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 6.25%
- 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 rental property financing option that allows real estate investors to qualify based on property income instead of personal income. With DSCR loans, Ridge Street measures whether the rent covers the property’s principal, interest, taxes, and insurance payment (PITI). DSCR loans are one of the most popular loan programs for Maine real estate investors because they are highly scalable and work well with populuar investing strategies like the BRRRR Method and Short Term Rentals.
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% 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
Perfect for first-time investors or experienced investors scaling their rental portfolio.
Up to 80% LTV 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
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
.png)
Maine DSCR Loan Program Short Term Rental
Designed for saavy investors pursuing higher rents with a short term rental strategy.
Up to 80% TV for Purchases and Rate & Term Refinances
Up to 75% LTV for Cash Out Refinances
Interest Rates from 6.5% 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
.avif)
Maine DSCR Loan Program 5-10 Unit Multifamily
For experienced investors only, looking to pursue larger multifamily rental property deals.
Up to 75% LTV for Purchases and Rate & Term Refinances
Up to 70% LTV for Cash Out Refinances
Interest Rates from 7.0% to 7.99%
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
.png)
Receive Your Term Sheet
.png)
.png)
.png)
Submit Docs & Order Appraisal
.png)
Underwriting And Final Approval
.png)
Closing
.png)
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
.png)
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
.png)
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
.png)
Client Review
Check To See What Terms You Qualify for?
See Your TermsFrequently 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.
- Competitive Rates & Terms - Ridge Street aims to be in top 10% of the DSCR loan market for low rates and fees.
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?
To obtain a DSCR Loan in Maine, the property must be in rentable condition. Formally, this means the property must obtain an appraised condition rating of at least C4 with no deffered maintenance.
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, our mininium loan amount is $50,000 for DSCR Loans. Note that the minimum collateral value of a property that we can finance is $75,000.
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.
Review Of The Best Rental Markets In Maine For DSCR Loans
Maine has become an increasingly attractive market for real estate investors, driven by its thriving tourism industry and growing demand for short-term rentals in coastal and vacation destinations. From popular hotspots like Portland and Bar Harbor to seasonal getaways along the southern coast and inland lakes, investors can capitalize on steady tourist traffic and limited lodging supply. While long-term rentals remain viable in metro areas and university towns, Maine’s strongest opportunities for DSCR loans are often found in the short-term rental sector, where high seasonal rents can help offset higher property costs. For investors using DSCR financing, Maine offers a unique chance to build cash flow through STR-focused properties in markets that continue to see strong visitor demand year after year.
Portland
Portland’s rental market offers strong opportunities for both long-term and short-term rentals. Neighborhoods such as the Old Port and East End are popular with tourists and seasonal renters, creating potential for short-term rental income, while areas like Deering Center and Rosemont appeal to families and young professionals seeking stable long-term rentals. Multi-family properties in the 2–4 unit range are especially attractive in Portland, offering steady cash flow while remaining manageable for investors. For DSCR loan borrowers, Portland provides a mix of LTR and STR opportunities, allowing for flexible strategies depending on neighborhood and tenant demand.
Vacation rental Towns
Maine’s coastal and lakeside regions—such as Bar Harbor, Ogunquit, Kennebunkport, and the Lakes Region—are strong short-term rental markets driven by tourism. These areas see high seasonal demand, especially during summer and holiday periods, making them ideal for investors seeking short-term rental income. Inland towns with proximity to outdoor recreation also attract vacationers year-round. For DSCR loan investors, these markets can offer attractive cash flow potential when properties are strategically located near beaches, trails, or popular attractions.
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.
.png)
.png)
