Commercial Real Estate Loans in Maryland for 2025 Now

Commercial Real Estate Loans in Maryland: 2025 Investor Guide

Maryland’s diverse and resilient commercial real estate market continues to offer substantial opportunities for investors in 2025. From thriving urban centers like Baltimore to the tech corridors of Montgomery County, prudent investors are securing capital via a wide array of commercial financing products. This authoritative guide covers everything you need to know about commercial real estate (CRE) loans in Maryland, with a spotlight on multifamily financing, and provides actionable insights for a successful transaction.

Maryland’s 2025 CRE Investment Landscape

With robust demand in sectors such as multifamily, office, and industrial, Maryland remains a magnet for CRE investors:

• Baltimore Inner Harbor: Popular for mixed-use and multifamily projects.
• Silver Spring: Bustling with transit-oriented developments and new apartments.
• Rockville Pike Corridor: Retail and multifamily hotspots with strong demographics.
• National Harbor: Tourism-driven retail and hospitality developments.
• BWI Business District: Logistics and industrial growth with airport access.
• Frederick Tech Corridor: Biotech and office clusters, attracting steady investment.
• College Park: Student housing and multifamily demand tied to the university.

Why Choose Multifamily Financing in Maryland?

In 2025, multifamily remains one of the most resilient and in-demand asset classes in Maryland. The state’s stable job market, growing population, and strategic location near Washington, D.C. and Philadelphia, make multifamily properties a lucrative option for both local and out-of-state investors. Multifamily financing offers competitive rates, leverage, and long-term stability.

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

Key Multifamily Loan Types

• Permanent Agency Loans: 5-30 year fixed rates, non-recourse (Fannie Mae, Freddie Mac)
• Bank and Credit Union Portfolio Loans: Customized underwriting, local decision-making
• FHA/HUD 223(f) Loans: High leverage, low fixed rates, for acquisition/refinance of stabilized properties
• Bridge Loans: Flexible, short-term capital for acquisitions, repositioning, or value-add projects

Major Commercial Lenders in Maryland (2025)

1. EagleBank: Headquartered in Bethesda, specializing in multifamily and mixed-use lending across the DMV (DC, Maryland, Virginia).
2. SECU Maryland: Maryland’s leading credit union, offers competitive fixed and variable-rate CRE loans.
3. United Bank: Active commercial lender in Baltimore and Montgomery County.
4. PNC Real Estate: National reach, significant Maryland footprint with dedicated multifamily financing teams.
5. M&T Bank: One of the region’s largest CRE lenders, with tailored products for Maryland properties.
6. Walker & Dunlop: Leading Fannie Mae and Freddie Mac lender based in Bethesda, MD, for multifamily investors.

2025 Multifamily Loan Terms in Maryland: What to Expect

Step-by-Step: Applying for a Multifamily Loan in Maryland (2025)

1. Define Your Strategy: Pinpoint property type, submarket (e.g., Silver Spring, Inner Harbor), and investment goals.
2. Gather Document Package: Detailed rent roll, trailing 12-month financials, personal financial statement, business plan, property photos.
3. Engage with Lenders: Connect with local and national lenders—EagleBank, United Bank, Walker & Dunlop, PNC.
4. Obtain and Compare Loan Quotes: Review terms, structure, prepayment penalties, leverage, and recourse.
5. Submit Full Loan Application: Complete lender’s request forms, provide entity docs, order third-party reports (appraisal, environmental, engineering).
6. Underwriting and Due Diligence: Allow 30–60 days for lender review, property tours, and risk assessment.
7. Commitment and Closing: Execute commitment letter, finalize legal due diligence, sign loan docs, close and fund. Most loans close in 45–60 days (agency) or as fast as 30 days (banks/credit unions).

Success Stories: Maryland Multifamily Loan Examples

• Baltimore Midtown Acquisition: A local sponsor secured a $2.8M Freddie Mac Small Balance loan for a 38-unit apartment building, locking in a 6.10% fixed rate for 10 years, 75% LTV, non-recourse, and a 30-year amortization. The financing enabled significant property upgrades and stabilized rent rolls.
• Rockville New Construction: A first-time developer obtained an FHA 221(d)(4) construction-to-perm loan of $5.7M for a new 42-unit Class-A property in Rockville Pike corridor. Financing included a 40-year fixed term at 5.85%, up to 85% loan-to-cost, leveraged through HUD’s multifamily platform.
• Silver Spring Value-Add: Investor acquired a 24-unit 1970s apartment complex with a $1.9M bridge loan from a regional bank to support renovations. 18-month term, 8.25% interest-only, 70% LTV, with an exit plan to refinance into permanent agency debt post-stabilization.
• Bethesda Student Housing Refinance: Owners refinanced a stabilized 55-unit property near NIH for $4.5M with a 7-year fixed-rate PNC Real Estate loan at 6.40%, cashing out $350,000 for further acquisitions.

2025 Maryland CRE Market Intelligence

• The multifamily vacancy rate across major submarkets hovers at 4.7% (Q1 2025), below the 5.5% US average.
• Average effective rent growth was 4.3% statewide (2024–2025), with strongest gains in Silver Spring (6.1%).
• Suburban Class B/C properties see increasing investor demand, given affordability pressures.
• Transit-oriented developments around MARC and Metro lines continue to attract capital.
• Regulatory climate remains favorable: Maryland maintains pro-housing development policies and programs for energy-efficient rehabs.

Tips for Maryland Multifamily Loan Success

• Work with Maryland-based lenders who understand county-specific rent regulations and property tax nuances.
• Leverage loan programs like the Maryland Department of Housing’s Green Energy Multifamily Loan for sustainability upgrades.
• Plan for reserves and contingencies—especially in value-add or transitional assets.
• Strengthen your sponsorship: Lenders favor solid experience and well-capitalized sponsors, but will work with first-timers who partner with reputable local managers.
• Monitor market cycles: Focus on neighborhoods with diversified economic drivers (government, tech, shipping, healthcare).

Frequently Asked Questions: Maryland CRE Loans 2025

What is the minimum down payment for a Maryland multifamily loan?

Usually 20%-25% (up to 15% with FHA).

Can out-of-state investors qualify?

Yes. Lenders may require strong management in place and Maryland-specific legal counsel.

How long does closing take?

Bank/credit union loans typically close in 30-45 days; agency and FHA loans, 60-120 days.

What is the current interest rate environment in Maryland?

2025 rates range from 5.25%-7.25% depending on type, leverage, and credit. Fed tightening has weighed on spreads, but local banks remain aggressive for strong deals.

What makes Maryland’s multifamily outlook strong for 2025?

Population growth, high-value job centers, access to DC and Baltimore metros, and favorable landlord-tenant legislation.

Conclusion: Ready to Invest?

Maryland offers tremendous opportunity for multifamily investors in 2025. Understanding your financing options—and working with experienced, Maryland-based commercial lending teams—will deliver both stability and growth. Whether acquiring, refinancing, or repositioning, multifamily financing is your gateway to success in one of the Mid-Atlantic’s top commercial real estate markets.

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