Stack Funding in Maryland | Swift Deal Funding
Stack (Morby Method) Funding in Maryland
Stack funding supplies the cash a Maryland closing needs when a seller carry-back note covers the buyer’s down payment on paper but settlement still requires real funds in escrow to record. We wire the cash to the table; the recorded seller-carry second note repays our principal plus a flat 2.5% — often same-day through the settlement office. Typical funded amounts here run $30,000–$100,000, with capacity to $10 million.
Stack tracks Maryland’s creative-finance activity, and the state offers plenty. Baltimore’s older, equity-rich rowhouse stock and long-time owners produce sellers willing to carry a note, while the higher-priced DC-suburb corridor — Columbia, Germantown, Silver Spring — supports larger carry-back structures on subject-to and owner-finance deals.
How a Stack deal closes in Maryland
Maryland settlements run through a title company or attorney, who records the documents with the county land records (Baltimore City has its own office). The sequence: the seller agrees to a carry-back covering down payment plus costs; we wire the cash needed at the table; settlement executes and the carry-back note records in second position; that recorded note repays us plus 2.5%, typically same-day.
Two Maryland factors shape the carry-back size: high transfer and recordation taxes add to closing costs the carry-back must cover, and a Baltimore ground rent may need addressing alongside recording. Maryland’s wet-funding rule is why Stack exists here — a paper carry-back doesn’t put dollars in escrow, but Maryland demands funds before recording. Have your settlement office quote the full tax figure and confirm the second note records as agreed.
Pricing for Stack in Maryland
Flat 2.5% of the funded amount, collected at close. No upfront fees.
| Funded Amount | Fee |
|---|---|
| $50,000 | $1,250 |
| $100,000 | $2,500 |
| $500,000 | $12,500 |
| Up to $10,000,000 | $250,000 |
Stack Funding Requirements
- Executed purchase contract with seller-financing terms
- Seller carry-back ≥ required down payment + closing costs (including Maryland transfer/recordation taxes)
- Maryland settlement office ready to record the second-position note immediately after closing
- Written confirmation that the note records as agreed
A typical Maryland Stack scenario
A long-time owner of a paid-off rowhouse in Baltimore’s Patterson Park will carry $55,000 to spread out a gain. Your buyer’s lender needs that $55,000 shown as real down-payment funds at settlement, and Maryland’s transfer taxes add to closing costs the carry-back covers. Maryland won’t record dry, so Stack wires $55,000 to the settlement office; the deal records, the carry-back note records in second position, and that note repays us $56,375 — your buyer closes without cash they didn’t have.
Apply for Stack Funding in Maryland
Submit your purchase contract and seller-financing terms online. We coordinate the carry-back recording directly with your Maryland settlement office.
Frequently Asked Questions
Who records the seller-carry second note in Maryland? +
Your settlement office does. Maryland settlements run through a title company or attorney, and the second-position note is recorded with the county Clerk of the Circuit Court (Baltimore City has its own land records office). We need written confirmation that the settlement office will record the carry-back note in second position immediately after closing, because the recorded note repays our funds. On older Baltimore properties, confirm any ground rent is addressed alongside the recording.
How do Maryland's transfer and recordation taxes affect a Stack deal? +
Maryland's transfer and recordation taxes apply to the recorded deed and can apply to the security instrument as well, so a Stack deal carries real recording costs beyond our fee. That matters when you're sizing the seller carry-back: it should cover the buyer's down payment plus closing costs, and those costs include Maryland's taxes. Have your settlement office quote the full figure so the carry-back is large enough. Our flat 2.5% is separate.
Why does Maryland's wet-funding rule matter for Stack? +
Even when a seller carry-back covers the buyer's down payment on paper, Maryland's wet-funding rule means real money must be in the settlement office's escrow before the deed records. That gap is what Stack fills: we wire the cash needed at the table so the closing can fund and record, then the recorded second note repays us plus 2.5% — usually same-day. A paper-only down payment can stall a wet-state closing without it.
Apply for Stack Funding in Maryland
Submit your application online — same-day decisions for complete files before 2 PM Eastern.