Glossary of OOB and Maine real estate terms
Plain-language definitions of every term you will see in OOB real estate, mortgage, and town documents.
Updated May 2026
33 terms
A
Asset Depletion
A loan qualification method where the borrower qualifies based on liquid assets (retirement accounts, brokerage, savings) divided over the loan term, not income. Common for retirees with strong portfolios but minimal W-2 income. Travis specializes in asset depletion for OOB to Florida buyers.
Related: Asset depletion mortgage
Assessed Value
The dollar value a town assigns to a property for tax purposes. In Maine, assessed value is multiplied by the certified ratio and the mil rate to calculate the annual tax bill. The OOB town assessor handles all OOB assessments.
Related: Property taxes
B
Base Flood Elevation
The elevation, in feet above sea level, that floodwaters are expected to reach during a 100-year flood event. Used by FEMA to determine flood insurance premiums in Zone AE and VE. OOB's base flood elevations were lowered in some areas after the 2024 FIRM appeal.
Related: Flood zones
Bridge Loan
Short-term loan secured by an existing home that pays off when the current home sells, allowing the borrower to close on a new home before the old one sells. Critical for OOB to Florida snowbird buyers.
Related: Bridge loans
C
Certified Ratio
The ratio between a Maine town's assessed property values and the state's calculated market values. Affects the size of the Homestead Exemption. If the certified ratio is 80 percent, you receive 80 percent of the $25K Homestead Exemption.
Related: Property taxes
Condominium Act (Maine)
The Maine state law governing condo association formation, disclosure, resale certificates, and the 7-day right of rescission for new construction. Reserve study requirements are part of this act.
Related: Condo associations
Conventional Loan
A mortgage that conforms to Fannie Mae and Freddie Mac guidelines. Requires the property to be warrantable in the case of a condo. Lower rates than non-agency products.
Related: Mortgage
D
DSCR (Debt Service Coverage Ratio)
The ratio of a property's monthly rental income to its monthly debt obligation. Used for investor loans where the property qualifies based on its income, not the borrower's. 1.0+ qualifies; 1.25+ gets the best rates.
Related: DSCR loans
E
Earnest Money Deposit
A deposit made by the buyer at the time of contract to show good faith. In OOB, typically 1-3 percent of the purchase price. Held in escrow and applied to closing costs at settlement.
Related: Buying a second home
F
FEMA Flood Insurance Rate Map (FIRM)
The official FEMA map that determines flood zone designations and base flood elevations. OOB's new FIRMs took effect July 17, 2024 after a multi-year appeal that reduced the regulated zone extent.
Related: Flood zones
FHA Loan
A mortgage insured by the Federal Housing Administration. Requires the property to be on the FHA-approved condo list. Lower down payment than conventional but with mortgage insurance.
Related: Mortgage
Flood Zone
A FEMA designation. Zone X is low risk with no federal flood insurance mandate. Zone A is high risk with mandate, no base flood elevation determined. Zone AE is high risk with mandate and determined base flood elevation. Zone VE is high risk coastal velocity zone (wave action).
Related: Flood zones
H
HOA (Homeowners Association)
The organization that manages a condominium or planned community. Collects monthly fees, enforces rules, maintains common areas, and holds master insurance. Critical due diligence item for OOB condo buyers.
Related: Condo associations
Homestead Exemption
A Maine state property tax exemption that reduces the assessed value of a primary residence by up to $25,000. Saves $275-$430 per year in OOB depending on certified ratio. One-time application by April 1.
Related: Property taxes
J
Jumbo Loan
A mortgage above the conforming loan limit ($766,550 for 2025 in Maine; verify 2026). Common for OOB oceanfront and waterfront properties. Asset depletion option available through Travis.
Related: Jumbo loans
L
Letter of Map Amendment (LOMA)
A FEMA process to remove a property from a Special Flood Hazard Area when the natural ground elevation is above the base flood elevation. Requires an elevation certificate from a licensed surveyor. Removes the federal flood insurance mandate.
