Maryland has deep roots. It was one of America’s original 13 colonies (becoming a state way back in 1788) and has ties to some of the country’s most iconic figures, like baseball legend Babe Ruth. It’s also where America’s first railroad was built.
It might be where your next chapter starts, too, if you're thinking about investing in rental property here. Yet, even if you're financially ready, buying property in Maryland as a foreign investor can be complicated and expensive. Knowing the process ahead of time makes a big difference. This guide covers the essentials: what the rental market looks like, who’s renting, and how to qualify for a mortgage. Whether you’re just curious or ready to move forward, you’ll walk away with a clearer picture of what to expect. Let’s dive in.
We are providing the following discussion to you for informational purposes only. All investments, including real estate, involve risk, and we encourage you to invest carefully. The information in this article is not intended to replace or serve as a substitute for any legal, real estate, tax, or other professional advice or service. You should consult with a professional in the respective legal, tax, accounting, real estate, or other professional area before making any decisions or entering into any contracts relating to a rental property.
Foreign investors looking to purchase rental properties in Maryland can benefit from DSCR (debt-service-coverage-ratio) loans, a financing option that prioritizes a property’s income potential rather than your personal financial history.
Unlike traditional loans that require proof of personal income, DSCR loans focus on the property’s ability to generate rental revenue.
These loans fall under the non-qualified mortgage (non-QM) category, making them a great fit for non-U.S. residents who want to invest in U.S. real estate without intending to live on-site. For international buyers, DSCR loans help navigate financial and legal hurdles, opening the door to investment opportunities in rental markets like Maryland.
DSCR loans make it easier for international investors to finance U.S. rental properties. Key advantages include:
For foreign buyers, DSCR loans cut through a lot of the red tape. They make it simpler to buy income-producing properties. That Maryland rental you’ve had your eye on? You could close in under a month!
Lenders assess several factors when reviewing DSCR loan applications. Understanding these requirements can help streamline the process and improve approval chances.
Most lenders: Many U.S. lenders prioritize income earned within the country since it’s easier to verify. Foreign income often requires additional paperwork, such as translated bank statements, proof of salary, and U.S. tax returns if applicable. Even with full documentation, approvals can be challenging due to lenders’ unfamiliarity with international financial systems.
Waltz: We know income doesn’t look the same for everyone. Whether you earn in the U.S. or overseas, we look at a wide range of documents, including foreign bank statements, pay slips, and current rental income. We also factor in what the property could earn in rent, so you get a fuller, more realistic review.
Most lenders: Many lenders require foreign investors to put down 30-50% of the property’s purchase price. Some also insist on additional cash reserves to cover unexpected costs, increasing the upfront investment.
Waltz: We’re more flexible than your average lender. While a 30% down payment is typical, qualified borrowers may be eligible for a lower 25% requirement. We also adjust reserve fund expectations based on your financial profile and the rental income potential of the property.
Most lenders: Most U.S. lenders will ask for a passport and visa to confirm your identity. If you're buying as an investor, you might need to set up a U.S.-based LLC. That means filing an operating agreement and a few other business documents.
Waltz: We simplify this step for international buyers. A valid passport is all that’s needed for identification. If an LLC is required, our Investor Toolkit guides you through the setup process, including obtaining an Employer Identification Number (EIN) in minutes.
Most lenders: U.S. lenders primarily rely on domestic credit scores, making it difficult for foreign investors without a U.S. credit history to secure financing. This is true even if they have strong credit in their home country.
Waltz: We understand that building U.S. credit takes time. Instead of requiring a domestic credit score, we review your home country’s credit profile along with other financial indicators to fairly assess your eligibility.
Find out how international investors have benefited from working with Waltz.
Maryland’s real estate landscape offers diverse investment options, each suited to different strategies. The best property for you will depend on your financial goals and lender requirements. Here are a few property types to consider:
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Maryland offers a desirable lifestyle with its proximity to major cities like Washington, D.C. and Baltimore. Plus, there are beautiful coastal areas and plenty of historic charm throughout the state. Here are a few more reasons why you should consider Maryland investment properties:
As Maryland’s largest city, Baltimore boasts a rich history and endless cultural experiences. Baltimore is famous for its place in early American history, poet Edgar Allan Poe, and a handful of professional sports teams. Revitalization projects in Hampden, Station North, Highlandtown, and others attract new businesses and residents. In fact, Baltimore’s economy is expanding rapidly, with an economic output of $50 billion in 2022, making it one of the fastest-growing cities in the state. Yet, despite Baltimore’s population growth, the city has low property prices compared to neighboring metro areas. All of these factors make Baltimore worth a closer look for foreign investors.
