Bangor is the service center for a huge stretch of northern and eastern Maine. Hospitals, the airport, Husson University and the University of Maine just up the river in Orono keep apartments full, and much of that housing is in nineteenth-century wood-frame buildings with two, three or four units.
In short: LendingStreet makes DSCR loans on 1-8 unit rentals in Bangor and the surrounding towns that qualify on the property's rent instead of your W-2s or tax returns. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV and cash-out up to 75% LTV, with a 1.0x standard minimum DSCR and a 620 minimum credit score. LLC borrowers are standard and 30-year terms are available.
Rental demand in greater Bangor comes from a few steady sources. Northern Light Eastern Maine Medical Center and St. Joseph Hospital employ thousands of people. Bangor International Airport, the downtown offices, retail along Hogan Road and the casino add more. Husson University students rent in Bangor, and University of Maine students and staff spill over from Orono into Old Town, Veazie and Bangor itself.
The housing stock is old. Downtown and the neighborhoods around it, including the West Side, the East Side and Fairmount, hold large Victorian houses, many split into apartments decades ago, along with classic New England two- and three-family homes. Brewer, across the Penobscot River, offers similar stock at somewhat different prices, and Hampden, Hermon and Glenburn add newer single-family homes.
| Area | Common rental type | What to watch |
|---|---|---|
| Downtown and West Side | Victorian conversions, 2-4 unit buildings | Heat system, egress, lead paint |
| East Side and Fairmount | Single-family and two-family homes | Roof and foundation age |
| Brewer | Two-family homes, small multi-unit | River-adjacent flood zones |
| Orono, Old Town, Veazie | Student and staff rentals | Occupancy limits, lease cycles |
| Hampden, Hermon, Glenburn | Newer single-family | Private wells and septic |
We divide monthly rent by the full monthly payment: principal, interest, property taxes, insurance and any HOA or condo dues. At 1.0x the rent covers the payment. On a two-, three- or four-unit building we add all the rents together, using leases where they exist or the appraiser's market rent estimate for vacant units.
Because the property qualifies the loan, you do not need to document personal income. That helps self-employed investors and landlords who already own several buildings and show little taxable income after depreciation.
On a purchase, the appraiser's rent schedule and any existing leases both matter. If a seller's tenants pay well below market, the ratio may be calculated on the lower in-place rent, depending on the program, so read the leases and know when each one ends before you make an offer.
This example is illustrative and not a quote. An investor buys a three-unit Victorian on Bangor's West Side for $330,000. The units lease for $1,150, $1,100 and $1,000, for combined rent of $3,250, and each tenant pays their own heat. Taxes are budgeted at $560 a month and insurance at $210.
At 80% LTV the loan is $264,000. Estimated principal and interest on a 30-year term is about $1,801, the full payment about $2,571 and the DSCR about 1.26x. At 75% LTV the loan is $247,500, the payment about $2,458 and the ratio about 1.32x.
| Item | 80% LTV | 75% LTV |
|---|---|---|
| Loan amount | $264,000 | $247,500 |
| Estimated principal and interest | $1,801 | $1,688 |
| Taxes and insurance | $770 | $770 |
| Total monthly payment | $2,571 | $2,458 |
| DSCR at $3,250 rent | 1.26x | 1.32x |
In a Maine rental, heat is the expense that most often separates a good deal from a bad one. Many older Bangor buildings have a single oil-fired boiler serving every unit, which means the landlord pays for heat all winter. Others have separate systems or have added heat pumps, so tenants pay their own.
Heat is not part of the DSCR calculation, which only uses principal, interest, taxes, insurance and dues. But it comes out of your cash flow every month from October to April. Ask for at least a year of fuel bills before you buy, and price any conversion to separate systems or heat pumps; Efficiency Maine has offered rebates for heat pumps.
Maine property taxes are set town by town. Bangor, as a regional service center, has historically carried a higher tax rate than several of its neighbors, while some surrounding towns are lower. Maine's homestead exemption applies only to a permanent resident's home, so an investor does not get it. If you buy from an owner-occupant, check what the bill will be without the exemption.
Use the current tax bill from the city or town office and ask whether a revaluation is coming, since a revaluation can reset assessments across the board.
Insurers and appraisers pay close attention to the systems in Bangor's older stock:
Maine's real estate transfer tax is $2.20 per $500 of value, split equally between buyer and seller. On a purchase you pay your half; on a refinance there is no transfer. Budget for title insurance, recording fees, an appraisal and insurance escrow. A Maine attorney or title company can give you exact figures for your closing.
Ask your title company to quote the buyer's half of the transfer tax along with the other costs, so the cash you bring to closing matches what you planned.
Some single-family homes in Bangor, Brewer and Old Town sell for less than a $150,000 loan would require. Investors in that range often buy multi-unit buildings, which push the price up while adding rent, or combine five or more rentals into a blanket portfolio loan. For rentals outside greater Bangor, see our Maine rural investment property page.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price or value, the rents and who pays heat through the form below, or call (877) 298-1001. We will run the ratio and show you options at a few loan amounts. For the rest of the state, see our Maine DSCR page.
Yes. We add the rents of all units and compare the total with the full monthly payment.
No. The ratio uses principal, interest, taxes, insurance and dues. Heat affects your cash flow, so review fuel bills before buying.
No. The loan qualifies on rent. We check credit, with a 620 minimum, and assets for the down payment and reserves.
$150,000. Multi-unit buildings and blanket loans help when individual homes are priced lower.
Yes, if it is a 1-8 unit residential property and local occupancy rules allow your setup. Rent is usually taken from leases or the appraiser's market rent.
Insurers look at roof condition, heating systems and freeze risk. Older systems or past ice dam claims can raise premiums.
Yes. LLC borrowers are standard, and you sign for the loan personally.
Yes, including Brewer, Hampden, Hermon, Orono, Old Town, Veazie and Glenburn, as long as the property is a 1-8 unit rental.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.