Hard Money Lenders Baltimore: Fast Funding for Investors
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Kelsey Morrison Former HomeLight EditorClose
Kelsey Morrison Former HomeLight EditorKelsey Morrison worked as an editor for HomeLight's Resource Centers. She has seven years of editorial experience in the real estate and lifestyle spaces. She previously worked as a commerce editor for World of Good Brands (eHow.com and Cuteness.com) and as an associate editor for Livabl.com. Kelsey holds a bachelor’s degree in Journalism from Concordia University in Montreal, Quebec, and lives in a small mountain town in Southern California.
Planning to invest in Baltimore’s opportunity-rich real estate market? Whether you’re flipping a historic property in Mount Vernon or securing a rental in Canton, hard money lenders in Baltimore provide the fast funding necessary to keep your projects moving forward. A hard money loan is ideal for those who need quick access to cash, regardless of credit history or traditional lending hurdles.
If you’re not an investor but need to bridge the gap between buying and selling your home, we’ll share some alternatives that might suit your needs. This guide will cover the basics of hard money lending in Baltimore, helping you make informed decisions about whether this financing option suits your investment or home-buying plans.
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Through our Buy Before You Sell program, HomeLight can help you unlock a portion of your equity upfront to put toward your next home. You can then make a strong offer on your next home with no home sale contingency.
Editor’s note: This post is for educational purposes and is not intended to be construed as financial advice. HomeLight always encourages you to consult your own advisor.
What is a hard money lender?
A hard money lender is a private individual or company providing short-term loans secured by real estate. Unlike traditional banks, hard money lenders in Baltimore focus on the property’s value rather than the borrower’s credit score or income. Their clients often include house flippers and those purchasing rental properties who need quick, flexible funding options.
Hard money lenders determine loan amounts based on a property’s after-repair value (ARV), which is the estimated worth of the property after all renovations are completed. Typically, lenders offer a percentage of the ARV to ensure the security of their investment.
These loans come with higher interest rates, usually between 8% to 15%, and shorter terms, often 6 to 24 months. Additional costs include origination fees, closing costs, and points. Failure to repay can lead to the lender taking possession of the property to recover their investment.
How does a hard money loan work?
Baltimore real estate investors in need of fast and flexible financing may want to consider hard money loans. These loans offer certain advantages, which we’ll outline below, along with how they function.
- Short-term loan: These loans are designed to be repaid in 6 to 24 months, unlike the standard 15- or 30-year mortgage term.
- Faster funding option: Approval and funding can occur within days, compared to the 30 to 50 days typical for conventional mortgages.
- Less focus on creditworthiness: Hard money lenders place less emphasis on your credit score and income history, focusing instead on the property’s value.
- More focus on property value: Loans are secured by the property itself, using the loan-to-value ratio to determine the amount.
- Not traditional lenders: These loans are funded by private lenders or investors, not traditional financial institutions.
- Loan denial option: A viable choice for those with poor credit who have been denied traditional loans but have built-up home equity.
- Higher interest rates: Due to the increased risk, these loans have higher interest rates compared to conventional loans.
- Might require larger down payments: You may need a larger down payment, often up to 20%–30% of the property’s value.
- More flexibility: Hard money lenders offer more flexible terms, including less strict debt-to-income ratio requirements.
- Potential for interest-only payments: These loans may allow for interest-only payments initially, offering greater financial flexibility during the repayment period.
What are hard money loans used for?
In the Baltimore real estate market, hard money loans address specific needs. They can be a good option for investors who need funding quickly or who might not qualify for traditional loans. Here’s a look at common uses for hard money loans:
Flipping a house: Baltimore investors looking to flip homes can benefit from hard money loans, which allow them to quickly secure cash for property purchases and renovations. These short-term loans are designed to help investors buy, renovate, and resell properties in a short period of time.
Buying an investment rental property: For those shopping for rental properties, hard money loans provide fast funding for purchases and immediate repairs. This allows landlords to complete necessary renovations and begin generating rental income sooner than with traditional loans.
Purchasing commercial real estate: Hard money loans are perfect for commercial real estate deals that need to close quickly. Their speed and flexibility can make all the difference when timing is essential to securing a valuable investment.
Borrowers who can’t qualify for traditional loans: People with significant home equity but poor credit often turn to hard money lenders in Baltimore. These loans rely more on the property’s value than the borrower’s creditworthiness, offering a viable alternative to traditional loans.
Homeowners facing foreclosure: Those facing foreclosure might use hard money loans to refinance or buy time to sell their home. This can help avoid losing their property and the negative impact of foreclosure on their credit score.
How much do hard money loans cost?
The cost of hard money loans is higher due to the quick, flexible funding they offer. Typical costs include:
- Interest rates: These can range from 8% to 15% or more, depending on the risk assessment.
- Origination fees: Lenders may charge 1% to 5% of the loan amount.
- Closing costs: Additional fees at closing can include legal, appraisal, and administrative fees.
- Points: Lenders might charge points (a percentage of the loan amount) upfront.
Online calculators can help you estimate your total costs.
Alternatives to working with hard money lenders
If you’re a homeowner and not an investor, consider these options to leverage your home’s equity:
Take out a second mortgage: A home equity loan or HELOC can offer the funds you need at lower interest rates than a hard money loan.
Cash-out refinance: This allows you to refinance your property and take out cash, typically at lower interest rates than hard money loans.
Borrow from family or friends: Personal loans from family or friends can offer more flexible terms and potentially lower interest rates.
