Maryland Private Mortgage

About Maryland Private Mortgage

Maryland Private Mortgage is an Owings Mills, MD based hard money lender. They offer loans in Maryland and Delaware. They provide loans for a variety of situations, including investment property loans and fix-and-flip hard money loans. Their lending guidelines are flexible, including terms between 1 year and 5 years and loans with a maximum LTV of 65%. They primarily make loans on single family residences and multi family.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans

Property Types Covered: Single Family, Multi Family

Areas Served: MD, DE

Lending Guidelines for Maryland Private Mortgage

Below are the general loan guidelines published on the Maryland Private Mortgage website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Maryland Private Mortgage.

Loan Example 1

Rafael is a house flipper in Baltimore, MD. He locates an older property and wants to remodel it and sell it for a profit. The property has a cost of $280,000 but he doesn't have the full amount so he obtains a private money loan with Maryland Private Mortgage. As the lender sets a 70% loan-to-value, Rafael will have to put 30% down so the amount of the note will be $196,000. The terms of the note also include a two point origination fee which is to be paid at the closing and a 12 month, interest only note with a 8% rate of interest.

Rafael must contribute a total of $32,400 up front to cover the $84,000 down payment in addition to the $3,920 origination fee. The lender will collect $1,307 in monthly interest from the Rafael. This is computed by taking the total note amount of $196,000, multiplying that by the 8% rate of interest, and then dividing that amount by 12. If Rafael meets his goal of a $364,000 total sales price when the loan expires, he would collect a total profit of $64,400 after repaying the principle amount and deducting the money he brought to closing, the origination points, and the monthly interest payments.

Loan Example 2

Adele is a real estate investor in Baltimore, MD. She finds an older house for a remodeling project and takes out a hard money loan from Maryland Private Mortgage with the following terms:

$300,000 sales price
85% loan to value (LTV)
12 month term
9% interest rate
1% origination fee

Adele intends to sell the project when the note expires for $405,000. If she succeeds, the final numbers will be the following:

$405,000 sales price
- $255,000 principle (85% LTV)
- $45,000 cash paid at closing (15% on 85% LTV)
- $2,550 origination points (1% of the $255,000 principle amount)
- $22,950 interest payments (12 months x 9% interest)
-----------------------
= $79,500 gross profit (does not include taxes or rehab costs)

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