Maine investors deal with a smaller map than most. Nearly all of the state's financeable investment property sits within about an hour of Portland, because of a location rule most lenders apply and few explain. This page shows where that line falls, what Maine's landlord law requires of a buy-and-hold investor, and what a flip costs in transfer tax, then lays out our lending partners' terms.
Our lending partners' underwriting guidelines look for property within about 45 to 60 minutes of a metro area of 200,000 people or more. That keeps appraisals grounded in real sales and gives a finished house enough buyers. In most states the rule trims a few rural counties. In Maine it decides most of the map.
Greater Portland is the one metro in the state that clears the bar on its own. Portland, South Portland, Westbrook, Scarborough and the towns around Casco Bay are the core of Maine's financeable market.
Southern Maine sits inside that hour: Biddeford and Saco, Sanford, and the York County towns toward the New Hampshire line.
Lewiston and Auburn are roughly 40 minutes from Portland, and Brunswick and Bath closer still. Augusta is near the outer edge of the hour.
Bangor is the hard case. It is Maine's third-largest city, but its own metro area is well under 200,000 people and Portland is roughly two hours away, so Bangor properties generally fall outside the guideline. The same goes for Down East, the western mountains and Aroostook County. If your deal is north of Augusta, check the exact address before you spend money on inspections.
Two more rules apply anywhere: the finished value must be at least $100,000, which most of southern Maine clears easily, and the lot must be two acres or less, which rules out many rural parcels even near Portland.
Maine's landlord-tenant law is statewide and fairly specific. The points that shape a rental's numbers:
Security deposits are capped at two months' rent, must be held separately from the landlord's own funds, and must be returned within 30 days after a written lease ends, or 21 days after a tenancy at will, with an itemized statement. A landlord who misses the deadline forfeits the right to keep any of it.
Rent increases need at least 45 days' written notice, and 75 days if the increase is 10 percent or more, counting several smaller increases within a year together.
Late rent has a 15-day grace period, and a late fee is capped at 4 percent of the monthly rent.
Termination notices are short for cause: seven days for serious lease violations or unpaid rent, and 30 days to end a tenancy at will.
Local rules can add more. Maine has no statewide rent control, but Portland has its own rent stabilization ordinance covering many units. If you are buying a rental inside Portland, read the city's current rules before you set your rent projections, because they can cap how fast the rent can rise.
Transfer tax. Maine charges $2.20 per $500 of value, split equally between buyer and seller. On a $300,000 house each side pays about $660. A flip pays its half twice, buying and selling, so budget roughly $1,300 on a deal that size.
Property tax. Maine property tax is set town by town, and rates vary a great deal between neighboring towns. Maine's homestead exemption is for residents' own primary homes, so a rental never gets it. Ask the town assessor for the current rate and the date of the last revaluation before you estimate holding costs.
Winter. A Maine renovation plan has to account for heating a vacant house, frozen pipes and a shorter exterior work season. Our lending partners' guidelines describe a nine-month standard term. A flip bought in November with exterior work planned should count on spring for that part of the job.
Foreclosure goes through the courts. Maine forecloses judicially, a slower process than in states that use trustee sales, which is part of why lenders pay close attention to the exit plan.
No Maine county is on the list where our lending partners cap leverage at 50 percent, so standard terms apply wherever the location test is met.
Fix and flip and bridge loans: from $50,000, up to 100 percent of cost but no more than 70 percent of after-repair value, with a 600 minimum credit score. Standard pricing under the underwriting guidelines is 12.99 percent and 2.99 points. The 10.99 percent starting rate is available after two loans have been paid off in good standing with our lending partner; a first-time borrower should expect to start above it and earn the way down.
DSCR rental loans: $75,000 to $2 million at up to 80 percent of value, qualified on the rent, with rates from 5.99 percent on the program page.
Construction loans: $100,000 to $3 million on non-owner-occupied single-family homes, from 8.5 percent.
Loans close in an entity such as an LLC, and every owner of 30 percent or more personally guarantees the loan. Terms change, so we confirm them for your property before you commit.
Yes, Maine is one of the states our lending partners finance in, but their location rule matters more here than almost anywhere. The property should be within about 45 to 60 minutes of a metro area of 200,000 people or more, which in Maine generally means the Portland area and southern Maine.
Check the exact address first. Bangor's own metro area is well under 200,000 people, and Portland is roughly two hours away, so Bangor properties generally fall outside our lending partners' location guideline. Southern and central Maine within about an hour of Portland are the likelier fit.
Maine's real estate transfer tax is $2.20 for every $500 of value, split equally between the buyer and the seller. On a $300,000 sale each side pays about $660, so a flip pays its half twice: once buying and once selling.
No more than two months' rent. The deposit must be kept separate from the landlord's own money, and it has to be returned within 30 days after a written lease ends, or 21 days after a tenancy at will ends, with an itemized list of any deductions.
At least 45 days' written notice, and 75 days if the increase is 10 percent or more, including several smaller increases that add up to 10 percent within a year. Some cities, Portland among them, also have their own local rent rules.
Yes. Rent is not considered late until 15 days after it is due, and a late fee cannot be more than 4 percent of the monthly rent and must be disclosed in writing when the tenancy begins.
Keeping a Maine rental for the long haul? Our two free landlord books compare what a rental costs to carry across the states.
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Dominion Hard Money does not lend its own funds; it arranges financing through third-party lending partners. All financing is arranged for business purposes only and secured by non-owner-occupied investment property. Not a commitment to lend. All loans subject to underwriting, property review, and approval by the lender. Terms vary by property, borrower experience, and exit strategy.
Massachusetts · Location rules for flip loans · DSCR rental loans · Your first flip · All states