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This article was authored and professionally reviewed to provide accurate, actionable financial insights.
GHC Funding
Contributing Author
Alyssa writes about real estate investing, debt-free strategies, and emerging trends in small business finance with a focus on practical insights.
Samantha Reyes
Senior Content Editor
Samantha specializes in editorial strategy, compliance review, and refining complex finance topics into accessible, reader-friendly guidance.
Construction & Renovation Highlights
- Financing for ground-up builds and major rehab projects.
- Works for SFR, small multifamily, and select mixed-use/commercial.
- Up to 85–90% of project costs and 70–75% of completed value (case-by-case).
- Interest-only during the build phase for improved cash flow.
Construction Loans in Maryland: What You Need to Know
As a Maryland business owner, you know that the construction industry in our state is booming. With cities like Baltimore, Annapolis, and Silver Spring experiencing rapid growth, there is a high demand for new construction projects. However, with that demand comes the need for proper funding. That’s where construction loans come in. If you are a Maryland business owner looking to expand your current location or start a new construction project, this blog post is for you.
- Construction Loans in Maryland: What You Need to Know
- The Story of a Real Maryland Business Owner
- What is a Construction Loan?
- Why Do Maryland Businesses Benefit from Construction Loans?
- Credit Score Requirements for Construction Loans in Maryland
- How Long Does Approval for a Construction Loan Take?
- Common Mistakes Maryland Business Owners Make with Construction Loans
- Real Case Study: Construction Loan for a Maryland Business in Baltimore
- Frequently Asked Questions About Construction Loans
- Ready to Take the Next Step? Contact GHC Funding Today
The Story of a Real Maryland Business Owner
Meet Joe, the owner of a successful construction company in Maryland. Joe has been in business for over a decade and has built a strong reputation in his community. However, with the recent boom in construction projects, Joe has been receiving more and more requests from clients. While this is great for business, Joe quickly realized that he needed additional funding to take on these new projects.
After researching his options, Joe found out about construction loans. He contacted GHC Funding, and they guided him through the process of obtaining a loan specifically designed for construction projects. With the help of this loan, Joe was able to take on more projects and grow his business exponentially.
Need capital? GHC Funding offers flexible funding solutions to support your business growth or real estate projects. Discover fast, reliable financing options today!
⚡ Key Flexible Funding Options:
GHC Funding everages financing types that prioritize asset value and cash flow over lengthy financial history checks:
DSCR Rental Loan
- No tax returns required
- Qualify using rental income (DSCR-based)
- Fast closings ~3–4 weeks
SBA 7(a) Loan
- Lower down payments vs banks
- Long amortization improves cash flow
- Good if your business occupies 51%+
Bridge Loan
- Close quickly — move on opportunities
- Flexible underwriting
- Great for value-add or transitional assets
SBA 504 Loan
- Low fixed rates through CDC portion
- Great for construction, expansion, fixed assets
- Often lower down payment than bank loans
🌐 Learn More
For details on GHC Funding's specific products and to start an application, please visit our homepage:
What is a Construction Loan?
In simple terms, a construction loan is a short-term loan that provides funding for building or renovating a property. Unlike traditional loans, where the entire amount is released at once, construction loans are paid out in installments as the project progresses. This allows for better cash flow management and ensures that the funds are being used for the intended purpose.
The type of construction loan you need will depend on the nature of your project. For example, if you are constructing a new building from scratch, you will need a different loan than if you are renovating an existing property. It is essential to work with a reputable lender like GHC Funding to determine the best loan option for your specific needs.
Why Do Maryland Businesses Benefit from Construction Loans?
There are several benefits of obtaining a construction loan for your Maryland business:
- Funding for your project: As mentioned earlier, the demand for new construction projects in Maryland is high. A construction loan provides the necessary funding to take on these projects and grow your business.
- Flexible repayment options: Construction loans typically have a longer repayment period than traditional loans, allowing for manageable monthly installments.
- Tax deductions: The interest paid on a construction loan is tax-deductible, which can help lower your tax burden.
- Increased property value: A new construction project or renovation can significantly increase the value of your property, which can lead to higher profits in the long run.
Credit Score Requirements for Construction Loans in Maryland
One of the most common questions we receive at GHC Funding is about credit score requirements for construction loans in Maryland. While there is no specific credit score that guarantees approval, having a credit score of at least 680 greatly increases your chances of getting approved for a construction loan. It is also essential to have a good credit history and a low debt-to-income ratio.
How Long Does Approval for a Construction Loan Take?
