2025 Real Estate Loans in Maryland for Investors Now

Commercial Real Estate Loans in Maryland: 2025 Investor’s Guide

Maryland’s dynamic commercial real estate (CRE) landscape offers lucrative opportunities for investors and business owners. In 2025, robust demand continues to drive investment in office complexes, multifamily developments, retail centers, and industrial properties—particularly across thriving urban and suburban areas. This guide provides a comprehensive overview of the available commercial real estate loan options in Maryland, local market intelligence, top lenders, and the step-by-step financing process to empower your next acquisition or development project.

Maryland Commercial Real Estate Loan Types in 2025

As market fundamentals adjust to new economic realities—such as evolving work patterns, shifting retail, and strong multifamily demand—investors must understand the best-fit financing for their CRE strategy. The most popular options in Maryland this year:

• Bridge Loans: Short-term, flexible loans for quick acquisitions, repositioning, or value-add projects.
• Commercial Mortgages: Long-term financing for stabilized income-producing properties with attractive fixed or floating rates.
• Construction Loans: Funding for ground-up developments or major renovations, typically interest-only during the build period.
• Multifamily Loans: Specialized financing for apartment and mixed-use properties, with options through banks, agencies, and private lenders.

Spotlight: Bridge Loans in Maryland’s 2025 Market

Bridge loans are increasingly essential in Maryland’s fast-paced CRE environment. These loans provide interim financing—usually 12-36 months—for investors needing to secure a property, complete renovations, or await long-term stabilization before refinancing to a permanent mortgage. Bridge loans are popular among buyers capitalizing on distressed assets in cities like Baltimore or executing value-add strategies in suburban business hubs.

Need capital? GHC Funding offers flexible funding solutions to support your business growth or real estate projects. Discover fast, reliable financing options today!

Test Your Expertise: The Complexities of the 1031 Exchange

As a sophisticated real estate investor, you understand that the 1031 Exchange is a cornerstone strategy for tax deferral and wealth accumulation. But beyond the basics, the intricacies of the 1031 Exchange rules can pose significant challenges. This quiz is designed to test your in-depth knowledge and highlight critical nuances that separate casual investors from true experts in 1031 Exchange transactions.

Instructions: Choose the best answer for each question.

Start Quiz

Page 1 of 5

Question 1: Understanding "Like-Kind" in a 1031 Exchange

Which of the following scenarios most likely qualifies as a like-kind property exchange under IRS Section 1031, allowing for 1031 Exchange tax deferral?

a) An investor exchanges a portfolio of publicly traded REIT stocks for a commercial retail building. b) An investor exchanges their primary residence, used for personal living for 15 years, for a duplex intended for rental income. c) An investor exchanges raw land held for appreciation in Texas for a stabilized apartment complex in Florida, both held for investment. d) An investor exchanges a classic car collection (personal property) for a single-family rental home (real property).

Page 2 of 5

Question 2: Navigating the 45-Day Identification Period for a 1031 Exchange

An investor sells a multi-family property on June 15th for a 1031 Exchange. According to the strict timelines, by what date must they identify their replacement properties to comply with the 1031 Exchange requirements?

a) July 30th of the same year, as the 45-day period includes weekends and holidays. b) August 29th of the same year, allowing for an extra 45 days if needed. c) December 12th of the same year, aligning with the 180-day completion period. d) January 1st of the following year, if they plan to file for an extension.

Page 3 of 5

Question 3: The Role of a Qualified Intermediary (QI) in a 1031 Exchange

Why is the engagement of a Qualified Intermediary (QI) absolutely critical for the validity of a 1031 Exchange?

a) The QI provides investment advice and helps the investor choose the best replacement property for their 1031 Exchange strategy. b) The QI acts as a liaison with the IRS, directly negotiating tax liabilities related to the 1031 Exchange process. c) The QI holds the proceeds from the relinquished property's sale, preventing the investor from having "constructive receipt" of funds, which would invalidate the 1031 Exchange. d) The QI provides legal and tax advice to ensure the 1031 Exchange is perfectly compliant

Page 4 of 5

Question 4: Understanding "Boot" and its Impact on a 1031 Exchange

An investor sells a commercial building with $500,000 in equity for a 1031 Exchange. They purchase a replacement property for $450,000, effectively reducing their debt by $50,000. What is the tax implication of this scenario within the 1031 Exchange framework?

a) The entire 1031 Exchange is disqualified because the investor "traded down" in value. b) The $50,000 in reduced debt is considered "boot" and will be immediately taxable as partial gain in this 1031 Exchange. c) There are no immediate tax implications, as the primary goal of the 1031 Exchange is only about the "like-kind" nature of the properties. d) The investor can defer the $50,000 as long as they pay off other personal debts with the funds, still qualifying for a full 1031 Exchange.