Use a government-backed loan program: FHA, VA, and USDA programs can help with lower down payments and interest rates.
Peer-to-peer loans: Peer-to-peer lending platforms provide loans from individual investors, offering an alternative to hard money loans with potentially different terms.
Specialized loan programs: Consider loans tailored for specific purposes, such as buying fixer-uppers or refinancing an existing investment property.
Request a seller financing option: Sellers might finance the purchase themselves, resulting in lower closing costs and easier eligibility.
How to buy before you sell
Imagine stumbling upon your dream home — perhaps a “Painted Lady” row house in Charles Village or an industrial-style loft overlooking the Inner Harbor. For Baltimore homeowners who wish to buy a new home before selling their current one, HomeLight’s innovative program can simplify the process.
The Buy Before You Sell program allows you to use the equity in your current home to make a competitive, non-contingent offer on a new property. If eligible, you can have your equity unlock amount approved in under 24 hours with no obligation. This allows you to purchase your new home first, then sell your old home, avoiding the inconvenience of moving twice.
Here’s how HomeLight Buy Before You Sell works:
The program charges a flat fee of 2.4% of your current home’s sale price. However, you could wind up saving on moving costs, temporary housing, and possibly even the purchase price of your new home. Plus, HomeLight’s BBYS fees are markedly lower than bridge loan interest rates, which range from 9.5% to 12%.
3 top hard money lenders in Baltimore
Traditional lenders aren’t always the best fit for every real estate deal. If you need to move quickly to take advantage of an opportunity, consider working with one of these trusted hard money lenders in Baltimore.
Pimlico Capital
Founded in 2016 and headquartered in Baltimore, Pimlico Capital serves real estate investors across 30 states, including Maryland. They offer competitive rates and high-leverage loan options, specializing in fix-and-flip, fix-and-hold, BRRRR, and turnkey rental properties. Their rates start at 10.5% for short-term funding and 7.5% for 30-year investment loans.
Lending clientele: Residential real estate investors
Loan criteria: Up to 70% LTV (fix-and-flip), up to 75%–80% LTV (rental)
Pimlico Capital boasts a 5-star rating on Google with over 150 reviews. Customers praise their professionalism, efficiency, and outstanding customer service. “Jacob and his team have been wonderful to work with,” reads a recent review. “They helped me finance a project that no one else could. They were very supportive and helpful, guiding me through the process of buying my first investment property.”
410-855-4600
Maryland Hard Money Lenders
Maryland Hard Money Lenders (MHML), located in Baltimore, was founded by Patrick Freeze, a real estate professional with over 15 years of experience. The company offers fix-and-flip loans, buy-and-hold loans, and bridge financing for non-owner-occupied properties. They lend on a range of properties, including single-family homes, small multi-family properties, commercial properties, and mixed-use properties. Interest rates start at 12%, and borrowers are required to pay at least three points upfront. Loans can close in as few as 48 hours once all the paperwork is submitted.
Lending clientele: Residential and commercial real estate investors
Loan criteria: MHML lends up to 100% of the purchase price and 100% of the rehab cost. Borrowers may need to contribute to the down payment, closing costs, and origination fees.
Maryland Hard Money Lenders has a Google rating of 4.8 stars based on more than 20 reviews. Customers highlight their honesty, professionalism, and efficiency. “I have used Maryland Hard Money Lenders several times,” shared a client. “Each time, they made the process smooth and easy. Now that I have a relationship with them, I can get commitment letters very quickly.”
410-384-3288
Dominion Financial
Baltimore-based Dominion Financial Services (DFS) was founded in 2002 by fellow real estate investors. The company lends in all 50 states and Washington, D.C, and their loan programs include rental loans, fix-and-flip loans, ground-up construction loans, and multi-family bridge loans. To date, they have funded more than 11,000 projects totaling over $3 billion in loans. Borrowers can get approved in just two days, and closing can take as little as 48 hours.
Lending clientele: Residential real estate investors
Loan criteria: Up to 80% LTV (rental), up to 70% ARV (fix-and-flip), up to 90% LTC (new construction), up to 85% LTC (multi-family bridge)
Dominion Financial Services has a Google rating of 4.5 stars based on more than 170 reviews. They are also accredited by the Better Business Bureau (BBB) and hold an A+ rating. Customers highlight their exceptional service, fast response times, and efficiency. “This is probably the best lender I have had the opportunity to work with,” wrote one reviewer. “They are way faster than their competitors and have solved all my financial needs with excellency.”
410-593-1413
Investing in real estate?
Hire an investor-friendly real estate agent who can help you get access to off-market properties at a discount and assess potential rental income based on market trends. HomeLight can connect you with investment property specialists at no cost.
Should I partner with a hard money lender in Baltimore?
Whether a hard money loan is the right choice for your Baltimore real estate investment depends on your needs and goals. Hard money loans are ideal for real estate investors seeking quick financing for projects such as house flipping or acquiring rental properties. These loans typically have higher interest rates and shorter repayment periods, but they offer the advantage of fast, flexible funding.
For homeowners looking to leverage their equity, HomeLight’s Buy Before You Sell program is a great alternative. Instead of dealing with high interest rates, you pay a small flat fee and benefit from a more competitive offer and a smoother moving process.
As with any major financial decision, it’s essential to consider your long-term strategy and consult with a financial advisor. If you’re looking to connect with investor-friendly real estate agents in Baltimore who have access to trusted hard money lenders, HomeLight can introduce you to top professionals in your area who meet those criteria.
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