What if you could invest in a state where foreign-born residents have grown by nearly 20% in the last decade? Maine is experiencing a quiet yet steady transformation, attracting more international residents and investors than ever.
For foreign nationals looking to break into the U.S. real estate market, securing financing can feel like a maze—especially with strict mortgage requirements and unfamiliar lending processes. But with the right approach, Maine offers a compelling opportunity, combining affordability, a strong economy, and a booming rental market.
Whether you are interested in short-term vacation rentals fueled by Maine’s $9 billion tourism industry or long-term investment properties in its growing cities, this guide will walk you through everything you need. From mortgage options and eligibility requirements to the best cities for investment, let’s explore how to successfully invest in Maine real estate.
We are providing the following discussion to you for informational purposes only. All investments, including real estate, involve risk, and we encourage you to invest carefully. The information in this article is not intended to replace or serve as a substitute for any legal, real estate, tax, or other professional advice or service. You should consult with a professional in the respective legal, tax, accounting, real estate, or other professional area before making any decisions or entering into any contracts relating to a rental property.
Many real estate investors use debt-service-coverage-ratio (DSCR) loans. DSCR loans are tailored to foreign investors looking to buy income-generating properties.
A DSCR loan enables investors to buy rental properties in Maine without living there. Unlike traditional loans, these do not rely on the borrower’s personal income. Instead, they focus on the cash flow the property generates.
Debt-service-coverage-ratio (DSCR) loans are a flexible option for foreign investors. Here’s why they stand out:
When applying for a real estate investment loan in Maine as a foreign national, it's essential to understand that different lenders have different criteria. Some lenders may be more accommodating to international investors than others, so knowing what to expect can help you make an informed decision.
Here’s a breakdown of the key requirements most lenders1 have for foreign nationals, compared to the more flexible options available through Waltz, a foreign national-friendly lender:
Most lenders: Prefer verifying U.S.-based income due to familiarity with local systems. Extensive documentation will be required if your income originates outside the U.S., including foreign bank statements, pay stubs, or rental income reports. Some lenders may delay or deny applications due to perceived risks.
Waltz: We simplify the process by accepting financial documentation from your home country. This includes bank statements, income reports, and other relevant records. Additionally, we prioritize the property's rental income potential over your income to streamline the process.
Most lenders: DSCR mortgages typically require a down payment between 30% and 50% of the property's price. Additionally, lenders often mandate maintaining reserves equivalent to a certain percentage of the loan amount to cover unforeseen expenses.
Waltz: Down payments can be as low as 25%, depending on individual circumstances. Depending on the individual's situation, reserve requirements may also be flexible, making it easier for foreign investors to access financing.
Most lenders: Lenders require a valid passport and visa. Some may also mandate setting up a U.S.-based LLC for investment purposes, requiring additional documentation like an operating agreement.
Waltz: Only requires a valid passport from your home country. If you do not already have an LLC, we can help you establish one quickly, complete with an Employer Identification Number (EIN).
Most lenders: Require a U.S. credit score (FICO), which can be a significant barrier for foreign nationals. Without a U.S. credit history, securing approval may be difficult.
Waltz: At Waltz, we do not require a U.S. credit score. Instead, we assess your creditworthiness based on your financial history in your home country, ensuring fair access to mortgage options.
Finding the right property type is crucial for profitable real estate investing. Property types can provide different returns, have varying demand levels, and pose unique challenges. The local market also plays a significant role—some areas may have more of one type of property than another, influencing potential income and desirability.
By choosing the right property type for your goals, you can take advantage of the opportunities available in Maine and set yourself up for a successful investment.
Here are the primary property types available in Maine:
Maine offers foreign investors a unique mix of strong tourism, affordable property prices, and economic stability—creating ideal conditions for short-term and long-term real estate gains.
Investing in Maine requires understanding the unique opportunities each city offers. Here are the top cities with compelling investment potential:
As Maine's largest city and cultural hub, Portland boasts a robust rental market. With a median monthly rental income of $2,450, the town is a hotspot for long-term rental opportunities. Additionally, Portland’s appeal to tourists drives significant demand for short-term rentals, providing investors with versatile earning options. Its growing economy and vibrant lifestyle make it a top choice for real estate investors.
Famous for its proximity to Acadia National Park, Bar Harbor draws millions of visitors annually, making it a lucrative spot for vacation rentals. Peak-season rates for short-term rentals often exceed $300 per night, offering investors high-income potential. Its scenic beauty and strong tourism industry make it a highly desirable location for real estate investment.
Bangor, a city with growing appeal, saw its median home price surge by 25.8% year-over-year to $327,000 as of December 2024, with properties selling in an average of 63 days. Despite the price increase, Bangor remains affordable compared to other cities, offering strong rental demand and growth potential.
