Maryland fix-and-flip investors have access to five primary financing instruments: (1) Hard money loans asset-based, fast-closing loans at 10.5%–12.5% annual secured by the ARV of the subject property; (2) Fix-and-flip loans dedicated investment property loans covering both purchase and renovation in a single loan structure; (3) Private money lending negotiated capital from individual investors at 6%–10% for borrowers with established track records; (4) Bridge loans short-term capital that bridges a timing gap between acquisition and permanent financing; (5) Construction loans draw-based financing for projects proceeding in phases. Each instrument has different rates, LTV limits, term lengths and qualification criteria. Selecting the right instrument for the deal type is the financing discipline that protects profit margins.

Maryland fix-and-flip interest rates in 2025/2026 range by financing type: Hard money loans: 10.5%–12.5% annual + 2–4 origination points, generating $1,750–$2,083 per week in interest alone on a $200,000 loan. Fix-and-flip loans from institutional lenders: 9.5%–12.0% + 1–3 points. Private money lenders: 6%–10% negotiated based on relationship strength and deal quality. Bridge loans: 8%–11% + 1–2 points. Construction loans: 7.5%–10% on drawn balance. These rates represent the hard money market in Maryland as of early 2026 rates fluctuate with the federal funds rate and lender risk appetite. Always calculate the full weekly carry cost (interest + property tax + insurance + utilities) when evaluating deal profitability.

Maryland hard money loan closing timelines depend on lender type and deal complexity. Local Maryland hard money lenders (Hard Money Bankers, Rehab Financial Group) can close in 7–10 business days for straightforward acquisitions with clean titles. National hard money platforms (Kiavi, RCN Capital, Lima One Capital) typically close in 10–21 days depending on their underwriting pipeline. Private money lenders with an established borrower relationship can sometimes close in 3–5 business days the fastest option in the Maryland market. Fix-and-flip loan products from institutional lenders typically close in 14–21 days. Construction loans take 21–45 days due to the additional underwriting of the construction scope, budget and timeline.

The 70% rule for Maryland fix-and-flip states that the maximum all-in acquisition price (purchase price only, not including renovation) should not exceed 70% of the after-repair value (ARV) minus the estimated renovation cost. Formula: Maximum Offer = (ARV × 0.70) − Estimated Renovation Cost. On a $380,000 ARV Baltimore City rowhouse with a $65,000 renovation budget: Maximum Offer = ($380,000 × 0.70) − $65,000 = $266,000 − $65,000 = $201,000. The 70% rule builds in approximately 10% for closing costs, carrying costs and profit margin. Maryland investors in competitive markets sometimes push to 75% ARV for strong deals but each percentage point above 70% compresses the margin cushion that protects the deal against renovation overruns, timeline delays and ARV shortfalls.

Hard money loans are primarily asset-based; the lender’s underwriting focuses on the property’s value (ARV), the renovation scope and the borrower’s exit strategy rather than the borrower’s credit score or debt-to-income ratio. Most Maryland hard money lenders require a minimum credit score of 600–640 (lower than conventional lending’s 680–720 minimum). Some local Maryland lenders will work with scores below 600 for borrowers with strong deal metrics, significant experience and substantial cash reserves. What hard money lenders universally evaluate: the property’s ARV relative to the loan amount (LTV), the renovation budget’s credibility, the borrower’s exit strategy (sell vs. refinance), and the borrower’s track record of completed deals.

Maryland hard money loans typically finance 65%–75% of the ARV meaning the borrower needs to fund the difference between the acquisition price and the loan amount from their own capital or a secondary source. On a $250,000 acquisition with a $380,000 ARV and 70% ARV hard money loan ($266,000): the loan covers the full acquisition cost plus part of the renovation budget, and the borrower needs cash for: origination points (2–4% of loan = $5,320–$10,640), closing costs ($3,000–$6,000), initial renovation costs before the first draw is funded (typically the first 20%–30% of the renovation budget = $13,000–$19,500 on a $65,000 renovation), and cash reserves the lender requires as demonstrated liquidity (typically 3–6 months of loan payments). Total Maryland fix-and-flip cash requirement: $35,000–$75,000 per deal depending on deal size and lender requirements.

A draw schedule is the structured process by which renovation loan funds are released to the borrower in phases as renovation work is completed. Instead of receiving the full renovation budget at loan closing, the investor receives draws typically 3–5 during the project after a lender inspector verifies that the previous phase of work is complete. Typical Maryland fix-and-flip draw schedule: Draw 1 (demo, rough-in): released after demo and MEP rough-in are verified; Draw 2 (framing, insulation, drywall): released after drywall is hung; Draw 3 (finish work): released after flooring, cabinets and interior finish work is verified; Draw 4 (final): released at substantial completion. Each draw request typically takes 2–5 business days to process; the investor must plan cash flow to bridge the gap between completing each phase and receiving the draw.