whose rent supports the payment. Investors with properties in Maryland and nearby states can sometimes use a multi-state portfolio loan.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, value, rents and goal through the form below. For jumbo options elsewhere in the state, see our Maryland jumbo page, or our Washington, DC and Baltimore pages.
Roughly $1.5M to $5M+ on a 1-8 unit rental. Our DSCR programs have no stated maximum.
Mainly renovated multi-unit buildings downtown and large estate homes in areas like Urbana and Middletown.
It varies by program and is often lower on larger balances. The rent still has to cover the payment.
Possibly, with lower leverage or a sub-1.0 DSCR program. Strong signed leases help.
No. The loan qualifies on rent. Larger loans require more reserves.
They affect renovation plans and costs, which matter for value and cash flow.
Yes, subject to program LTV limits and rent coverage at the new payment.
Yes. A blanket portfolio loan can combine five or more 1-8 unit rentals under one loan.
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