Page 5 of 5

Question 5: Advanced 1031 Exchange Strategies & Flexibility

An investor aims to sell a highly appreciated single-tenant retail property and replace it with multiple smaller, diversified multi-family units to spread risk. Which of the following 1031 Exchange identification rules best allows for this diversification strategy, maintaining eligibility for a 1031 Exchange?

a) The "Three Property Rule," where the investor can identify up to three properties of any value, regardless of the relinquished property's value, for their 1031 Exchange. b) The "200% Rule," allowing identification of any number of properties, provided their aggregate fair market value does not exceed 200% of the relinquished property's value for the 1031 Exchange. c) The "95% Rule," which states that if more than three properties are identified, the investor must acquire at least 95% of the aggregate value of all identified properties to qualify for the 1031 Exchange. d) All of the above are valid identification rules within a 1031 Exchange, offering flexibility for various investment strategies.

Ready to send

Please provide your contact information to proceed.

Email Address *

First Name *

Consent *

Yes, I agree with the privacy policy and terms and conditions.

Submit

The Ultimate DSCR Loan for Rental Property Quiz

Are you looking to expand your real estate investment portfolio? A DSCR loan might be the perfect tool to help you achieve your goals without relying on traditional income documentation. Test your knowledge with this quiz to see if you're ready to master the intricacies of a DSCR loan for rental property.

Start Quiz

Page 1 of 5

What is the primary factor a lender considers when approving a DSCR loan for rental property? A) The borrower's personal income and debt-to-income (DTI) ratio. B) The borrower's credit score and employment history. C) The property's potential rental income compared to its monthly expenses, known as the Debt Service Coverage Ratio. This is the key metric for a DSCR loan for rental property eligibility and approval. D) The total value of the borrower's existing investment properties and personal savings.

Page 2 of 5

How does a DSCR loan for a rental property differ from a conventional mortgage for a personal residence? A) A conventional mortgage requires a DSCR calculation, whereas a DSCR loan for a rental property does not. B) A DSCR loan for a rental property primarily focuses on the property's cash flow, allowing investors to qualify without traditional income verification, unlike a conventional mortgage which is based on personal income and liabilities. C) A conventional mortgage has a higher interest rate and stricter requirements than a DSCR loan for a rental property. D) A DSCR loan for a rental property is only available for commercial properties, not residential rental properties.

Page 3 of 5

What is an ideal Debt Service Coverage Ratio (DSCR) for a lender when evaluating a DSCR loan for a rental property? A) A DSCR of 0.75, indicating the property generates 75% of the income needed to cover its debt service. B) A DSCR of 1.00, meaning the property's income exactly equals its debt service. C) A DSCR of 1.25 or higher, as this indicates the property's income is greater than its expenses, making it a strong candidate for a DSCR loan for a rental property and providing a buffer for unexpected costs. D) A DSCR of 2.00, which is the standard minimum for all investment properties, regardless of location or market conditions.

Page 4 of 5

Which of the following expenses are typically included in the calculation of the Debt Service Coverage Ratio for a DSCR loan for a rental property? A) The property's mortgage payment (principal and interest), property taxes, and insurance, which are the core components used to determine if the property can support the debt. B) The property's mortgage payment, property taxes, insurance, and the borrower's personal credit card debt. C) The property's monthly rental income and all utility bills, regardless of who pays them. D) Only the principal and interest payment of the loan, as other expenses are not considered in a DSCR loan for a rental property calculation.

Page 5 of 5

Who would most benefit from using a DSCR loan for a rental property? A) A first-time homebuyer with a W-2 salary and a high debt-to-income ratio, who is looking to purchase a primary residence. B) A seasoned real estate investor with multiple properties who wants to expand their portfolio without using personal income to qualify, making a DSCR loan for a rental property the ideal financing solution for their needs. C) Someone looking to finance a primary residence with a low down payment and a government-backed loan. D) An individual with a very low credit score who cannot qualify for any other type of loan.

Ready to send

Please provide your contact information to proceed.

Email Address *

First Name *

Consent *

Yes, I agree with the privacy policy and terms and conditions.

Submit

• Typical loan amounts: $500,000 to $10M+
• Terms: 1-3 years, with interest-only payments
• Rates: 8.00% – 11.50%, depending on risk profile and collateral
• Speed: Funding in as little as 2-4 weeks

Key Commercial Areas and Districts in Maryland

Maryland’s commercial property market is diverse and regionally vibrant. Top investment targets in 2025 include:

1. Downtown Baltimore: Office towers, mixed-use revitalization, and adaptive reuse projects.
2. Montgomery County: Suburban offices, life sciences, and multifamily in cities like Bethesda and Rockville.
3. Prince George’s County: Logistics parks, retail centers, and transit-oriented multifamily.
4. Silver Spring: Transit-oriented office and healthcare facilities.
5. Annapolis Historic District: Boutique hospitality and retail investments.
6. Frederick Technology Corridor: Light industrial, flex space, and emerging tech parks.
7. Columbia Gateway: Corporate office/mixed-use nodes benefiting from population growth and business relocation.

