Maryland DSCR Loan Lenders for Long-Term and Short-Term Rentals

RCN Capital, a national direct private lender, funded a $256,014 loan for the purchase of a single-family residence in Laurel, Maryland, a mostly residential suburban community conveniently located 20 miles from both Washington D.C. and Baltimore. The purchase price was $365,000. RCN Capital funded 70% of the purchase in 1st lien position and the Borrower contributed a 30% cash down payment at closing. The Borrower was an experienced investor looking to purchase and hold a long-term, cash-flowing rental property. They had an average credit with a mid-score of 688 and bank statements that reflected a balance of $592,962.03 in assets/liquidity. The loan was structured and priced in accordance with RCN’s qualification model. The Appraiser’s estimated combined market rent is $2,325/month, which resulted in a 1.10 DSCR. The fixed interest rate was 6.42% and the loan term was set at 30 years. We charged 3% origination points, and the broker earned a $3,200 commission. The property was in good condition with an approximate square footage of 1,520. It was already tenant-occupied at the time of funding. This DSCR rental property loan was funded in September 2022.