DSCR Loans In Maine
Maine DSCR Loan Program Overview
Ridge Street Capital is more than just a national lender — we're the lender of choice for Maine real estate investors looking for reliable funding. This section is here to give you a transparent overview of our Maine DSCR Loan Program and to help you navigate this page to find the informaition you're looking for.
Key highlights:
- Rates as low as 6.0%
- LTV Up to 80% for purchases, Up to 75% for cash outs
- 0% Origination Fee Available
- Quick Funding in as little as 21 days
- Long Term Rentals and Short Term Rentals
To quickly navigate this page, use the following links:
- Rate: 6.95%
- 30 YR (5/6 ARM)
- Origination Fee: 0%
- 25 Days to Close
What Is A DSCR Loan?
A DSCR loan is a non-QM loan program for rental properties where qualification is based on the property's rental income, not the borrower's personal income. Ridge Street measures whether the monthly rent covers the property's principal, interest, taxes, insurance and association fees (PITIA). The program works for long-term rentals, short-term rentals, and multifamily properties up to 10 units, with no limit on the number of financed properties an investor can hold.
DSCR loans are one of the most popular loan programs for Maine real estate investors because they are highly scalable and work well with popular investing strategies like the BRRRR Method and Short-Term Rental Loans.
How to Calculate the DSCR for Your Rental?
The equation for calculating DSCR is:
DSCR = Rent / (Principal & Interest + Taxes + Insurance)
Rent = Appraised Long Term Market Rent or Projected Short Term Market Rents from AirDNA
Principal & Interest = Monthly Mortgage Payment
Taxes = Monthly Property Taxes
Insurance = Monthly Property Insurance
Use our DSCR Calculator to check the debt service coverage ratio of your Maine rental property.
DSCR Loan Down Payment Requirements?
When purchasing a property with a DSCR loan, investors are typically required to put down 20% of the purchase price. In addition to the down payment, they must cover closing costs out of pocket. Ridge Street also requires proof of reserves, six months of mortgage payments (PITI), in the investor’s bank account to meet the loan’s liquidity requirements.
See the DSCR Loan Requirements section of this page for detailed breakdown.
As an investor builds their track record, access to fiancing on larger more complex projects is provided:
- Loan amounts up to 75% of After Repair Value
- Projects with at least 20% projected ROI
- An ARV backed by credible sold comps, not inflated listings
DSCR Loan V.S. Conventional Loan?
- DSCR Loans are designed for real estate investors and qualify based on the property’s rental income (Debt Service Coverage Ratio) rather than the borrower’s personal income or tax returns. They offer faster approvals and more flexibility but usually come with higher interest rates (0.5-1.0% higher) and larger down payment requirements.
- Conventional Loans rely on the borrower’s W-2 income and debt-to-income ratio. They often provide lower rates and smaller down payments, but the documentation and qualification process is stricter, making them less investor-friendly.
Long Term Rental V.S. Short Term Rentals?
DSCR loans in Maine can finance both long-term rentals (LTRs) and short-term rentals (STRs). For LTRs, the DSCR calculation is based on the appraised market rent. For STRs, it uses projected short-term income from AirDNA (see our guide on Airbnb Loans).
Short-term rentals often generate higher cash flow, while long-term rentals may offer slightly lower rates compared to DSCR loans for Airbnb properties.
For full details, see the DSCR Loan Programs section of this page.
Maine DSCR Loan Program Details
Maine DSCR Loan Program Long Term Rental
Up to 80% LTV for Purchases and Rate & Term Refinances
Up to 75% LTV for Cash Out Refinances
Interest Rates from 6.0% to 7.99%
Origination Fee from 0%
DSCR > 1.0
Loan Size: $50,000 to $2,000,000
Closing in as little as 21 days
Credit Score of 660+ Required
No Experience Required
See Our Complete Guide To DSCR Loans
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Maine DSCR Loan Program Short Term Rental
Up to 80% TV for Purchases and Rate & Term Refinances
Up to 75% LTV for Cash Out Refinances
Interest Rates from 6.25% to 7.99%
Origination Fee from 0%
DSCR > 1.0
Closing in as little as 21 days
Loan Size: $125,000 to $2,000,000
Credit Score of 700+ Required
Borrower Required to have 1 Personal Mortgage OR 1 Other Rental Property
See our Airbnb Loans Guide
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Maine DSCR Loan Program 5-10 Unit Multifamily
Up to 75% LTV for Purchases and Rate & Term Refinances
Up to 70% LTV for Cash Out Refinances
Interest Rates from 7.0% to 8.25%
Origination Fee from 1.0%
DSCR > 1.15
Closing in as little as 30 days
Loan Size: $350,000 - $2,500,000
Credit Score of 700+ Required
Borrower Required to have 1 Other 5 Unit Multifamily OR 2 Other 2-4 Unit Multifamily OR 3 other Single Family Rentals
Ready For Your Next Rental Property In Maine?