Top Commercial Real Estate Lenders in Maryland (2025)

Several lenders stand out in Maryland for their specialist CRE programs, local presence, and responsive underwriting:

• M&T Bank: Robust bridge and permanent loan options for Baltimore Metro and suburban office/industrial.
• EagleBank: Known for flexible bridge financing and construction loans in Montgomery and Prince George’s counties.
• Fulton Bank: Regional construction and small balance CRE expertise.
• Sandy Spring Bank: Emphasis on local market knowledge and multifamily lending.
• Berkadia: National agency multifamily lending and CMBS products, active across Maryland’s urban markets.
• Walker & Dunlop: Apartment and mixed-use loan specialist, strong presence in Bethesda and Silver Spring.

How to Apply for a Maryland Bridge Loan: Step-by-Step

1. Preliminary Assessment: Evaluate target property, improvement plan, and exit strategy (refinance or sale).
2. Lender Selection: Choose a lender with Maryland-market expertise and suitable bridge loan offerings.
3. Loan Request and Term Sheet: Submit project details, business plan, and experience. Review indicative rates, terms, and closing timelines.
4. Document Submission: Prepare due diligence materials—property appraisals, leases, organizational docs, financial and credit history.
5. Underwriting and Approval: Lender reviews value, business plan, sponsorship, property condition, and legal/title matters.
6. Closing: Review final commitment, execute loan docs, and close. Most bridge lenders in Maryland fund within 2-4 weeks of term sheet acceptance.

Recent Success Stories: Real-World Maryland CRE Bridge Loans

• Baltimore Industrial Repositioning: A local investor secured a $2.1M bridge loan from M&T Bank to acquire and renovate a light industrial warehouse near Port Covington. The 18-month loan, at 9.25% interest-only, funded site upgrades and tenant improvements. Upon stabilization, the sponsor refinanced with permanent financing at a lower fixed rate.
• Bethesda Multifamily Acquisition: A developer used a $4.3M bridge loan from EagleBank (LTV: 75%) to purchase a value-add, 38-unit apartment complex. The two-year interest-only loan at 8.95% enabled renovations and lease-up, after which permanent agency financing was placed.
• Historic Annapolis Retail Conversion: Fulton Bank provided $950K bridge financing for a retail-to-mixed-use conversion. The 24-month loan, interest-only at 10.15%, included funds for façade upgrades, code compliance, and tenant fit-out. The asset reached >90% occupancy within a year, facilitating a profitable refinance.

2025 Maryland CRE Market Outlook & Loan Considerations

✅ Small Business Resources 

• SBA – Small Business Administration
  https://www.sba.gov

• SCORE Mentors (Free Mentoring & Workshops)
  https://www.score.org
• Small Business Development Centers (SBDC)
  https://americassbdc.org

Are You an SBA Real Estate Loan Expert?

Test your in-depth knowledge on using SBA Loans for owner-occupied commercial Real Estate acquisition. These questions delve into the critical details that can impact your business's growth and financial strategy.

Start Quiz

Page 1 of 5

For an existing commercial property, what is the minimum owner-occupancy percentage required for an SBA 7(a) real estate loan, and does this specific scenario qualify?

A manufacturing company plans to acquire a 30,000 sq ft industrial real estate facility using an SBA 7(a) Loan. The company initially needs 18,000 sq ft for its operations and intends to lease out the remaining 12,000 sq ft.

A) 60%; Yes, it qualifies. B) 51%; Yes, it qualifies. C) 75%; No, it does not qualify. D) 60%; No, it does not qualify, as they are leasing out a portion.

Page 2 of 5

Which of the following sets most accurately represents additional cost categories that can typically be financed within an SBA 504 Loan for a commercial real estate project?

Hint: Beyond the straightforward purchase of a commercial real estate property, an SBA 504 Loan is highly effective for comprehensive projects.

A) Business inventory, working capital, and employee salaries. B) Building renovations, long-term machinery essential to operations within the property, and soft costs like architectural fees. C) Advertising expenses, short-term equipment leases, and utility deposits. D) Personal real estate investments, vehicles for personal use, and stock market investments.

Page 3 of 5

Between an SBA 7(a) Loan and an SBA 504 Loan, which program generally offers the lowest typical borrower down payment for a commercial real estate acquisition, and what is that common minimum percentage for established businesses?

