Acquisition Loans in Maryland
Sometimes the best move is the simplest one: buy the property now, handle improvements with your own capital, and choose permanent financing on your timeline. Property Flip Loan structures acquisition-only loans for real estate investors who want maximum flexibility without rehab draws.
Bottom line: We finance the purchase only—no construction draws—so you can close fast, control your rehab spend, and move quickly to your exit (sale or refinance).
Buying in a specific area? See our local pages for Baltimore County, Montgomery County and Prince George’s County, or towns like Towson, Rockville and Silver Spring. We lend across all of Maryland, plus DC and Virginia: see every area we lend in.
Business-purpose loans only. Non-owner-occupied properties.
Why Investors Choose Property Flip Loan
Speed to close: Win time-sensitive deals (pre-auction, off-market, tight contracts).
Simple structure: Interest-only, short-term loan with no prepayment penalty.
Keep control of the rehab: You fund renovations directly—no draw inspections or delays.
Flexible exits: Refinance to DSCR, bank portfolio, or conventional once stabilized.
Local expertise: Focused on Maryland, Washington, DC, and Virginia—we know the submarkets and comps.
Key Criteria (Snapshot)
Term: Up to 12 months (extensions available)
Leverage: LTV must not exceed 70% (typically the lesser of 70% of as-is value or purchase price)
Prepayment: No prepayment penalties
Credit: No minimum score (we underwrite the deal, experience, and exit)
Use of Funds: Acquisition only (no rehab draws)
Structure: Usually 1st lien, interest-only monthly payments
(We don’t publish rates online; terms depend on the project, sponsor, and market.)
What Is an Acquisition-Only Loan?
An acquisition loan funds the purchase of a property—period. Investors use this when they:
Need to close quickly and will handle renovations out-of-pocket.
Want to avoid draw processes during a light or fast rehab.
Plan to stabilize and refinance into long-term debt once rents and DSCR support it.
This is a common structure across real-estate financing—“acquisition” specifically means capital to obtain the asset (not to improve it). Capital Impact Partners
Where Acquisition-Only Shines (Use Cases)
Beat the clock (auctions & deadlines): Many auctions require proof of funds and have compressed timelines; an acquisition loan helps you close now and refi later.
1031 exchange: When you must identify within 45 days and close within 180 days, fast purchase funding can preserve the exchange while you line up permanent debt.
Light-touch or rent-ready deals: Minimal work needed? Skip the complexity of a construction holdback and move straight to stabilization.
Portfolio strategy: Use quick purchase capital to sequence acquisitions, then refinance each asset as DSCR and operating history come together.
Value-add with your own cash: If you already budgeted rehab funds (or have cheaper capital), keep control of scope, timing, and vendor payments.
Seller won’t wait for a bank: Close on the seller’s timeline; refinance with the bank’s timeline.
Underwriting Focus (What We Look For)
As-Is Value & LTV: We verify as-is value and size up to 70% LTV to protect downside and ensure refinanceability. LTV = loan ÷ appraised value.
Exit plan: Clear take-out strategy (DSCR/conventional/bank), with timing that aligns to your stabilization plan.
Refi metrics: Expect take-out lenders to look for DSCR ≈ 1.20x+ (NOI ÷ total debt service). We like deals trending to or above that threshold.
Borrower liquidity: Since you’re funding rehab, we’ll confirm available cash/reserves.
Scope & timeline: Even without draws, a realistic scope prevents surprises.
Insurance & title: Proper coverage and clean title—standard risk controls.
How Our Acquisition-Only Loans Work
Send a Deal Snapshot: Address, purchase price, as-is value, exit plan, timeline.
Size the Loan: Up to 70% LTV (as-is) or 70% of purchase—whichever is lower.
Close Fast: Title, insurance, entity docs. Interest-only, no prepay penalty.
You Execute Rehab: You pay vendors directly—no draws from us.
Refi or Sell: Pay off anytime once your take-out loan or sale is ready.
Example: Quick Close, Light Rehab
Purchase Price: $300,000
As-Is Appraised Value: $315,000
Max Loan @ 70% LTV (as-is): $220,500
Borrower Cash to Close: Remainder + closing costs
Borrower Funds Rehab: $25,000 light updates from their own capital
Exit: Lease-up to $3,000/mo and DSCR refi at 70–75% LTV once stabilized (target DSCR ≥ ~1.20x).
Result: You win the deal quickly, execute a fast mini-reno without draw friction, then refinance into a 30-year DSCR loan and pay us off early (no penalty).
Eligible Property Types
Residential investment: SFR, townhomes/rowhomes, 2–4 unit small multifamily
Select small commercial/mixed-use: Case-by-case when exit is clear
Not eligible: Owner-occupied/consumer-purpose properties
Documents We’ll Request
Purchase contract (or ownership docs if already owned)
As-is valuation (BPO or appraisal), recent comps
Proof of funds for your rehab + reserves
Basic scope & timeline (even for light renos)
Entity docs & ID; insurance (lender loss payee)
FAQs
Do you finance rehab on this program?
No—acquisition only. If you want rehab funding and draws, check our Fix & Flip or Rehab-to-Rental (BRRRR) programs.
Why choose acquisition-only if I’m renovating?
Speed and control. You skip draw logistics, pay subs directly, and often close faster—useful for auctions, 1031s, or light-touch projects.
How fast can you close?
With a complete file and clear title, often in days—that’s the core advantage of this structure.
What DSCR do take-out lenders look for?
Many target ≈1.20x+ (NOI ÷ debt service), but requirements vary. We’ll help you structure to meet your likely take-out.
Any prepayment penalty?
No—pay off anytime.
Ready to Lock Up the Deal?
Send a 6-Line Acquisition Snapshot for quick terms:
Address:
Purchase price & as-is value:
Use of funds: Acquisition only
Rehab scope & budget (you-funded):
Exit & timeline: Refi or sale + target date
Sponsor notes: Experience & liquidity