Massachusetts has strong long-term rental demand and a deep supply of triple-deckers, but prices around Boston are high. The best DSCR lender is the one whose program fits your building and your exit, whether that is a purchase or a refinance.
In short: There is no single best DSCR lender in Massachusetts; the right program depends on your property type, location and plan. Triple-deckers and two-families in Worcester, Springfield and Lowell often support a healthy ratio, while Boston-area deals usually need more equity because prices are high. Many investors use a DSCR loan to refinance out of short-term renovation financing once units are leased. LendingStreet finances investment property in Massachusetts with DSCR rates from 6.125%, 30-year fixed options and qualification on the property's rent.
Kiavi, CoreVest, Angel Oak and Griffin Funding also write DSCR loans, and LendingStreet offers them in Massachusetts as well. Programs vary on 2-4 unit and 5+ unit eligibility, refinance seasoning, leverage and minimum ratio.
Request term sheets on the same property and the same rents. If you are refinancing, ask each lender how it values a recently renovated building and how long you must own it before using the new appraised value.
Triple-deckers, three-unit buildings with one apartment per floor, are a classic Massachusetts rental. They are common in Worcester, Springfield, Lowell and parts of Boston, and three rents behind one price often produce a solid ratio.
Closer to Boston, purchase prices are high relative to rents. Investors there typically put 25% or more down, buy multifamily rather than single-family, or look at programs that accept a ratio below 1.0. Steady demand from universities, hospitals and employers helps keep units leased.
Massachusetts has a well-known lead law for rental housing. When a child under six lives in a unit built before 1978, the owner generally has lead compliance obligations. Many triple-deckers are old enough to be affected, so ask whether a building has a compliance letter and talk with local counsel about your obligations.
Boston and some other communities also regulate short-term rentals, and those rules limit investor-owned units in some places. Confirm local rules before underwriting short-term revenue. Most Massachusetts DSCR deals are underwritten on long-term leases.
Boston carries the highest basis, with demand driven by education, health care and technology employers. Worcester, the state's second-largest city, has a large stock of triple-deckers and lower prices than Greater Boston.
Springfield in western Massachusetts offers lower entry prices still, and Lowell draws investors with its multifamily housing and access to the Boston area. In each market, build the deal on rents for that specific property, not a citywide average.
This example is illustrative and not a quote. An investor finished renovating a triple-decker that now appraises at $720,000. All three units are leased at $1,900, for $5,700 a month in rent. Taxes and insurance are $1,000 a month, and the short-term renovation loan balance is $480,000.
A new DSCR loan of $495,000 pays off the $480,000 balance and covers sample closing costs of $15,000. That is about 69% LTV. At a sample rate of 7.125% on 30-year amortization, principal and interest is about $3,335. The total payment is about $4,335 and DSCR is about 1.31x, comfortably above the 1.0x standard minimum, with a fixed long-term payment in place of short-term financing.
We offer DSCR rental loans that qualify on the property's rent, with no W-2s or tax returns and LLC borrowing allowed. Rates start at 6.125% for well-qualified borrowers, with up to 80% LTV on purchases, up to 75% on cash-out and a 620 minimum credit score.
We also offer bridge and fix and flip financing, so one financing team can review both the renovation loan and the DSCR refinance. We review the scenario and come back with 2-3 options.
Gather leases for each unit, the current tax bill, an insurance quote, your LLC documents and bank statements for reserves. For a refinance, add the current loan statement and a summary of the work completed.
If the building has lead compliance letters or other inspection records, include them. A complete file helps us match you to the right program sooner.
Yes. LendingStreet finances investment property in Massachusetts, including Boston, Worcester, Springfield and Lowell. Loans are business-purpose on non-owner-occupied property, starting at $150,000.
No one lender fits every deal. Kiavi, CoreVest, Angel Oak, Griffin Funding and LendingStreet all write DSCR loans. Compare term sheets on the same property and rents.
Yes. A triple-decker is a three-unit property, which fits 2-4 unit DSCR programs. The loan qualifies on the combined rent of all three units.
Yes, that is a common path once units are leased. Some programs have seasoning rules on using the new appraised value, so ask about timing early.
Lenders mainly underwrite rent, value and condition, but compliance affects your ability to rent units legally. Ask the seller for any compliance letters and confirm your obligations with local counsel.
It can be, especially on multifamily or with a larger down payment. High prices compared with rents mean many Boston deals need more than 20% down to reach a 1.0x ratio.
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