Apply NowMaine DSCR Loan Process
Our DSCR Loan origination process includes 5 steps with reliable funding in 21-25 days.
Apply Or Get Pre-Approved Online
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Receive Your Term Sheet
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Submit Docs & Order Appraisal
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Underwriting And Final Approval
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Closing
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Maine DSCR Loan Requirements
This section provides a complete checklist of the Borrower Requirements, Property Requirements, and Documents needed for a DSCR Loan in Maine with Ridge Street.
Borrower Requirements
- Credit Score: 680+
- No Mortgage Lates in the last 24 Months
- Liquidity Requirements: Closing Costs + 6 Months PITIA
- First Time Investors Allowed
- Personal Borrower Or LLC
- US Citizen Or Permanent Resident
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Property Requirements
- Property Type: 1-4 Unit Residential or 5-10 Unit Residential
- DSCR > 1.0
- Property Must Be Rent Ready
- Vacant Properties Permitted For Both Purchases and Refinances
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Document Checklist
- Photo ID
- Bank Statement
- Entity Documents (Articles Of Formation, EIN, Operating Agreement) if closing in an LLC
- Appraisal (ordered by Ridge Street)
- Completed Loan Application
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Client Review
Check To See What Terms You Qualify for?
See Your TermsBest Rental Markets in Maine for DSCR Loans
Maine ranks as one of the most investor-active states in the country, with investor-owned properties making up a higher share of the housing stock than in any other state. The state's rental market divides between two distinct strategies: long-term rentals in urban centers like Portland and Bangor, where healthcare, education, and professional employment drive steady demand, and short-term coastal rentals along Maine's Atlantic shoreline and lake regions, where summer tourism from the Boston and New York metro areas generates some of the highest seasonal STR revenue on the East Coast. The Portland metro has maintained among the tightest vacancy rates in the Northeast, and for DSCR investors, Maine's combination of growing urban rental demand and high-yield coastal STR income offers two separate investment theses on the same program.
Portland
Portland is Maine's largest city and one of the most supply-constrained rental markets in the Northeast. Vacancy has held at historically low levels, driven by consistent demand from the healthcare sector anchored by Maine Medical Center, a growing professional services economy, and an in-migration trend of remote workers from Boston and New York who value Portland's lower cost of living and quality of life. Rents have grown steadily, new construction has been limited by zoning constraints, and the market favors landlords across most property types. For DSCR investors, Portland's tight vacancy and upward rent trend produce reliable qualifying ratios, particularly on multifamily and well-located single-family properties within commuting distance of the medical and professional employment corridors.
Maine Coastal and Lake Region STR Market
Maine's coastal and lakeside destinations draw visitors from Boston and New York year-round, with summer and holiday periods generating nightly rates that far exceed what the same properties would produce as long-term rentals. Bar Harbor, Ogunquit, Kennebunkport, and the Lakes Region are established short-term rental markets with a track record of strong occupancy driven by the sheer density of potential visitors within a day's drive of the Maine coast. Inland towns near outdoor recreation areas attract a second wave of visitors outside peak summer, extending the revenue season for well-positioned properties. Ridge Street underwrites Maine coastal and lake STR properties using AirDNA projected revenue, which is the correct qualifying method in markets where seasonal income is the primary return driver and long-term market rent would significantly understate the property's actual cash flow.
Frequently Asked Questions
Why should we use Ridge Street for our Maine DSCR Loan?
