DSCR loans for OOB rental properties
Debt Service Coverage Ratio loans qualify the property, not the borrower's tax returns. The right answer for buyers building a short-term rental portfolio in OOB without wanting their CPA on the closing call.
How it works
Underwriter pulls a market rent estimate (1007 form or AirDNA-style data for STRs) and divides it by your full PITIA payment. Most lenders want 1.0 minimum, 1.25 for best pricing. No personal income, no DTI, no tax returns.
Pricing
Rates typically price above a conventional 30 year fixed. 20 to 25% down standard, 700+ FICO, 6 months reserves. Non-warrantable condos OK with most DSCR lenders, a major advantage in OOB.
OOB-specific
Town STR Ordinance requires registration, $250 fee, and a 30-night minimum cap on rentals under 30 days per calendar year (varies by zone). Underwriters increasingly want to see the STR registration in file. AirDNA OOB market metrics: ~$285 ADR, 62% occupancy summer 2025.
LLC ownership
Most DSCR lenders allow closing in an LLC (single-member or multi-member), which most agency loans do not. Useful for liability separation across multiple properties.
- Min DSCR
- 1.0 (1.25 for best price)
- Down payment
- 20 to 25%
- Min FICO
- 700
- LLC closings
- Allowed
- STR ordinance
- Registration required
Compiled from Town of Old Orchard Beach, RSU 23, FEMA, Maine Revenue Service, US Census, and MLS. Deemed reliable but not guaranteed; verify before any transaction.
Financing questions on a Maine to Florida move: Maine to Florida Mortgage Broker
This site does not originate loans and is not an offer or commitment to lend. Figures are estimates for education only. Equal Housing Opportunity.