Guidance Line of Credit

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The BCL Guidance Line of Credit is focused on experienced small to mid-size developers and/or investors who have a need for a committed source of funding. It supports the activity of a borrower who anticipates acquiring and rehabbing a series of properties. This is designed for developers (including non-profits) and individual investors with a vision to rehabilitate properties in low- and moderate-income neighborhoods.

Property Type:

1-4 family residential units for rental or homeownership. Rental investment properties must be refinanced after project completion.


Property must be in a low-to-moderate income neighborhood, preferably a “target” area of Anne Arundel County, Baltimore City, Baltimore County, Carroll County, Harford County, and Howard County.

Additional Requirements:

Rehabilitation is required (minimum $25,000 per unit). BCL may impose certain limitations on the number of units under construction at any one time, as well as initial limitations on the total portion of funds advanced, which may be less than amount of the loan commitment.


12 months with one 12-month extension.

Interest Rate:

WSJ Prime plus 200 basis points (2%) 6% floor. Floating, interest-only.


1.0% to 2.0%

Additionally, we require payment upfront for estimated number of draws at a cost of $150 per draw. Additional draws will require additional payment of fees. Fees for appraisal, loan documents, and closing will be paid by the borrower as needed to complete the loan. Legal fees and reasonable settlement expense are the responsibility of the borrower.


  • 75% of “as-is” acquisition or purchase price
  • Maximum 90% of construction costs
  • Maximum “as completed” loan-to-value 80% of appraised value
  • All valuations, construction budgets, and third-party due diligence must be completed prior to the release of any advances from the line of credit

Debt Coverage Ratio:

1.2X (ratio of net operating income to debt service payments) required for rental property.


Borrower must have an acceptable credit record. While BCL does not have a minimum credit score, credit records with a pattern of recent late payments of debt, delinquencies, foreclosure, bankruptcy, and/or collections may disqualify a borrower.

Loan Features:

BCL will require an interest payment reserve to cover the estimated amount of interest during the term of the loan. Additionally, BCL will require that a minimum of a 10% contingency be added to the cost estimates.


BCL requires that all contractors and sub-contractors be able to show proof of being licensed in the State of Maryland, provide proof of requisite insurance and completion bonds (if applicable), and must be approved by BCL before the start of any construction activity.


  • First lien position on all property acquired or rehabbed with this product
  • First or second lien position on existing real property or liquid assets may be required based on risk and DSCR
  • Assignment of leases and rents, sales contracts, management agreements, and contractor’s agreements.
  • Personal guarantees required by all principals holding 20% or greater interest in the project.

Training (Technical Assistance):

BCL can provide training to refine the development of plans and scopes of works. Based on the amount of assistance required, BCL may require a reasonable fee for this service.

Advance Guidance:

  • Properties must be approved by BCL staff prior to being added to line of credit
  • Borrower equity must be used prior to BCL funding


Borrower must complete an Environmental Review Questionnaire for each property prior to acquisition. The Questionnaire may result in BCL requiring a Phase 1 Environmental or additional studies, prior to releasing funds for acquisition.

Conversion to Permanent Loan:

While not a part of loan term, BCL will consider requests for conversion to a permanent loan when conditions warrant. At minimum, the property must be occupied and leased. Other conditions, fees and approvals may apply.