Maryland Private Money Lending:
Licensing, Compliance & Documents

By Anthony Geraci, Managing Partner & CEO, Geraci LLP  |  January 2026

Maryland is an active private money lending market, particularly in the Baltimore metropolitan area and the Washington D.C. suburbs in Montgomery and Prince George's Counties. Strong rental demand and fix-and-flip activity drive the market. Lenders should pay particular attention to Maryland's usury limits and licensing requirements.

This guide covers the essential licensing, usury, foreclosure, and document requirements for private money lenders originating loans in Maryland.

Related: Usury Laws by State  |  Deed of Trust vs. Mortgage Guide  |  How to Lend in Multiple States

Licensing Requirements

Maryland requires a Mortgage Lender license from the Office of the Commissioner of Financial Regulation for companies making consumer mortgage loans. Private money lenders making solely business-purpose loans may qualify for exemptions but should verify with counsel.

Key Compliance Considerations

Maryland's foreclosure process is technically non-judicial but requires filing an Order to Docket with the circuit court, which provides some judicial oversight. The process includes required mediation for certain owner-occupied properties.

Maryland's 8% consumer usury limit is relatively low. Private money lenders must ensure their loans are properly documented as business-purpose to avoid this cap.

Maryland requires specific disclosures for mortgage loans and has consumer protection provisions that apply to residential lending.

The state imposes a recordation tax and transfer tax on real estate transactions that affect closing costs.

Document Requirements for Maryland Private Money Loans

Maryland private money loans require a deed of trust as the primary security instrument, along with a promissory note, loan agreement, personal guaranty (for entity borrowers), and state-specific disclosures and compliance riders. For fix-and-flip and construction loans, draw agreements, scope of work exhibits, and completion guarantees are also required.

Automate Loan Docs generates complete, Maryland-specific document packages that comply with all applicable state requirements. Every template is drafted by the attorneys at Geraci LLP, whose team has over 30 years of combined experience advising private money lenders across all 50 states — including extensive experience with Maryland lending transactions.