Best DSCR Lenders in Maine (Rental Property Loans) [2025 Guide]

Maine’s rental market blends coastal towns teeming with tourists and bustling college cities anchored by the University of Maine. Between 2020 and 2024, the state’s median home price rose more than 50 %, far outpacing wage growth of less than 33 %, which has made traditional financing tougher for investors. In 2025, the statewide fair market rent averages $1,667 for all bedroom types, ranking Maine as the 16th highest‑rent state in the U.S. with studio rents around $1,236 and three‑bedroom rents averaging $2,370. Investors seeking to expand portfolios here often look to debt‑service‑coverage‑ratio (DSCR) loans because these products qualify borrowers based on property cash flow instead of personal tax returns. This guide introduces DSCR lending, explains how we evaluated lenders, ranks eight of the best options with Select Home Loans at the top, and provides a detailed handbook on DSCR financing for Maine investors.

How we evaluated lenders

We compared DSCR lenders on transparency, program flexibility and market reach. Key factors included each lender’s published minimum DSCR requirement, maximum loan‑to‑value (LTV), minimum credit score, typical loan amounts and term lengths, and whether they permit short‑term rentals (STRs). We also considered the speed of underwriting, responsiveness to first‑time investors, and evidence of lending in Maine. For accurate local coverage, we favoured sources with clearly published state lists and program pages. As DSCR loans remain a niche product, we confirmed data points with up‑to‑date lender materials and industry articles.

Top DSCR lenders in Maine (Select Home Loans #1)

Select Home Loans

Website: SelectHomeLoans.com
Phone: 888-550-3296

Why #1. Select Home Loans (SHL) earns the top spot for Maine investors due to its flexible DSCR guidelines and dedicated service for first‑time borrowers. SHL offers DSCR loans with competitive LTVs and often allows ratios below 1 if strong reserves or additional collateral are provided. Their underwriting is streamlined—typically closing within three to four weeks—and they pride themselves on thorough local market knowledge. SHL supports single‑family rentals, small multifamily properties (2–4 units), and condotel projects, and they consider applications from LLCs and trusts. Although SHL does not publish exact figures for minimum DSCR or credit score (since these change with market conditions), they emphasize case‑by‑case evaluation and will discuss scenarios with investors directly.

Ridge Street Capital (RSC)

A Maine‑focused private lender profiled by the Biglaw Investor ranks second. RSC offers 30‑year DSCR loans with up to 80 % LTV, interest rates starting around 6 %, and no minimum DSCR requirement. They accept FICO scores as low as 660 and can fund loans as small as $50,000. RSC allows short‑term rental properties and does not charge a prepayment penalty. This combination of low entry threshold and flexible underwriting makes RSC attractive to local investors who want to purchase or refinance modest‑sized rentals in towns like Bangor or Lewiston.

Malve Capital

Malve Capital, another lender highlighted in the same Biglaw Investor article, provides DSCR loans across Maine with minimum DSCRs down to 0.75 and interest‑only or amortized structures. Loan amounts range from $100 k to $3 million, and borrowers need FICO scores of at least 660. Malve Capital does not impose prepayment penalties, a significant advantage for investors planning to refinance or sell within a few years. They primarily work with rental properties and short‑term rentals in coastal tourist markets like Portland and Bar Harbor.

LBC Mortgage

LBC Mortgage advertises DSCR loans for Maine investors with clearly stated eligibility. Borrowers must show a minimum DSCR of 0.75, provide a 20 % down payment, possess a credit score of 620 or higher, and seek loans above $200,000. LBC does not require tax returns or W‑2 income, focusing instead on the property’s income potential. A professional appraisal that includes a market rent analysis is required. The company positions itself as a one‑stop shop for both novice and seasoned investors and will work with LLCs and corporations.

Visio Lending

Visio Lending is one of the country’s largest DSCR lenders and lists Maine among its lending states on its coverage map. While the company does not specify minimum DSCR requirements in marketing materials, it typically requires FICO scores around 680 and lends up to 80 % LTV for purchases and 75 % for cash‑out refinances. Visio’s DSCR loans are 30‑year fixed or interest‑only and permit property types from single‑family homes to 2–4‑unit multifamily and warrantable condos. Visio stresses that property rent must cover the principal, interest, taxes, insurance and HOA (PITIA) payments, aligning with industry norms.