- Investor-Focused Expertise – We specialize in DSCR loans for real estate investors in Maine, not traditional homebuyers. That means our programs are designed with rental properties and Airbnb's in mind.
- Local Market Knowledge – We understand Maine market dynamics and structure loans that work for both long-term and short-term rental strategies.
- Speed & Certainty – In competitive Maine markets, timing matters. Our streamlined process and fast closings help you win deals before the competition.
- Direct Relationship Lending – Unlike big banks, we provide personalized service and tailored loan terms so you’re not just another file in the system.
- Flexible Program - The program covers both the long-term rental market in Portland and Bangor and the coastal and lake STR market, where Ridge Street underwrites on AirDNA projected revenue. The minimum loan amount is $55,000. Term sheets are issued within two business hours of a completed application.
Can I close a DSCR Loan in an LLC?
Yes, as long as the LLC is registered in the State of Maine, we can fund the deal in the name of your LLC.
Check out our Complete Guide To DSCR Loans.
How do I setup an LLC in Maine?
There are several steps involved with setting up an LLC in Maine. Typically, the process can take 3-5 days. We recommend Northwest Registered Agent for setting up an LLC in ME.
For DSCR Cash Outs and Refinances, does the property have to be rented?
The short answer is no. We understand that investors who fix and refinance properties intend to refinance as soon as possible after renovating a property.
Can I use a DSCR Loan if I have to renovate the property?
No. DSCR loans require the property to be in rent-ready condition at appraisal, defined as a C4 condition rating with no deferred maintenance that would prevent a tenant from occupying the unit. Properties that need work are financed with a fix and flip loan first. Once renovation is complete and the property reaches C4, it can be refinanced directly into a DSCR loan without switching lenders.
Do you also offer Fix and Flip Loans in Maine?
Yes, you can learn more about our Maine Fix and Flip Loans here.
What Closing Costs are involved with DSCR Loan in Maine?
Here is a breakdown of the estimated closing costs on a $300,000 DSCR loan in Maine:
- Appraisal Fee → $500 – $700
- Title Search & Title Insurance → $1,000 – $1,500
- Recording Fees & Transfer Taxes → $400 – $800
- Title Agent Fees → $750 – $1,200
- Prepaid Reserves (2 Months of PITI) → $2,000 – $3,000
- Insurance → $1,500-$2,000
What are the Pros and Cons of DSCR Loans?
Pros Of DSCR Loans
- No Personal Income Verification
- No tax returns or W-2s required; approval is based on the property's DSCR.
- Can be used for single-family rentals, multifamily units, condos, and short-term rentals like Airbnb.
- Investors can qualify for multiple properties without debt-to-income (DTI) limitations.
- Cash out refinancing available with DSCR loans making them an ideal choice for investors using the BRRRR Investing Strategy.
Cons Of DSCR Loans
- Higher Interest Rates – Typically 0.5% higher than conventional mortgages.
- Requires 20-25% down, while conventional loans may allow as low as 15% for investment properties.
- Prepayment Penalties – Many DSCR loans include penalties if paid off early, especially within the first 3-5 years.
For more information check out our Complete Guide to DSCR Loan Pros and Cons.
Can I get a DSCR Loan under $100,000 in Maine?
Yes. Ridge Street's minimum loan amount is $55,000, with a minimum property value of $75,000. Maine's secondary markets including Bangor, Lewiston, and the inland lake regions include investment-grade rental properties that fall below the $100,000 minimum most national programs require. The $55,000 floor means those acquisitions qualify at the same program terms as any other Ridge Street DSCR loan.
Where can I Learn More about Real Estate Investing in ME?
One of the best ways to learn is by joining local investor groups and networking events.
In Portland, the Maine Real Estate Investors Association (MREIA) hosts monthly meetups with education and deal-making opportunities. In Bangor, investors can connect through the Bangor Real Estate Investors Group.
For a statewide and national resource, check out BiggerPockets, where you can connect with Maine investors, access tools, and read educational articles.
Apply For A DSCR Loan In Maine
Whether you have a property under contract, you're looking to be pre-approved so you can find your next deal, or you'd like to speak with an expert, Ridge Street is your DSCR Lender.
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