Related: Flood zones
M
Master Insurance Policy
The condo association's insurance policy. Typically covers the building exterior and common areas. The owner covers interior contents and improvements. Verify wind and flood coverage in the master before contract.
Related: Condo associations
Mil Rate
The Maine property tax rate expressed in dollars per thousand of assessed value. OOB's effective rate is 1.22 percent (12.2 mils per thousand). Multiplied by assessed value times certified ratio to calculate the bill.
Related: Property taxes
N
NMLS (Nationwide Multistate Licensing System)
The federal registry of mortgage loan originators and mortgage companies. Travis Penny NMLS ID 1649161. Verify all mortgage professionals on nmlsconsumeraccess.org.
Related: Mortgage
Non-Warrantable Condo
A condominium that does not meet Fannie Mae or Freddie Mac warrantability standards. Requires non-agency financing through brokers like Travis. Common reasons include high investor concentration, HOA delinquency, or commercial space ratio over 35 percent.
Related: Condo loans
NFIP (National Flood Insurance Program)
The federal flood insurance program managed by FEMA. Standard policy limits are $250K building plus $100K contents for residential. Private flood insurance markets exist for higher coverage.
Related: Flood zones
O
Occupancy Type
The mortgage classification of how the borrower will use the property. Owner-occupant gets the best rate. Second home gets the next best rate. Investment property gets the highest rate. Misrepresenting occupancy is mortgage fraud.
Related: Snowbird mortgage
P
Pre-approval
A formal mortgage commitment from a lender based on documented income, assets, and credit. Stronger than pre-qualification. Travis issues pre-approvals after full underwriting review.
Related: Mortgage
Pre-qualification
An informal mortgage estimate based on stated income and credit. Less reliable than pre-approval. Most OOB sellers expect pre-approval, not pre-qualification.
Related: Mortgage
Property Tax Fairness Credit
A refundable Maine state income tax credit for homeowners and renters whose property taxes exceed a percentage of income. Up to $2,000 for taxpayers under 65; $2,500 for 65+. Filed through the Maine income tax return.
Related: Property taxes
Property Tax Stabilization
A proposed Maine program (LD 1144 in current legislative session) that would freeze property tax bills for owners 65+ who have owned for 10+ years. Status pending; monitor for 2026 enactment.
Related: Senior resources
R
Reserve Study
An engineering study that projects a condo association's long-term capital needs and recommends reserve fund balances. Required under the Maine Condominium Act. Underfunded reserves predict future special assessments.
Related: Condo associations
S
Special Assessment
A one-time fee charged by a condo association to cover capital projects (roof replacement, siding, HVAC) when the reserve fund is insufficient. Can range from a few hundred dollars to tens of thousands. Always check the meeting minutes for pending special assessments.
Related: Condo associations
Short-Term Rental
A rental of fewer than 30 consecutive days in OOB. Requires an annual rental license ($250/year), bi-annual registration, and safety inspection. Re-inspection every 4 years.
Related: STR ordinance
T
Title Insurance
An insurance policy protecting against title defects, liens, and ownership disputes. The lender requires a lender's policy at closing. Owner's policy is optional but recommended. One-time premium paid at closing.
Related: Buying a second home
V
Veterans Exemption
A Maine property tax exemption for qualifying veterans. Approximately $6,000 reduction in assessed value. Stacks with the Homestead Exemption. Apply through the OOB town assessor.
Related: Property taxes, Senior resources
W
Warrantable Condo
A condominium that meets Fannie Mae and Freddie Mac standards for conventional financing. Requirements include owner-occupancy ratio, HOA financial health, master insurance levels, and absence of pending litigation.
Related: Condo associations, Condo loans
Z
Zone X / A / AE / VE
FEMA flood zone designations. Zone X is low risk no mandate. Zone A is high risk mandate, no BFE. Zone AE is high risk mandate, BFE determined. Zone VE is coastal velocity zone (wave action). All four exist in OOB.
Related: Flood zones
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