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Debt Service Coverage Ratio Loans
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Best DSCR Loans in Maine
Key Terms
Maine’s DSCR loans emphasize property income over personal finances, catering to self-employed and multi-property investors.
The streamlined documentation process and flexibility across property types make Maine DSCR loans attractive to diverse investors.
While offering advantages like higher loan amounts and interest-only options, DSCR loans come with higher interest rates and potential market risks.
You’re our first priority. We want you to understand how we make money. This post may contain affiliate links. Biglaw Investor may receive a commission at no additional cost to you if you click on the links in this article. This may influence which products we write about and where and how the products appear on a page. However, it does not influence our evaluations. Our opinions are our own. In some circumstances, if you work with us, we are able to provide an incentive to work with our advertising partners that is unavailable if you work with our advertising partners directly. Our partners cannot pay us to guarantee favorable reviews of their products or services. To read more about how we make money, click here.
Easy Street Capital’s EasyRent loan program provides DSCR loans for cash-flowing investment properties. Flexible underwriting and ultra-competitive terms.
Loan Products
DSCR Loans: With rates starting at just 5.99% interest rates, 20% minimum down payment, no DSCR minimum, vacant properties OK.
Short Term Rental Loans: Leading loans for short term rentals (Airbnb); qualify with AirDNA projections and no operating history required. Rural, Vacation, and Seasonal Markets OK.
BRRRR Loans: Cash-out refinance DSCR Loans up to 75% with low seasoning requirements, 100% of capital invested returned in as little as 3 months
Multifamily Loans: 5-10 Unit properties financed on 30-year fixed rate loans with interest-only and easy qualification options.
Mixed Use Loans: DSCR Loans for Mixed Use properties up to 8 units (including up to 3 commercial units)
Lender Facts
Minimum Loan
$100,000
What We Do
DSCR Loans Rates starting at 5.99%
30-Year Fixed Rate; 10-Year Interest-Only Available
You’re our first priority. We want you to understand how we make money. This post may contain affiliate links. Biglaw Investor may receive a commission at no additional cost to you if you click on the links in this article. This may influence which products we write about and where and how the products appear on a page. However, it does not influence our evaluations. Our opinions are our own. In some circumstances, if you work with us, we are able to provide an incentive to work with our advertising partners that is unavailable if you work with our advertising partners directly. Our partners cannot pay us to guarantee favorable reviews of their products or services. To read more about how we make money, click here.
Expand your rental portfolio with New Silver’s lightning-fast DSCR loans, closing in days, not weeks. Get approved online in under 5 minutes, including an instant online term sheet.
Ready to grow your portfolio with confidence? Apply now and see how fast and easy real estate investing can be with New Silver Lending at your side.
Loan Products
DSCR Loans: A 30-year fixed loan tailored for rental properties—ideal for growing your rental portfolio. Up to 80% LTV. No minimum DSCR required.
Fix & Flip Loans: Hard money loans designed for purchasing, renovating, and reselling investment properties—perfect for executing quick fix-and-flip projects.
Ground Up Loans: Up to 100% construction financing for residential builders—ideal for developers ready to break ground.
You’re our first priority. We want you to understand how we make money. This post may contain affiliate links. Biglaw Investor may receive a commission at no additional cost to you if you click on the links in this article. This may influence which products we write about and where and how the products appear on a page. However, it does not influence our evaluations. Our opinions are our own. In some circumstances, if you work with us, we are able to provide an incentive to work with our advertising partners that is unavailable if you work with our advertising partners directly. Our partners cannot pay us to guarantee favorable reviews of their products or services. To read more about how we make money, click here.
Ridge Street’s DSCR loans allow real estate investors to purchase and refinance rental properties in 35 states, with industry-leading pricing and fast closing times for both long- and short-term rentals.
Loan Products
DSCR Loans For Long Term Rentals: Rates from 6.0% on cash flowing rental properties. Up to 80% LTV with a DSCR of 1.0 required.
DSCR Loans For Short Term Rentals: Rates from 6.75% on Airbnb and VRBO properties. Monthly rent used in DSCR calculation is based on AirDNA projected cashflow instead of 12 month track record.
DSCR Loans For Cash Out and Refinance: Ideal for BRRRR investors, we offer refinancing and cash-out options up to 80% LTV.
DSCR Loans For Multifamily Properties: 30-year loans for multifamily properties up to 25 units, with up to 80% LTV and a maximum loan amount of $2M.
Lender Facts
Minimum Loan
$50,000
What We Do
DSCR Loan Rates starting at 6.0%
Minimum DSCR of 1.0 required
Up to 80% LTV on purchases and refinances
Up to 75% LTV on cash-outs
Short-term rentals allowed
660+ credit score required
0% origination fee available
Not Available
No 100% financing
No properties > 25 units
No owner-occupied properties
No credit score below 660
From the bustling streets of Portland to the serene coastlines of Maine, the state’s dynamic real estate market offers prime investment opportunities. DSCR loans, which prioritize property income over personal finances, make investing in this region particularly attractive.
The homeownership rate in Maine is [fred_homeownership state=”ME”], according to the Federal Reserve. This high rate indicates a stable and mature market, reflecting Mainers’ strong preference for investing in real estate and establishing a solid foundation for investments.
The vacancy rate in Maine, reported by the US Census Bureau, is [fred_vacancy_rate state=”ME”]. This figure is crucial for DSCR loan investors as it indicates the availability of properties and the potential for rapid turnover into income-generating assets.
Maine’s median listing price is $429,725, as per the St. Louis Fed. The state offers a range of investment opportunities, appealing to those looking for economical options as well as to investors aiming for more premium offerings.
In the subsequent sections, this guide will explore how DSCR loans can be strategically used in Maine. We will discuss the best practices for selecting loan providers and navigating the diverse Maine real estate market to ensure optimal investment decisions.