As Maine’s capital, Augusta offers stable investment opportunities backed by the presence of government offices and educational institutions. The rental market has shown steady growth, with the average rent for an apartment at $1,250 as of January 2025. Additionally, Augusta’s median home price stands at $282,000, reflecting a 34.5% year-over-year increase. These factors contribute to attractive rental yields, making it a strong choice for investors seeking steady returns.
Kennebunkport is a charming coastal town renowned for its picturesque waterfront, boutique shops, and upscale restaurants. The town's population swells from approximately 3,500 year-round residents to over 10,000 during peak summer months, highlighting its appeal as a seasonal destination.
The real estate market in Kennebunkport reflects its premium status. As of December 2024, the median listing home price was $1.6 million, representing an 8.7% decrease year-over-year.
Despite this dip, the average home value stood at $1,062,742, marking a 4.4% increase over the past year.
The town's popularity among affluent visitors and retirees contributes to a robust market for high-end vacation rentals. During peak tourist seasons, rental properties command premium rates, offering lucrative opportunities for investors focusing on luxury accommodations.
Investing in Maine’s real estate comes with unique challenges, from high maintenance costs due to harsh winters to additional insurance for coastal properties and notable property tax rates. Here’s what to consider to ensure a wise, profitable investment.
Refinancing your investment property involves replacing your current mortgage with a new one, often to secure better terms or access your property’s equity. For foreign nationals, the refinancing process typically includes:
Rate-and-term refinancing allows you to adjust the terms of your current mortgage, potentially securing a lower interest rate or better loan conditions. However, keep in mind that even with a lower interest rate, your total finance charges could be higher over the life of the loan, depending on the new terms.
Cash-out refinancing enables you to unlock the equity in your Maine property, providing access to additional funds.
These funds can be used for property upgrades, debt consolidation, or as a down payment on another investment property within Maine. By offering cash at closing, this option enhances your investment flexibility and opens new opportunities to grow your real estate portfolio.
Learn more about refinancing to maximize the potential of your Maine real estate investments.
Securing a mortgage in Maine as a non-U.S. resident may seem complex, but it can be an efficient and rewarding process with the right approach. Just follow these seven steps:
1. Identify a profitable investment
Research Maine’s real estate market to locate properties with strong rental potential or long-term appreciation prospects. Areas like Portland and Bar Harbor offer high demand for rentals due to their urban appeal and tourist attractions. Tools such as Realtor.com can help you explore current listings and market trends.
2. Gather essential documents
Collect the necessary paperwork to ensure a smooth application process. You will need a valid passport for identity verification, proof of income such as bank statements or pay stubs, documentation of assets like investment portfolios, and property-specific details like appraisal reports or estimated rental income. Some lenders may request credit reports from your home country, so have these ready if applicable.
3. Select a lender experienced with foreign nationals
Choosing a lender familiar with the challenges foreign investors face is crucial. An experienced lender understands how to verify foreign income, manage alternative credit histories, and streamline documentation. Waltz, for example, specializes in foreign national loans and offers tailored solutions to ensure an efficient and straightforward application experience.
4. Set up an LLC and U.S. bank account
Most lenders require foreign investors to establish a U.S.-based Limited Liability Company (LLC) to hold the property title and simplify financial transactions. You must register the LLC with the appropriate Maine authorities, obtain an Employer Identification Number (EIN) from the IRS, and open a U.S. bank account to handle rent collection and loan payments.2 Waltz’s Investor Toolkit provides seamless assistance in setting up an LLC and bank account, saving you time and effort.
5. Submit the loan application
Prepare and submit your loan application, ensuring all required documents are complete and accurate. Include your financial statements, proof of assets, and the property’s rental income potential. Consulting with a lender beforehand can help address any questions or concerns, streamline the submission process, and increase the likelihood of approval.
6. Perform due diligence
Before finalizing the deal, conduct thorough due diligence to verify that the property meets your investment goals. This includes arranging an inspection to assess its condition, obtaining an appraisal to confirm its market value, and responding promptly to any additional document requests from your lender. Carefully review the lender’s term sheet to ensure all conditions align with your expectations.
7. Complete the purchase process
Once the lender approves your loan and completes due diligence, proceed to finalize the transaction. This step involves signing the necessary legal documents, which can often be done virtually if you are not in the U.S., and transferring funds to close the deal. With the transaction finalized, you can officially take ownership of your Maine property and begin managing it as part of your investment portfolio. By following these steps, foreign nationals can confidently navigate Maine’s real estate market and secure profitable investments.
Whether you're looking to invest in U.S. real estate, Maine offers many opportunities to suit your goals. This state is a good destination for building a diversified portfolio with affordable property prices, a thriving tourism industry, and supportive loan options like DSCR mortgages.
