A Maryland DSCR loan is business-purpose financing on a 1-4 family rental, secured by a mortgage or deed of trust. Maryland's recordation tax is charged per $500 of the debt secured at a rate each county sets, under Tax-Property 12-103.
Maryland's closing costs depend on the county, and its foreclosure process sends even a power-of-sale sale back to the court for ratification. Both are worth knowing before you compare loan offers on a Maryland rental.
If the Maryland property is a condo, the building matters as much as the unit; see how lenders review condo projects.
How does Maryland's recordation tax work on a rental property loan?
Maryland charges a recordation tax measured per $500 of the principal debt secured, at a rate set by each county under Tax-Property 12-103.
- The tax is measured on the principal amount of debt secured by the instrument.
- Each county sets its own rate, so the same loan amount can cost differently by county.
Exception: Some refinances and other transactions qualify for exemptions that were not researched here. Get the county's figure from the title company.
According to Md. Code, Tax-Property 12-103, Maryland General Assembly, as of October 2026.
How are rental property loans foreclosed in Maryland?
Maryland allows foreclosure under a power of sale or an assent to a decree, and the sale takes effect after final ratification by the court, under Real Property 7-105(c).
- Real Property 7-105(b)(1) treats mortgages and deeds of trust in parallel for sales under a power of sale or assent to a decree.
- Real Property 7-105(c) requires final ratification of the sale by the court.
Exception: Maryland's separate court-filing requirements for power-of-sale foreclosures (7-105.1) were not reviewed here.
According to Md. Code, Real Property 7-105, Maryland General Assembly, as of October 2026.
Does Maryland limit prepayment penalties on rental property loans?
Commercial Law 12-105(d) bars prepayment penalties on a mortgage loan as defined in Financial Institutions 11-501, a definition tied to personal, family or household use; whether the separate limit in 12-105(c)(4) for loans secured by a home applies to a rental is not settled by the text.
- Commercial Law 12-105(c)(4) allows a prepayment charge only within three years, capped at two months' advance interest on prepayments above one-third of the original loan in any 12 months, for loans secured by a home or a home and business property.
- Whether a rental you don't occupy counts as a home under that subsection was not resolved.
Exception: Ask the lender whether it applies 12-105(c)(4) to its business-purpose loans, and get the answer in writing.
According to Md. Code, Commercial Law 12-105 and Financial Institutions 11-501, Maryland General Assembly, as of October 2026.
What Maryland landlord rules affect a rental property's numbers?
Maryland caps a security deposit at one month's rent per unit, with an exception up to two months for certain tenants on utility assistance, and requires its return with interest within 45 days after the tenancy ends, under Real Property 8-203.
- Real Property 8-203(b)(1) sets the one-month cap.
- Real Property 8-203(e)(1) sets the 45-day return with interest.
Exception: Local laws can add deposit rules. Check the county where the rental sits.
According to Md. Code, Real Property 8-203, Maryland General Assembly, as of October 2026.
Local guides for Maryland: Baltimore City, Montgomery County, Prince George's County, Baltimore County, Anne Arundel County, Howard County.
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This page is general education about business-purpose real estate financing and state law as published by official sources on the date shown. It is not legal, tax or lending advice, not an offer to lend and not a rate quote. Laws and lender guidelines change; confirm current rules with the lender, the title company and your own attorney or tax adviser.