Kiavi

Kiavi—formerly LendingHome—offers DSCR rental loans with flexible features. Their program summary notes maximum 80 % LTV and FICO scores above 680 (exact DSCR minimums vary). Kiavi lends to investors in most states, including Maine, and allows portfolio loans for those with multiple properties. Because Kiavi’s platform is digital‑first, investors can upload documents and track the loan process online. The lender provides 30‑year fixed or adjustable‑rate DSCR products and may permit interest‑only periods, appealing to investors seeking payment flexibility early in the term.

CoreVest

CoreVest, a large private lender, lists Maine among the states where it offers 30‑year DSCR loans for single‑family rentals, condominiums and townhomes. CoreVest’s product matrix notes a minimum DSCR of about 1.0, LTVs up to 80 %, and loan sizes from $75 k to $2 million+. Borrowers need credit scores of 650–680 or higher. CoreVest offers both single‑asset DSCR loans and portfolio products for investors owning multiple properties. Their closings take roughly 30 to 45 days.

RCN Capital

RCN Capital is another nationwide DSCR lender serving Maine. The company’s long‑term rental product features 30‑year fixed and 5/1 adjustable‑rate mortgages for investment properties. They typically require DSCRs at or above 1.00, offer up to 80 % LTV, and accept credit scores down to 660. RCN distinguishes itself by permitting loans on non‑warrantable condos, mixed‑use properties and vacation rentals, although underwriting guidelines may be stricter for such properties. Borrowers can lock interest rates for free during underwriting.

New Silver

New Silver, a fintech lender well known for fix‑and‑flip loans, also offers DSCR mortgages. Its DSCR program features interest rates starting near 6 %, loan amounts from $150 k to $3 million, and LTVs up to 80 %. New Silver requires a minimum DSCR of 0.75 and a minimum FICO of 660, and applicants need a 20 % down payment. The lender allows long‑term rentals, short‑term rentals and portfolio loans. Because New Silver uses automated property valuation tools, it may expedite underwriting compared with traditional lenders.

Easy Street Capital

Easy Street Capital, known for bridging loans, also originates DSCR loans in Maine. Although it does not publish detailed guidelines for Maine, its DSCR program generally offers LTVs up to 80 %, minimum credit scores around 640, and flexible prepayment options. Easy Street stands out for offering blanket DSCR loans for multiple properties (often up to $5 million) and for permitting vacation rentals. Investors should inquire directly to confirm Maine availability and specific DSCR thresholds.

DSCR formula and example

A DSCR loan is fundamentally about cash flow: lenders want to ensure your rental property generates enough income to cover its mortgage payment. Debt Service Coverage Ratio = Monthly Rental Income ÷ Monthly Fixed Expenses (PITIA). Monthly fixed expenses include principal, interest, property taxes, insurance and homeowners‑association (HOA) dues. A DSCR above 1.0 means the property generates more income than the mortgage payments, while a ratio below 1.0 signals the property does not fully cover debt obligations. Some lenders, like Malve Capital, allow DSCRs as low as 0.75 if borrowers have strong reserves or additional collateral.

Example calculation: Imagine purchasing a duplex in Bangor with monthly rental income of $2,800. Your proposed mortgage, including taxes and insurance, would be $2,200 per month. DSCR = 2,800 ÷ 2,200 = 1.27. In this scenario, the duplex produces 27 % more income than needed to cover the mortgage, which would qualify with most lenders. If the mortgage payment were $3,000, DSCR would drop to 0.93, requiring the investor to increase rent, add personal reserves, or consider a smaller loan.

Local investor considerations

Economic landscape

Maine’s economy depends on industries such as tourism, healthcare, education and seafood. The Maine Housing Authority’s 2025 outlook notes that home prices grew more than 50 % between 2020 and 2024, while wages increased by less than 33 %, highlighting affordability pressures and increasing demand for rental housing. New construction has accelerated since 2023, but building costs remain high and supply is tight. Investors should evaluate neighborhoods carefully: Portland commands premium rents with its vibrant downtown and working waterfront; Bangor offers affordability and a steady rental market anchored by universities and healthcare employers; Lewiston–Auburn is a growing twin city with new housing developments; and coastal towns like Bar Harbor and Old Orchard Beach offer strong seasonal rental income but require careful analysis of occupancy rates.

