Portland is a small city with an old, tight rental stock: wood-frame two- and three-families on the peninsula, capes and bungalows off it, and suburbs that fill in fast. A DSCR loan lets an investor buy or refinance those rentals on the strength of the rent roll instead of personal income.
In short: LendingStreet offers DSCR loans on 1-8 unit rentals across greater Portland, Maine, qualified on the property rent with no W-2s or tax returns. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV, cash-out up to 75% LTV, and the standard minimum DSCR is 1.0x with a 620 minimum credit score. LLC borrowers are standard.
On the peninsula, Munjoy Hill, the East End, the West End and Parkside hold most of the classic 19th and early 20th century multi-family buildings, many of them converted single-families with two to four apartments. Off the peninsula, Deering, Back Cove, Rosemont and East Deering mix capes, bungalows and two-families on smaller lots.
Across the bridge, South Portland has its own two-family stock near Knightville and Ferry Village, and Westbrook has older mill-era housing near downtown. Biddeford and Saco, to the south, are part of the same metro and have mill conversions and older multi-families at lower prices.
| Submarket | Typical rental stock | What to check |
|---|---|---|
| Munjoy Hill, East End | Two- and three-unit wood frame, condos | Rent stabilization coverage, parking, heat type |
| West End, Parkside | Victorian conversions, 3-6 units | Egress, fire code, older electrical |
| Deering, Back Cove, Rosemont | Capes, bungalows, two-families | Oil heat, roof age, basement water |
| South Portland, Westbrook | Two-families, small single-families | Separate city rules and tax bills |
| Biddeford, Saco | Mill-era multi-families | York County records, flood mapping near rivers |
DSCR is monthly rent divided by the full monthly housing payment: principal and interest, property taxes, insurance and any HOA dues. At 1.0x the rent covers the payment exactly. Lenders use signed leases, a market rent estimate from the appraisal, or both.
Because each unit in a Portland two- or three-family usually has its own lease, the combined rent of all units counts. Utilities matter too. Many older buildings have a single oil or gas boiler, so the owner pays heat, and that cost does not show up in the DSCR formula but does show up in your cash flow.
The appraiser will also look at how the building is laid out. A legal two-family with separate entrances and meters reads differently from a single-family with an unpermitted apartment upstairs, and only the legal units can count toward rent. Ask the seller for the certificate of occupancy or city records that show the permitted unit count.
This example is illustrative and not a quote. An investor buys a two-family in Deering for $600,000. The units rent for $2,150 and $2,050, or $4,200 a month combined. Property taxes are budgeted at $725 a month and insurance at $205.
At 75% LTV the loan is $450,000 and estimated principal and interest on a 30-year term is about $3,070. The total payment is about $4,000, for a DSCR of about 1.05x. At 80% LTV the loan rises to $480,000, the payment to about $4,204 and the DSCR falls to about 1.00x, which is why many Portland buyers settle at 75%.
| Item | 75% LTV | 80% LTV |
|---|---|---|
| Loan amount | $450,000 | $480,000 |
| Estimated principal and interest | $3,070 | $3,274 |
| Taxes and insurance | $930 | $930 |
| Total monthly payment | $4,000 | $4,204 |
| DSCR at $4,200 rent | 1.05x | 1.00x |
Portland voters approved a rent stabilization ordinance that limits annual rent increases on many covered units and requires notice before increases, with exemptions for some property types. The city also runs a rental housing registration program with annual fees per unit.
For DSCR purposes, this means you should underwrite on current, documented rents rather than projected increases, and confirm whether the building is covered before you buy. South Portland, Westbrook and the other suburbs have their own rules, so check each city separately.
Maine property taxes are set town by town. Portland and several neighboring towns have gone through revaluations in recent years, and a revaluation can move a bill sharply. Budget on the current assessment and current mill rate from the city assessor, not the seller's old bill.
Maine also charges a real estate transfer tax that is split between buyer and seller. It is a closing cost rather than part of the monthly payment, but it affects how much cash you need. Confirm the current figure with your title company.
Much of Portland's rental housing predates 1940. Insurers ask about roof age, heating system, electrical panels and any remaining knob-and-tube wiring, and pre-1978 buildings carry lead paint disclosure duties for landlords.
Portland registers short-term rentals and limits non-owner-occupied units on the mainland, and the rules have been revised more than once. For most mainland investors, plan on long-term leases. Island properties and some nearby coastal towns have different rules, and our STR program can qualify on projected revenue where nightly rentals are legal. Check the city or town before you rely on nightly income.
Older buildings with owner-paid heat and higher taxes after a revaluation can push a Portland ratio below 1.0x. You can lower the loan amount, document higher market rents with signed leases, or look at our sub-1.0 DSCR programs, which accept a ratio below 1.0x on some files with stronger credit and reserves.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price, rents and the leases you have through the form below, or call (877) 298-1001. We will run the ratio at a few loan amounts and tell you which programs fit. For statewide rules, see our Maine DSCR page.
Yes. The loan qualifies on the property rent compared with the monthly payment. We do not use W-2s or tax returns, though we do review credit, assets and reserves.
It affects how much rent growth you can count on. We underwrite on current leases or market rent, so confirm whether your building is covered and do not assume large increases.
Yes. LLC borrowers are standard on our DSCR programs, and you sign for the loan personally.
The minimum is 620. Higher scores can open higher leverage and more program options.
Yes. We finance 1-8 unit rentals throughout the greater Portland area, including Cumberland and York County towns.
Yes. Two-, three- and four-unit buildings qualify on combined rent. Five- to eight-unit buildings are also residential, with leverage that varies by program.
Heat is not part of the DSCR formula, but if you pay it, it reduces your actual cash flow. Budget it separately when you decide how much to borrow.
Usually not. Only legal, permitted units can be counted, so confirm the unit count with city records before you rely on that rent.
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