Good Portland multi-families do not sit on the market long, and many of them come with a vacant unit, deferred work or a seller who wants to close quickly. A bridge loan buys you time to fix the property and lease it before you put permanent financing in place.
In short: LendingStreet offers residential bridge loans on 1-8 unit investment properties in greater Portland, Maine from $150,000 to $5M+, with rates from 7.99%. Loans are short-term and interest-only, can close in as little as 10 days, and some programs require no appraisal. Most investors exit by refinancing into a DSCR loan or selling.
Peninsula two- to four-unit buildings often change hands with units vacant or leased well below market, which makes a long-term loan hard to size on day one. A bridge loan sizes on the purchase and the plan, then the DSCR refinance sizes on the stabilized rent.
Bridge loans also help investors who need to close before selling another property, buy at an estate sale on a tight deadline, or take over a building that needs code work before it can be fully leased.
In a market where a good building can draw several offers in the first week, closing speed is part of your offer. A seller weighing a cash-like close in two weeks against a buyer waiting on a long-term loan will often take the faster close, even at a similar price.
The core bridge terms are the same across the metro.
Pricing within the program depends on leverage, your experience, the property condition and how clear the exit looks. A building with signed leases waiting on a refinance prices differently from one with every unit vacant.
This example is illustrative and not a quote. An investor buys a three-unit building for $825,000 with two units vacant after a long-time owner moved out. A 75% bridge loan of $618,750 carries estimated interest-only payments of about $5,414 a month while the investor paints, updates kitchens and leases the units.
Six months later all three units rent for about $2,350 each, or $7,050 a month, and the building appraises at $880,000. A 75% DSCR refinance of $660,000 pays off the bridge loan. Estimated principal and interest is about $4,502, taxes $1,050 and insurance $310, for a total of $5,862 and a DSCR of about 1.20x.
| Stage | Loan | Monthly payment | Notes |
|---|---|---|---|
| Bridge (months 1-6) | $618,750 | $5,414 interest-only | Units vacant during work |
| DSCR refinance | $660,000 | $5,862 with taxes and insurance | Three units leased |
| DSCR at refinance | - | - | 1.20x on $7,050 rent |
The refinance has to work on real numbers. Before you buy, confirm market rents, the tax bill after any revaluation and the insurance quote, then check whether the building is covered by Portland rent stabilization, because that can limit rent increases on existing tenants. Our bridge-to-DSCR guide walks through the timing and seasoning questions.
Plan for a cushion. If leasing takes longer than expected, or the appraisal comes in below your target, you want enough term left on the bridge loan to adjust. Many investors choose a term a few months longer than their plan to avoid a rushed refinance.
Older Portland buildings often need egress windows, fire separation, hardwired smoke detectors or electrical upgrades before vacant units can be re-rented. Build those items into your scope and timeline. If you are adding a unit, zoning and building permits will set the pace, so a longer bridge term may be smarter than a short one.
Talk with the city early if your plan involves restoring a unit that has been vacant for years. Older buildings sometimes have unit counts that do not match city records, and sorting that out takes time. A bridge loan gives you room to resolve it before you need permanent financing.
Portland leasing is busiest in late spring and summer, and much of the city's student and medical workforce turns over around then. Buying in winter and leasing by early summer lines up well. Exterior work slows from December to March, so plan siding, roofs and porches for the warmer months.
If the plan is a heavy rehab with draws and a sale, a fix and flip loan is usually the better fit. If the property is mostly livable and you need speed or time to lease, a bridge loan is simpler. Both are short-term and interest-only.
If you plan to sell rather than refinance, list in spring when Portland buyer activity tends to pick up, and keep your bridge term long enough to cover a slow summer if the first offer falls through.
Interest-only payments are only part of the cost of holding a Portland building while it is vacant or under work. Owner-paid heat in an old boiler building can be large in winter, and taxes and insurance continue whether units are rented or not. Budget each month of the term with all of those costs, not just the loan payment.
Keep reserves for the unexpected. A failed boiler in January or a roof leak found during work can add weeks and dollars. Lenders look favorably on borrowers who show they can carry the property through a delay.
Tell us the purchase deadline up front so we can line up title, insurance and closing on your schedule.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price, current rents and your plan through the form below or call (877) 298-1001. For statewide information see our Maine bridge loan page.
In as little as 10 days with a complete file and clear title.
Bridge rates start from 7.99%. Your pricing depends on leverage, experience and the property.
Some bridge programs do not require an appraisal. Others do, depending on loan size and leverage.
Yes. That is one of the most common uses. The refinance is then sized on the leased rent.
1-8 unit residential investment properties. Buildings with nine or more units fall under our commercial programs.
Most investors refinance into a 30-year DSCR loan after leasing, or sell the property.
It can limit how fast rents rise on covered units, so base your refinance plan on rents you can actually charge.
Yes. A bridge loan can close quickly on the new purchase, and you can pay it down or refinance after the other sale closes.
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