Portland has become one of the most expensive housing markets in northern New England. A West End brick building, a pair of six-unit houses on Munjoy Hill, a waterfront home in Cape Elizabeth or a group of rentals from a long-time landlord can each push a purchase past $1M, and sellers often want a quick, certain close.
In short: LendingStreet's residential bridge loans run from $150,000 to $5M+, with rates from 7.99% and larger balances reviewed case by case. They are short-term, interest-only loans on 1 to 8 unit investment properties that can close in as little as 10 days, with exits by sale or refinance into a DSCR, blanket or jumbo DSCR loan. Larger balances usually need a full valuation.
Unlike lower-cost Maine markets, Portland and its close-in suburbs have single properties worth more than $1M: multi-unit brick and wood-frame buildings in the West End and on Munjoy Hill, waterfront homes in Cape Elizabeth and Falmouth Foreside, and some island properties in Casco Bay. Packages of two-, three- and four-family houses also reach seven figures quickly.
Common uses for a large bridge loan here include the following.
This example is illustrative and not a quote. An investor buys two six-unit buildings in Portland's West End for $3,200,000. Several units are vacant or under-rented and need updates. A bridge loan at 70% of the price is $2,240,000, with estimated interest-only payments of about $19,600 a month.
After renovation, the 12 units lease at an average of $2,100, or $25,200 a month, consistent with the city's rent rules for re-leased units, and the buildings appraise at $3,600,000 combined. A DSCR refinance at 65% LTV is $2,340,000, enough to repay the bridge loan.
Estimated principal and interest on a 30-year loan is about $16,282. Taxes of $3,900 and insurance of $1,600 bring the total payment near $21,782, for DSCR around 1.16x. Lower leverage is what makes the exit work at Portland prices.
| Item | Bridge loan | DSCR refinance |
|---|---|---|
| Basis | Price $3,200,000 | Value $3,600,000 |
| Loan amount | $2,240,000 (70%) | $2,340,000 (65%) |
| Monthly payment | About $19,600 interest-only | About $21,782 with taxes and insurance |
| Monthly rent | Partly vacant | $25,200 |
| DSCR | Not used | About 1.16x |
Portland's rent stabilization ordinance limits annual increases on many existing tenancies, and there are rules on notice and registration. If you buy a building with below-market tenants planning to raise rents for the refinance, check carefully which units are covered and what the rules allow. A refinance is sized on actual leases.
Units that turn over or are renovated may be re-leased under the ordinance's terms. Get advice on the current rules before closing, and build your refinance numbers on rents the rules actually allow.
Larger balances usually need a full valuation. Multi-unit sales on the peninsula are relatively few in any given year, so appraisers may reach into Westbrook, South Portland or older sales. Waterfront and island homes have even fewer comps.
Provide recent rent rolls, renovation plans and any comparable sales you know of. Clear documentation makes the review faster. For packages, a schedule showing each building's units, rents, condition and planned work helps the reviewer see which properties carry the value and which need the most attention.
Peninsula buildings are often 100 to 150 years old, with wood framing, older wiring, boilers, shared chimneys and lead paint. Renovation budgets should include code upgrades, fire separation and egress requirements that apply when units are updated, plus weatherization in a cold climate.
Winter weather can slow exterior work, so plan the bridge term around a realistic schedule. Contractor availability in greater Portland is also tight during the building season, and permits for multi-unit renovations on the peninsula can take time. Line up your contractor and permit plan before closing so the clock on interest-only payments is not running while you wait.
Maine's real estate transfer tax is split between buyer and seller. Portland's property taxes follow a recent revaluation, and coastal towns like Cape Elizabeth and Falmouth have their own rates. Insurance on older multifamily and waterfront homes is often significant.
Carrying costs during the bridge term include interest, taxes, insurance and heating vacant units through the winter, since a cold, empty building risks frozen pipes.
The usual exit is a refinance into a DSCR or blanket loan once units are leased, or a jumbo DSCR loan on a high-value building. Some investors sell a building from a package to reduce the refinance. For luxury single-family homes, a sale is often more realistic than a rent-based refinance, since long-term rents rarely support the value.
Plan the refinance at moderate leverage, as the example shows. Test it with current insurance quotes and a realistic tax figure, since both can rise after renovation and revaluation.
Many Portland landlords financed buildings with local banks on balloon terms. When those loans come due, a bridge loan can pay them off and give the owner time to stabilize, renovate or sell. Bring the payoff statement, maturity date, rent roll and plan.
A clear exit is required. The bridge loan is short-term and interest-only, so the refinance or sale plan needs to be realistic. If the existing loan matured because rents or occupancy slipped, show how you will fix that during the bridge term, whether through renovations, new leases or selling a weaker building.
Send the address or property schedule, purchase contract, renovation budget, rent roll and exit plan. The financing team will size the bridge loan and test the refinance.
Our investor loans are business-purpose loans on non-owner-occupied property. Call (877) 298-1001 or use the form below to get a quote.
Residential bridge loans run from $150,000 to $5M+, with larger balances reviewed case by case.
Bridge rates start from 7.99%. Pricing on larger balances depends on the properties, leverage and your experience.
Larger balances usually need a full valuation of each property.
It can. The refinance is sized on actual rents, and Portland's rules limit increases on many existing tenancies.
Portland values are high relative to rents, so lower leverage is often needed for the rent to cover the payment.
Yes, as an investment property. The exit is often a sale or a lower-leverage jumbo DSCR loan.
Yes. Residential bridge loans cover 1 to 8 unit investment properties.
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