What are the main advantages of a Maine DSCR loan?
In the picturesque state of Maine, Debt Service Coverage Ratio (DSCR) loans offer tailored financial solutions for real estate investors looking to capitalize on the unique opportunities presented by the local market. From the bustling streets of Portland to the serene landscapes of coastal and rural areas, Maine’s real estate market offers diverse investment potential. Here are some of the main advantages of DSCR loans in Maine.
Key advantages:
1. Investor-friendly loan structure: Maine DSCR loans are structured to prioritize the income generated by the investment properties rather than the personal income of the investors. This feature is particularly advantageous for self-employed individuals or those who own multiple properties but may not have traditional income streams that meet standard lending criteria.
2. Simplified documentation process: Unlike conventional home loans, Maine DSCR loans typically do not require extensive documentation such as tax returns or bank statements. This streamlined process reduces the administrative burden on borrowers, making it faster and easier to secure funding.
3. Adaptability to various property types: Maine’s DSCR loans are available for a wide array of property types. Whether investors are interested in single-family homes, multifamily residences, townhomes, or even short-term rental properties, these loans provide the flexibility needed to invest across different real estate segments.
4. No personal debt-to-income ratio consideration: By focusing on the property’s cash flow to service the debt, lenders do not consider the personal debt-to-income ratio of the borrower. This aspect is particularly beneficial for investors who may have high personal debt obligations but still operate profitable rental properties.
5. Opportunity for portfolio growth: For real estate investors aiming to expand their holdings, Maine DSCR loans can facilitate growth by allowing the acquisition of additional properties based on the success of existing ones, rather than being limited by personal financial limits.
The pros and cons of pursuing a DSCR loan in Maine
The decision to utilize a DSCR loan in Maine involves weighing the inherent benefits against potential drawbacks, as these loans offer unique opportunities but also come with specific challenges. Understanding these aspects is crucial for investors considering this type of financing for their real estate ventures in Maine.
Pros:
Emphasis on property revenue: The main advantage of this type of loan lies in its focus on the revenue generated by the property itself. This is ideal for properties in high-demand areas that command substantial rental incomes, potentially leading to better loan terms based on strong cash flow.
Flexibility for foreign nationals and LLCs: Maine DSCR loans are accessible to a broader range of borrowers, including foreign nationals and LLCs, providing an inclusive financing option that supports diverse investment strategies.
Interest-only payment options: Some lenders offer interest-only payment terms for initial periods, which can significantly reduce the financial burden during the early stages of property ownership, enhancing cash flow management.
Higher loan amounts: DSCR loans often provide higher minimum loan amounts by evaluating the property’s rental income, which allows for enhanced loan options. This is particularly beneficial in securing substantial financing for high-value properties, giving borrowers access to loan products that are aligned with their investment goals.
Streamlined application process: The application process for DSCR loans is often more straightforward, with less emphasis on the borrower’s credit score and more focus on the property’s income. This streamlined underwriting process speeds up approval times and reduces the complexity of securing financing.
Cons:
Higher interest rates: To offset the risk of not extensively verifying personal income, lenders typically charge higher interest rates on DSCR loans compared to traditional mortgage loans. This can increase the overall cost of borrowing.
Substantial down payment requirements: Investors might need to provide a more considerable down payment for a Maine DSCR loan, which can be a barrier for those with limited upfront capital.
Economic and market risks: The success of a DSCR loan is closely tied to the local real estate market’s performance. Any downturns or lower-than-expected rental incomes can jeopardize the borrower’s ability to meet the loan’s obligations, leading to financial strain.
In conclusion, while Maine DSCR loans provide significant advantages by focusing on property income and offering streamlined application processes, they also require careful consideration of the associated risks and costs. Investors must evaluate their ability to manage higher interest rates, larger down payments, and the dependencies on property performance before opting for this financing route.
Plenty of real estate investors want loans that give them maximum options for cash flow, such as cash out refinance. Traditional loans may not offer enough flexibility. Further, some investors cannot qualify for these conventional loans. To get competitive rates and more flexibility based on your real estate portfolio, you’ll need to look into DSCR mortgages. Check out the eligibility requirements with these DSCR loans, hard money loans, or interest-only loans. If you have a lot of short term rentals and long term rentals in your portfolio. You may need to provide tax returns, proof of income, meet a minimum credit score, or possibly even a minimum down payment.
Examples of investors who take out a DSCR loan in Maine
Maine, known for its stunning coastlines and charming small towns, presents unique opportunities for real estate investment. DSCR loans are particularly effective here, allowing investors to focus on property income. Here are two examples of investors using DSCR loans in Maine:
Example of a real estate investor: Imagine Jack, a real estate investor in Portland looking to purchase a multi-family residential property in the city’s historic district. By utilizing a DSCR loan, Jack can qualify for the loan based on the projected rental income from the property rather than his personal financial history. This strategy allows him to secure the necessary financing to add a valuable asset to his portfolio, capitalizing on Portland’s strong rental market and tourist demand.
Example of a seasonal rental owner: Consider Linda, a seasonal rental owner in Bar Harbor planning to buy a vacation property near Acadia National Park. By using a DSCR loan, Linda can qualify based on the anticipated rental income during the peak tourist season. This approach allows her to secure the financing needed to invest in the vacation rental market, capitalizing on Bar Harbor’s booming tourism industry.
Joshua Holt is a licensed mortgage loan originator (NMLS #2306824) and founder of Biglaw Investor. His mortgage expertise lies in the areas of professional mortgage loans, particularly for lawyers, doctors and other high-income professionals. Prior to Biglaw Investor, Josh practiced private equity mergers & acquisition law for one of the largest law firms in the country.
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