Bethesda is known for its proximity to Washington, D.C. and robust job market. The area is home to major companies like Marriott International and Lockheed Martin, adding to its appeal as a prime real estate location. While housing prices are on the higher end (the average property costs $1.2 million), Bethesda’s rental market benefits from high-income tenants seeking convenience, amenities, and access to top-ranked schools. Investors often find long-term value in single-family, multifamily, and condo properties here.
Columbia is a master-planned community located between Washington, D.C., and Baltimore that is consistently ranked among the best places to live in America. It has everything high-end tenants are looking for: top-tier schools, plenty of green spaces, picturesque neighborhoods, and an ideal commute time. Rentals average around $2,100, which is higher than the nationwide rate. Additionally, Columbia’s downtown area is currently undergoing a revitalization project aimed at increasing commercial development and cultural experiences in the city, which indicates a growing demand for rental properties.
Rockville offers a solid mix of urban convenience and suburban comfort. Rockville offers a good mix of tech, biotech, and government jobs from large employers like GlaxoSmithKline, Adventist HealthCare, and federal agencies. In fact, Rockville’s I-270 Technology Corridor is also known as “DNA Alley,” thanks to the many biotech companies based here. That kind of job diversity feeds into a higher average household income, which is over $120,000 annually. Not to mention, Downtown Rockville is in the middle of a major revitalization project. Walkable streets, new restaurants, and unique shops are just a few of the things that have made Downtown Rockville and the surrounding neighborhoods more attractive to tenants.
Maryland offers a lot of compelling reasons to buy property there. But, as with any state, there are some challenges that can come with owning property there.
Refinancing your Maryland investment property means swapping your current mortgage for a new one. This could be to get better loan terms or tap into your property’s equity for other investments. At Waltz, we make refinancing straightforward, helping Maryland investors get through the process with ease. Whether you want to lower your mortgage rate or free up capital for new ventures, we make it simple. For foreign nationals, the refinancing process usually includes:
A rate-and-term refinance allows you to adjust the terms of your existing mortgage. This helps you to potentially secure a lower interest rate or a more favorable loan structure. Keep in mind that while a lower rate can reduce your monthly payments, the total finance charges over the life of the loan may still be higher, depending on the new terms.
A cash-out refinance lets foreign investors in Maryland tap into their property’s equity by borrowing more than their current mortgage. The extra funds can go toward renovations, growing your investment portfolio, or other financial needs. By reinvesting this money, you can expand your real estate holdings without having to secure new funding.
If you’d like to buy Maryland real estate, you’ve come to the right place. Waltz makes the process of securing a DSCR loan simple. Just follow these steps:
1. Find a profitable investment
Determine your investment goals, whether you’re targeting long-term rental income, a vacation rental, or a future resale opportunity. Choose a property that aligns with your budget and financial objectives.
2. Gather essential documents
Get your paperwork together, including your passport, proof of income (like bank statements or pay slips), and info about the property you’re buying. Having everything in hand will speed things up and make the process easier.
3. Select a lender experienced with foreign nationals
Choose a lender who gets the challenges international buyers face. At Waltz, we help foreign nationals navigate the U.S. mortgage system with solutions that fit their needs.
4. Set up an LLC and U.S. bank account2
For investment properties, setting up a U.S.-based LLC and opening a local bank account is typically required. This process is straightforward, and Waltz can assist in forming your LLC and obtaining an EIN.
5. Submit your loan application
Once you have all of your documents together, it’s time to submit your DSCR loan application. Before you send it off, double-check that all paperwork is complete and accurate.
6. Perform due diligence
Before finalizing the purchase, inspect the property, verify its market value, and review the loan terms carefully. This step ensures your investment aligns with your expectations.
7. Complete the purchase process
Once everything’s in place, sign the final paperwork, transfer the funds, and your new investment property is yours. Congrats, you’re now a property owner in Maryland!