A highly profitable professional services firm in a competitive market wants to purchase its office real estate with minimal upfront capital. The firm's owners prioritize cash flow and liquidity.

A) SBA 7(a) Loan; 15% B) SBA 504 Loan; 10% C) SBA 7(a) Loan; 5% D) SBA 504 Loan; 20%

Page 4 of 5

For new construction, what is the initial minimum owner-occupancy percentage required, and what is the maximum timeframe to meet the full owner-occupancy threshold, for an SBA Real Estate Loan?

A fast-growing tech startup plans to construct a new 50,000 sq ft headquarters using an SBA Loan. They will immediately occupy 35,000 sq ft and have a definitive plan to occupy the remaining 15,000 sq ft within two years as their team expands.

A) Initial 51%, full 80% within 5 years. B) Initial 60%, full 80% within 3 years. C) Initial 75%, full 100% within 1 year. D) Initial 51%, full 100% within 2 years.

Page 5 of 5

What is this crucial requirement, and what fundamental principle does it underscore for the lender?

When securing an SBA Loan for a commercial real estate purchase, principal owners with a 20% or greater ownership stake are almost universally required to provide a specific type of assurance beyond the collateral of the real estate itself.

A) A fixed-rate interest payment commitment, demonstrating long-term stability. B) A first-lien position on all personal assets, ensuring full recovery. C) A personal guarantee, signifying the owners' personal commitment to loan repayment. D) A business plan with projected revenue growth of at least 15% annually, showing future viability.

Ready to send

Please provide your contact information to proceed.

Email Address *

First Name *

Consent *

Yes, I agree with the privacy policy and terms and conditions.

Submit

Despite higher interest rates relative to previous years, Maryland’s diverse economy, growing population, and proximity to Washington D.C. fuel ongoing commercial real estate demand. Investors are finding opportunity in:

• Value-add office and flex conversions in urban/suburban nodes
• Multifamily development in Montgomery, Prince George’s, and Frederick corridors
• Industrial/last-mile distribution hubs serving e-commerce growth
• Urban core revitalization projects in Baltimore and Silver Spring

✅ Real Estate Investor Resources

• AirDNA (Short-Term Rental Data)
  https://www.airdna.co

• Rentometer (Rent Comps)
  https://www.rentometer.com
• Zillow Research & Data
  https://www.zillow.com/research

DSCR Loan IQ Quiz!

Test your knowledge of Debt Service Coverage Ratio (DSCR) loans!

Start Quiz

Page 1 of 3

What is the primary factor a lender focuses on when approving a DSCR loan for an investment property? a) The borrower's personal debt-to-income (DTI) ratio b) The property's ability to generate enough income to cover its mortgage payments c) The borrower's credit score history over the past 10 years d) The total number of investment properties the borrower already owns

Page 2 of 3

If a property has a Net Operating Income (NOI) of $5,000 per month and its total monthly debt service (PITI) is $4,000, what is its DSCR? a) 0.8x b) 1.0x c) 1.25x d) 5.0x

Page 3 of 3

Which type of borrower most commonly benefits from using a DSCR loan? a) First-time homebuyers purchasing a primary residence b) Investors with a strong W-2 income and minimal tax deductions c) Self-employed individuals or those with complex income who want to avoid traditional income verification d) Homeowners looking to refinance their primary residence for a lower interest rate

Ready to send

Please provide your contact information to proceed.

Email Address *

First Name *

Consent *

Yes, I agree with the privacy policy and terms and conditions.

Submit

Bridge loans are especially useful in transitional markets—where investors need speed, flexibility, and a partner who understands Maryland’s regulatory and market nuances. Leveraging local lenders accelerates approvals and optimizes deal structure.

Ready to Invest? Your Next Steps

Whether acquiring a mixed-use property in Columbia Gateway or repositioning an industrial asset in Baltimore, understanding Maryland’s commercial lending landscape is your foundation for competitive advantage in 2025. Compare lender programs, focus on a clear exit strategy, and align your capital stack for success.

• Consult with a Maryland CRE financing advisor early
• Prepare detailed pro formas, business plans, and due diligence packages
• Engage with lenders who have deep Maryland market expertise
• Time your bridge loan exit to coincide with project milestones and market conditions

For more on Maryland CRE loan options, current rates, and lender comparisons in 2025, speak with a local specialist or request a customized quote for your next property.

GHC Funding DSCR LOAN, SBA LOAN, BRIDGE LOAN

Contact GHC Funding Today. Main: 833-572-4327 Email: sales@ghcfunding.com

See Full Bio

DSCR LOAN SBA LOAN BRIDGE LOAN