The approval process for a construction loan can take anywhere from 30 to 60 days. This timeline may vary depending on the lender and the complexity of the project. It is crucial to have all the necessary documents and information ready to expedite the process.
Common Mistakes Maryland Business Owners Make with Construction Loans
When it comes to obtaining a construction loan, there are a few common mistakes that Maryland business owners make. These mistakes can delay the approval process or even result in rejection. Here are the top three mistakes to avoid:
- Not having a solid plan: Before applying for a construction loan, it is crucial to have a detailed plan for your project, including the timeline, budget, and scope. Lenders want to see that you have a clear vision and a well-thought-out plan for your project.
- Underestimating the cost of the project: One of the most significant factors lenders consider when approving a construction loan is the budget. It is essential to have a realistic budget and include all potential costs to avoid any surprises down the road.
- Not working with a reputable lender: Choosing the right lender is crucial when it comes to construction loans. Working with a reputable lender like GHC Funding can ensure a smooth and successful loan process.
Real Case Study: Construction Loan for a Maryland Business in Baltimore
Let’s take a look at a real case study of a Maryland business in Baltimore that obtained a construction loan through GHC Funding.
ABC Construction is a small business in Baltimore that has been operating for five years. The owner, Sarah, wanted to expand her business and take on more significant projects, but she didn’t have the necessary funds. After doing some research, Sarah decided to apply for a construction loan through GHC Funding.
With the help of GHC Funding, Sarah was approved for a 0,000 construction loan. She used the funds to construct a new commercial building in downtown Baltimore, and the project was completed within the estimated timeline and budget. With the new building, ABC Construction was able to take on larger projects and increase their revenue significantly.
The success of ABC Construction’s project is a testament to the benefits of construction loans for Maryland businesses. With the right lender and a solid plan, any business can take advantage of these loans to grow and succeed.
Frequently Asked Questions About Construction Loans
Here are some common questions that Maryland business owners have about construction loans:
- Can I get a construction loan if I have bad credit?
While having a good credit score greatly increases your chances of approval, it is still possible to obtain a construction loan with bad credit. However, you may have to pay a higher interest rate and provide additional collateral. - Can I use a construction loan for home renovations?
Yes, you can use a construction loan for home renovations or additions. However, keep in mind that these loans are typically for commercial properties, so the requirements and terms may be different. - Can I get a construction loan for a project outside of Maryland?
Yes, GHC Funding offers construction loans for projects in multiple states, including Maryland. Contact us to find out if we can provide funding for your specific location. - What if I don’t have any experience in construction?
Having experience in construction can be beneficial when applying for a construction loan, but it is not a requirement. However, you should have a skilled team of professionals working on your project to increase your chances of success. - Can I use a construction loan to purchase land?
Yes, you can use a construction loan to purchase land. However, the land must be intended for commercial use, and the lender will require a detailed plan for the construction project.
Do you still have questions about construction loans in Maryland? Contact GHC Funding today, and our team of experts will be happy to assist you.
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Compare our top-rated commercial and investment property loan programs below.
- No income verification
- 30-year fixed | Interest-only available
- Great for rental properties + STR
- Fast approvals
- Working capital + business acquisition
- Up to $5M
- Low down payment
- Long-term financing
- Owner-occupied CRE
- Low fixed rates | 25-year terms
- Great for business expansion
- Refinance available
- Best for stabilized properties
- Competitive rates
- 12–25 year terms
- Lower fees than private lenders
Compare Loan Types
Find the Right Financing for Your Real Estate or Business Project
| Loan Type | Best For | Rates | Terms | Highlights | Apply |
|---|---|---|---|---|---|
| DSCR Loan | Rental properties (LTR & STR) | 5.99%+ | 30-year fixed, IO options | No income docs, fast approvals, great for investors | Check My Rate |
| Construction Loan | Ground-up, fix & build, major renovations | 8%–12% depending on scope | 12–24 months interest-only | Flexible draws, great for builders & developers | Get a Quote |
| SBA Loan | Business acquisition, working capital, CRE | Prime + spread | 10–25 years | Lowest down payments, long terms, best for business growth | See My Options |
Ready to Take the Next Step? Contact GHC Funding Today
If you are a Maryland business owner looking to expand or start a new construction project, GHC Funding is here to help. Our team of experts has years of experience in providing funding for various construction projects. Contact us today to see how we can support your business’s growth with a construction loan tailored to your unique needs.
Don’t let lack of funding hold back your business’s potential. Contact GHC Funding and take the first step towards achieving your construction project goals.
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Use these trusted resources to grow and manage your small business—then connect with GHC Funding
to explore financing options tailored to your needs.
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and more—start your funding conversation today.
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