Second home loans on Mount Desert Island

Bar Harbor: Condos and in town homes can bring association insurance questions and short term rental rules. If you will live in the place yourself for part of the year, that is usually a second home loan. If the plan is full time rental income, that is a different product and I will say so up front. Bar Harbor has its own vacation rental rules, so check them before you count on renting the place. Some Bar Harbor condos, especially condo hotels and projects with heavy rental use, are non warrantable, which narrows the lender list. I can review a condo project before you make an offer.

Southwest Harbor: More year round feel on the quiet side of the island. Waterfront and older homes still need a clear occupancy story, solid insurance, and an appraisal that supports the price.

Elsewhere on MDI: Northeast Harbor, Seal Harbor, Somesville, and Bass Harbor fall under the same second home rules. The property type and how you will use it matter more than the village name.

1. Mount Desert Island sits in Hancock County and holds most of Acadia National Park.
2. Bar Harbor is the island's main service town and has more condo and association properties than the quieter villages.
3. Southwest Harbor sits on the western side of the island and draws more year round residents.
4. The island connects to the mainland by bridge at Trenton, so it is reachable year round.
5. Nearby Ellsworth is the common mainland hub for shopping, medical care, and many closings for island purchases.

• You have a separate primary residence.
• You intend to use the MDI home yourself, not as a pure rental.
• A second home loan is for a one unit home. A duplex, or a house with a separate apartment you plan to rent, is usually financed as an investment property instead.
• Credit, income and reserves.
• Insurance, including flood when required.
• An appraisal that supports the price.

Educational note: conventional second home guidelines often go up to 90% of the price, which is less down than most investment property loans, but exact terms depend on the file.

Hancock County camps with seasonal utilities, dirt roads, or unfinished interiors can narrow the lender list. My guide to financing a Maine camp or lake house covers what to check before you make an offer. For the details buyers ask me about most on the island, read what to know before you finance a second home on Mount Desert Island.

• Conventional second home purchase or refinance.
• Jumbo financing when the price calls for it.
• Non QM when full documentation does not fit. For owner occupied second homes, I review the documentation options that fit your file.
• Bridge financing when you are buying before you sell.

DSCR is a separate investment property product available in 37 states. This page is about second homes in Maine that you use yourself. If you already own a Maine home, a Maine HELOC may be another way to fund the purchase. See my vacation and second home loans page for the wider picture.

You deal with me from start to finish. Call or text (207) 615-7770, use the contact form, take the quick qualify check, or apply online.