Portland, Lewiston, Biddeford and Bangor have a deep stock of older multifamily that investors buy and renovate with short-term money. A DSCR rate-and-term refinance replaces it with long-term debt qualified on the rent.
In short: Yes, LendingStreet finances DSCR rate-and-term refinances on 1-8 unit investment properties in Maine, up to 80% LTV on some programs, qualified on the property's rent with no W-2s or tax returns. The new loan pays off your existing hard money, bridge or higher-rate loan plus closing costs, with only a small amount of cash back allowed on most programs. Our investor loans are business-purpose loans on non-owner-occupied property, starting at $150,000 with a 620 minimum credit score. In Maine, heating systems and older building condition, plus Portland's short-term rental rules, are the items to check early.
In a rate-and-term refinance, the new DSCR loan retires your existing debt and nothing more, apart from closing costs and, on most programs, a small amount of cash back. You are changing the price and shape of the debt, not the amount of equity you hold.
Leverage can reach up to 80% LTV on some programs, compared with up to 75% on a cash-out. The loan qualifies on the property's rent, not your W-2s or tax returns. The ratio of rent to the full new payment, including taxes, insurance and HOA dues, needs to be at least 1.0x on standard programs.
Maine's cities have many 19th and early 20th century two- to four-family buildings, including triple-deckers in Lewiston and Biddeford, and older single-family homes in smaller towns. Investors buy, renovate and refinance. Rate-and-term also helps investors holding a local bank loan with a short balloon or rate reset.
Rate-and-term is also the cleaner choice when the property's rent only modestly exceeds the payment. Adding cash-out raises the balance and lowers the ratio, while a rate-and-term keeps the debt where it is and focuses on better terms.
Short-term loans are interest-only and come due quickly, which works during a rehab but not for a long-term hold. A rate-and-term DSCR refinance replaces that debt once the property is stabilized and leased.
Timing matters. Lenders consider how long you have owned the property when deciding whether to use the new appraised value or your cost basis, and that rule varies by program. Order the appraisal early and keep invoices and receipts for the work you did.
Maine charges a real estate transfer tax on deeds, split between buyer and seller, which applies to sales rather than a standard refinance. There is no mortgage tax, so refinance costs are mostly recording, title, appraisal, attorney and lender charges.
If you move title into an LLC as part of the refinance, transfer tax treatment and declarations can apply, so check with the closing attorney first.
Older Maine buildings often use oil or propane heat, and boiler age, oil tank condition and who pays heat all matter. If tenants pay heat, the leases should say so. Insurers may ask about heating systems and tank age.
Property taxes vary by town and can be meaningful in Portland and South Portland. Lead paint is common in pre-1978 housing, and Maine has its own lead rules for rental units. Use the actual tax bill in the DSCR math.
This example is illustrative and not a quote. An investor owns a two-family house in Portland appraised at $520,000. The existing hard money loan used for the purchase and renovation has a payoff of $380,000, costs about $3,220 a month interest-only and matures in 3 months. Rent is $3,900 a month, and taxes, insurance and any HOA dues run $720 a month.
Rolling about $9,500 of closing costs into the loan gives a new balance of $389,500, or about 74.9% LTV, inside the 80% ceiling some programs allow. On a 30-year term, principal and interest is about $2,624, so the full payment is about $3,344 and the DSCR is about 1.17x. The short-term maturity is gone and the payment is fixed. The rent could fall by about $556 a month before the ratio hit 1.0x.
| Item | Amount |
|---|---|
| Appraised value | $520,000 |
| Existing loan payoff | $380,000 |
| Closing costs rolled in | $9,500 |
| New loan amount | $389,500 |
| Loan-to-value | 74.9% |
| Principal and interest (30 years) | About $2,624 |
| Taxes, insurance and HOA | $720 |
| Total monthly payment | About $3,344 |
| Monthly rent | $3,900 |
| DSCR | About 1.17x |
The two refinances use the same DSCR underwriting, but the limits differ. Here is how they line up on a typical 1-8 unit rental.
If you are unsure which fits, ask for a quote on each. The difference in loan amount, payment and DSCR on the same Maine property usually makes the choice clear, and the form below can request either.
| Feature | Rate-and-term | Cash-out |
|---|---|---|
| Purpose | Pay off existing loan and costs | Pay off loan and take equity |
| Maximum LTV | Up to 80% on some programs | Up to 75% |
| Cash at closing | Small allowance, varies by program | Up to the LTV limit |
| Minimum DSCR (standard) | 1.0x | 1.0x |
| Minimum credit score | 620 | 620 |
| Income documents | Rent only, no W-2s or tax returns | Rent only, no W-2s or tax returns |
Portland and South Portland have the highest rents and values, with tighter ratios. Lewiston and Auburn offer lower prices and many triple-deckers. Biddeford and Saco draw investors along the southern coast, and Bangor and Augusta have steady demand. Portland limits short-term rentals of non-owner-occupied units, and coastal towns have their own rules.
Most delays come from missing paperwork. Pull these together before you request a quote. Call (877) 298-1001 or use the form below to get a quote.
Yes. LendingStreet offers rate-and-term DSCR refinances on 1-8 unit investment properties in Maine, from $150,000 with no stated maximum, qualified on the property's rent.
Maine's transfer tax applies to deeds, so a standard refinance usually avoids it. Moving title into an LLC can change that.
Only a small amount on most programs, and the allowance varies by program. If you want to pull equity out, a cash-out refinance up to 75% LTV is the better fit.
Yes. Three-family buildings are standard residential DSCR collateral, and rent from all units counts.
Often, yes, but seasoning rules vary by program. Some use the new appraised value; others cap the loan near your cost basis if you bought recently.
Portland limits STRs of non-owner-occupied units, so most investment properties there qualify on long-term leases.
Standard programs require a minimum of 1.0x, meaning rent covers the full payment. Sub-1.0 programs exist for properties that fall short, with tighter terms.
No. The loan qualifies on the property's rent, not your personal income. You still need a 620 or higher credit score, reserves and entity documents if the property is in an LLC.
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