Short‑term rentals (STR)

Maine’s coastal tourism means many investors consider STRs. However, local ordinances vary. Portland caps the number of non‑owner‑occupied STRs and requires annual registrations, while communities like Bar Harbor enforce limits on unhosted short‑term rentals. Many DSCR lenders underwrite based on long‑term market rents even if the property will be rented short‑term. Investors should verify if the lender will accept projected STR income or if underwriting will rely solely on the 12‑month market rent determined in the appraisal (1007 rent schedule).

Property types and condition

DSCR lenders in Maine typically finance single‑family homes, townhomes, condos (warrantable and non‑warrantable), duplexes and other small multifamily properties. Condotel and mixed‑use properties may be accepted by select lenders like RCN Capital or SHL but often require higher down payments or interest rates. Rural properties or off‑grid cabins may face challenges in appraisal due to limited comparable sales. Investors should also consider property condition: lenders will order an appraisal that includes a market rent analysis, and major deferred maintenance can jeopardize both valuation and loan approval.

Qualification checklist

To secure a DSCR loan in Maine, expect to provide:

• Credit score: Most lenders require FICO scores of 620–680+; stronger credit can secure better rates.
  
• Down payment: 20 % is typical, though some lenders offer lower or higher depending on the property and borrower.
  
• DSCR documentation: A property appraisal with market rent analysis (form 1007) or leases showing current rent.
  
• Reserve funds: Lenders often require 3–12 months of PITIA in reserves, especially for DSCRs below 1.0.
  
• Entity structure: Many lenders prefer or require the property to be held in an LLC.
  
• Insurance: Hazard insurance and, for coastal properties, flood and wind coverage.
  
• Title work: Clean title and no outstanding liens.
  

Rates and terms snapshot (subject to change)

DSCR loan pricing depends on the loan‑to‑value, DSCR ratio, credit score, property type and whether the loan is fixed or adjustable. Lenders charge interest rates that typically start in the 6 % range (e.g., New Silver starts at 5.875 %) and can reach the high 8 % range for lower‑DSCR or cash‑out scenarios. Points (origination fees) usually range from 0–2 %, and closing times can vary from two weeks (e.g., RSC or Longleaf Lending) to 30–45 days for more complex loans. Note that conditions change quickly in 2025 due to interest‑rate volatility; always obtain a written term sheet from the lender.

Frequently asked questions (FAQs)

1) What DSCR ratio do lenders require in Maine? Most DSCR lenders require a ratio around 1.00–1.25 to ensure property cash flow covers the mortgage. Some lenders, like RSC and Malve Capital, may approve ratios as low as 0.75 if the borrower has strong reserves or a larger down payment. Lower ratios typically come with higher rates or lower LTVs.

2) Do DSCR lenders allow short‑term rentals? Many lenders will finance properties that are used as Airbnbs or seasonal rentals, but they usually underwrite using long‑term market rent (as shown in the appraisal) rather than projected nightly income. Always confirm the lender’s STR policy and local regulations.

3) Can I finance a property held in an LLC? Yes. Most DSCR lenders allow or require properties to be held in LLCs or other entities. However, you may need to sign a personal guarantee.

4) How much cash reserve do I need? Reserve requirements vary but can range from three months of PITIA to 12 months for lower DSCRs or large portfolios. Proof of liquidity (bank statements or retirement accounts) is usually required.

5) Are there prepayment penalties? Some lenders charge a penalty if you repay the loan within a certain timeframe, while others—like RSC and Malve Capital—do not. Ask your lender about prepayment terms and whether you can buy down or waive the penalty.

6) What loan sizes are available? Loan amounts typically range from $50,000 (RSC’s minimum) to $3 million (New Silver). Larger portfolio loans are available from lenders like CoreVest and RCN.

7) Can I refinance a property with a DSCR loan? Yes. Many lenders offer cash‑out refinancing based on the property’s current value and DSCR. Expect lower LTVs on cash‑out loans (e.g., 70–75 %).

Conclusion and call to action

DSCR loans enable Maine investors to build portfolios without the paperwork burden of traditional mortgages. By focusing on property cash flow, they open doors for self‑employed borrowers, first‑time investors and seasoned landlords alike. Among the lenders reviewed, Select Home Loans stands out due to its flexible underwriting, willingness to consider lower DSCRs, and commitment to investor education. Whether you’re buying a triplex in Portland or refinancing a cottage in Bar Harbor, start your search with Select Home Loans and compare at least two other lenders to find the best fit. Remember: DSCR loan guidelines evolve quickly, so always verify terms and state eligibility before committing. With due diligence, DSCR financing can be a powerful tool for growing rental income in the Pine Tree State.