Maine's vacation rental season is short and in high demand, from Kennebunkport and Ogunquit beaches to Acadia and the ski mountains. Several towns have responded with caps, so the town decides as much as the property.
In short: LendingStreet makes DSCR loans on Maine short-term rentals, and some programs size the loan on a third-party projection of short-term rental revenue rather than a 12-month lease. Qualification runs on the property, not your personal income: 620 minimum credit, loans from $150,000 with no stated maximum and LLC ownership allowed. Portland and Bar Harbor limit investor rentals, while ski and lake towns are more open, and the state's lodging tax applies to most stays.
The southern coast, including Ogunquit, Wells, Kennebunkport and Old Orchard Beach, draws summer visitors from Boston and beyond. Portland has a restaurant and waterfront scene. Midcoast towns like Camden, Rockland and Boothbay Harbor are popular for sailing and lobster shacks, and Bar Harbor serves Acadia National Park.
Inland, Sunday River in Bethel and Newry and Sugarloaf in Carrabassett Valley are ski markets with strong winter weekends. Rangeley, Moosehead Lake and the Belgrade Lakes draw summer families and snowmobilers. Much of the coastal stock is older shingled cottages and capes, while the ski towns have newer condos and slopeside homes.
| Market | Who books | What to check |
|---|---|---|
| Southern coast | Summer beach families | Town license, flood zone |
| Portland | Food and waterfront visitors | Registration, non-owner caps |
| Bar Harbor | Acadia visitors | Town cap on vacation rentals |
| Sunday River and Sugarloaf | Skiers, summer hikers | Condo rules, snow load |
Portland registers short-term rentals and caps non-owner-occupied units, with tighter limits on the mainland than on the islands. Bar Harbor voters adopted a cap on vacation rentals as a share of housing units. Other coastal towns have added registration, safety inspections or limits.
Ski and lake towns are generally more open but may still require registration, and condo associations can set their own rules. Check the town and any association rules for the address before you buy.
Instead of asking for your tax returns, the lender divides the property's income by its full monthly payment, including taxes, insurance and HOA dues. For a vacation rental with no history, some programs accept a third-party revenue projection built from comparable listings. If the property already rents nightly, its booking history can carry more weight.
Most programs look for a ratio of at least 1.0x, and sub-1.0 options exist. Purchase leverage goes up to 80% LTV and cash-out up to 75% LTV, with lower limits on some short-term rental programs and large loans. Loans start at $150,000, the minimum credit score is 620 and 30-year terms are available. Anything from a single condo to an eight-unit building fits the residential program; larger buildings go through commercial lending.
Maine applies its sales tax on lodging to short-term rentals, and the state requires platforms and operators to report rentals. A few towns charge local fees. Platforms collect the state tax on their bookings, but direct bookings require registration.
Maine property taxes are set town by town through mill rates and can be significant in coastal towns. The homestead exemption only applies to an owner's primary residence. Pull the current bill for the parcel.
Insurance needs to cover short-term rental use. Coastal properties may need flood insurance, and older farmhouses and cottages can need updated wiring, heating or roofs before carriers write a policy. Snow loads and frozen pipes are common winter claims.
Many Maine properties sit on private roads, wells and septic systems, and some island or water-access homes do not have year-round road access. Those details matter for both the appraisal and the insurance quote, so collect them early.
This example is illustrative and not a quote. An investor buys a four-bedroom home near Sunday River in Bethel for $465,000. A projection for comparable homes shows $45,000 a year in gross revenue. At 75% LTV the loan is $348,750, and estimated principal and interest on a 30-year term is about $2,439 a month. Add $520 in taxes, $180 in insurance, and the payment is about $3,139. $3,750 of average monthly revenue divided by that payment gives a DSCR of about 1.19x.
Putting 30% down changes the picture: a $325,500 loan, a payment of about $2,976 and a DSCR of about 1.26x, with $23,250 more due at closing. Ski weekends and summer hiking both help this market. A coastal cottage at the same price with a summer-only season would need stronger peak weeks to reach the same ratio.
| Item | Amount |
|---|---|
| Purchase price | $465,000 |
| Loan amount at 75% LTV | $348,750 |
| Down payment | $116,250 |
| Projected annual revenue | $45,000 |
| Average monthly revenue | $3,750 |
| Estimated principal and interest (30-year) | $2,439 |
| Property taxes | $520 |
| Insurance | $180 |
| HOA dues | None |
| Total monthly payment | $3,139 |
| DSCR | About 1.19x |
The coast earns most of its revenue from late June through Labor Day, with strong fall foliage weekends into October. Ski towns peak from December through March. Lake markets are mostly summer, with a snowmobile season in some areas. Spring mud season is slow almost everywhere.
Most delays come from missing items. Pull these together first:
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price, projected revenue and target leverage. The financing team checks the ratio at a few loan amounts, flags local permit or HOA issues it sees, and comes back with options, including a long-term-rent fallback if the nightly numbers are thin.
We lend in York, Cumberland, Hancock, Oxford, Franklin and the rest of Maine's counties. Call (877) 298-1001 or use the form below to get a quote.
Portland caps non-owner-occupied short-term rentals, with tighter limits on the mainland. Check current availability with the city.
Yes. Bar Harbor voters adopted a cap on vacation rentals as a share of housing units. Confirm current rules with the town.
Maine's sales tax on lodging applies to short-term rentals, and platforms collect it on their bookings.
On some programs, yes, if the town and any association allow nightly rentals.
You can put more down, look at a sub-1.0 DSCR program or qualify on long-term market rent instead. Our guide to low STR projections, linked below, walks through each option.
Yes. LLC borrowers are standard on DSCR loans, and you sign for the loan personally as the owner of the entity.
No. Our investor loans are business-purpose loans on non-owner-occupied property, not second homes or residences.
Yes. The appraiser estimates market rent, and on short-term rental programs the revenue figure may come from a third-party projection or booking history. Both feed into the ratio.
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.