Portsmouth prices are some of the highest in northern New England, so many Seacoast investors buy in Dover, Rochester and Somersworth and keep Portsmouth for the long hold. A DSCR loan lets you qualify on the rent from either kind of property, without tax returns.
In short: LendingStreet makes DSCR loans on 1-8 unit rentals in Portsmouth and the surrounding Seacoast, qualifying on the property's rent instead of your income. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV, the standard minimum DSCR is 1.0x and the minimum credit score is 620. LLC borrowers are standard, and 30-year terms are available.
Portsmouth itself is a small city with a deep stock of older housing: Federal and Colonial homes in the South End, wood-frame two- and three-family houses along the Islington Street corridor and in the West End, and 1950s capes and ranches in neighborhoods like Elwyn Park and Pannaway Manor. Tenants include workers at the Pease Tradeport, the Portsmouth Naval Shipyard across the river in Kittery, Maine, and the hospital and downtown employers.
Ten to twenty minutes inland, Dover, Somersworth and Rochester in Strafford County offer more multi-family housing per dollar, including mill-era two- and three-family homes near their downtowns. Exeter, Stratham and Newmarket sit in between on price, and Durham rentals are driven by the University of New Hampshire.
| Area | Typical rental stock | What to watch in the DSCR math |
|---|---|---|
| Portsmouth (South End, West End, North End) | Historic singles, two-families, condos | High price per unit; ratio is often tight at full leverage |
| Dover and Somersworth | Two- and three-families, newer townhomes | Higher tax rate per $1,000 than Portsmouth |
| Rochester | Mill-era multis, ranches | Lower prices; older heating systems and lead paint |
| Exeter, Newmarket, Durham | Singles, small multis, student rentals near UNH | Student turnover; town zoning on unit counts |
DSCR is the property's monthly rent divided by its full monthly payment: principal and interest, property taxes, insurance and any HOA dues. A ratio of 1.0x means the rent covers the payment. We do not ask for W-2s or tax returns, which is why the loan suits self-employed investors and people who already own several rentals.
Purchases go up to 80% LTV, cash-out refinances up to 75% and rate-and-term refinances up to 80% on some programs. On two- to four-family homes we use the combined rent of all units. If the ratio lands a bit under 1.0x, sub-1.0 DSCR programs exist for some files.
Rent can come from signed leases or, for a vacant unit, the appraiser's market rent estimate on some programs. Reserves are also part of the review, so keep a few months of payments in the bank after closing.
This example is illustrative and not a quote. An investor buys a Dover two-family for $575,000. The units lease for $2,100 and $1,950, so qualifying rent is $4,050 a month. Taxes are budgeted at $925 a month using Dover's rate on the purchase price, and insurance at $175.
At 70% LTV the loan is $402,500. Estimated principal and interest on a 30-year term is about $2,814, so the full payment is about $3,914 and DSCR is about 1.03x. The same rent on a Portsmouth two-family priced near $800,000 would struggle to reach 1.0x at similar leverage, which is the main reason so many Seacoast buyers start inland.
| Item | Amount |
|---|---|
| Purchase price | $575,000 |
| Loan at 70% LTV | $402,500 |
| Estimated principal and interest | $2,814 |
| Taxes | $925 |
| Insurance | $175 |
| Total monthly payment | $3,914 |
| Monthly rent | $4,050 |
| DSCR | 1.03x |
New Hampshire has no general sales tax and no broad income tax on wages, and it leans on property taxes instead. Rates are set per $1,000 of assessed value each fall, and towns must reappraise at least every five years, so a bill can jump after a revaluation. Portsmouth's rate has generally been lower than its neighbors' because of its commercial base, but high values still produce large bills.
The state real estate transfer tax is charged to both buyer and seller, $0.75 per $100 of price on each side under current law. Budget the buyer half in your cash to close and confirm the current figure with your title company.
If you plan to own several Seacoast rentals, keep the tax card, insurance quote and leases for each property in one folder. The same documents support every future refinance.
Much of the Seacoast rental stock predates 1978, so lead paint disclosure and safe work practices apply. Many older multis heat with oil or gas boilers, and who pays for heat changes both the rent you can charge and your operating costs. Lenders count only the full payment in DSCR, but your own budget should not ignore heat.
Portsmouth has taken the position that short-term rentals are not a permitted use in its residential zoning districts, and a 2019 New Hampshire Supreme Court decision sided with the city. Do not underwrite a Portsmouth home on nightly income without confirming current zoning. Beach and lake towns elsewhere in the state set their own rules, and our New Hampshire STR page covers those markets.
New Hampshire generally requires landlords to have a legal reason to end most residential tenancies, with limited exceptions, under RSA 540. That makes tenant screening more important and means existing leases usually transfer with the building. Read the leases and estoppels before you close, and ask a local attorney about any problem tenancy.
Security deposits and move-in charges are also regulated in New Hampshire, so use a local lease form and keep deposit records clean. A building with a clean rent history and documented deposits is easier to value and refinance later.
Send the address, price, rent roll and the tax bill or assessor card. We will run the ratio at a few loan amounts, including the real tax figure on your price, and come back with options. Our investor loans are business-purpose loans on non-owner-occupied property, closed in your LLC or personal name. Call (877) 298-1001 or use the form below.
Yes, if the condo can be rented under the association's rules. We review HOA dues in the payment and any leasing restrictions in the documents.
Often, yes. Lower prices per unit mean a smaller loan against similar rents, even with higher tax rates, so the ratio is usually stronger.
No. The loan qualifies on the property's rent. We look at credit, reserves and the property, not your personal income.
$150,000. There is no stated maximum, and larger balances are reviewed case by case.
No. It is a closing cost, not part of the monthly payment, but it affects how much cash you need to close.
No. We only finance non-owner-occupied investment property.
Yes. LLC borrowers are standard, and you sign for the loan personally.
Timing depends on the appraisal, title and insurance. A complete file with leases and the tax card moves fastest.
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.