Massachusetts investors often own two- and three-family houses that have climbed in value for years. A DSCR cash-out refinance lets you take some of that equity out based on the building's rents.
In short: Yes, LendingStreet finances DSCR cash-out refinances on investment property in Massachusetts, up to 75% LTV, qualifying on the property's rent. Two-families and triple-deckers in Boston's neighborhoods, Worcester, Lowell, Springfield and similar cities are a natural fit because multiple rents support the payment. The things that slow Massachusetts files are usually property condition, lead paint compliance and heating systems, not the ratio. Standard programs need 1.0x after cash-out, a 620 credit score and no tax returns.
Triple-deckers and side-by-side two-families are a defining part of Massachusetts housing, especially in Dorchester, Somerville, Worcester, Lowell, Lawrence, Brockton and Springfield. With two or three rents covering one payment, these buildings often carry a stronger ratio than a single-family house at the same value.
Properties with 2-4 units fall under our standard DSCR programs. Buildings with five or more units are underwritten as multifamily on net operating income, which is a different process.
This example is illustrative and not a quote. An investor owns a three-family appraised at $720,000 with a $310,000 existing loan. The three units rent for a combined $6,000 a month. Taxes and insurance are $1,000 a month.
At 75% LTV the new loan is $540,000, which leaves $230,000 after the payoff, before closing costs. At a sample rate of 7.125% on 30-year amortization, principal and interest is about $3,638. The total payment is about $4,638 and the DSCR is about 1.29x, well above the 1.0x minimum. If one unit is vacant at application, the lender may use a market rent estimate for it, depending on the program.
Many Massachusetts rentals are 80 to 120 years old. That is normal here, but it means the file will draw attention to items a newer house would not.
Massachusetts has one of the country's strictest lead paint laws. Owners of older rentals where a child under six lives generally must have the unit deleaded or brought under interim control. Lenders and insurers may ask about lead compliance on older buildings.
Real estate closings in Massachusetts are commonly handled by attorneys. Your closing attorney can explain recording costs, title insurance and any municipal requirements for your town, and confirm the closing figures with you.
Greater Boston has the highest values and the most built-up equity, though rents can struggle to keep pace with prices in some suburbs. Worcester, Lowell, Lawrence, Fall River, New Bedford and Springfield offer lower entry prices and multi-unit stock where rents often support the payment well.
On Cape Cod and the islands, seasonal rentals are common. Short-term rental DSCR programs can qualify on projected revenue, with rates from 6.49% for qualified borrowers. Massachusetts taxes short-term rentals and many towns have their own rules, so check before relying on nightly income.
If the owner pays heat, the lender's DSCR uses rent against principal, interest, taxes, insurance and HOA dues, so utilities generally do not enter the ratio directly. They still affect your real cash flow, and they affect what a tenant will pay.
Separately metered heat and tenant-paid utilities make a building easier to underwrite and easier to rent at full value.
Bring leases for each unit, a recent insurance quote, the latest tax bill, a mortgage statement, lead compliance letters if you have them and your LLC documents. If you renovated recently, include receipts and permits, since seasoning rules vary by program.
Our financing team will review the building and come back with 2-3 options.
Yes. LendingStreet finances investment property in Massachusetts, including DSCR cash-out refinances up to 75% LTV on non-owner-occupied rentals, from $150,000.
Yes. Three-family buildings fall under our 2-4 unit DSCR programs and qualify on the combined rents against the new payment.
It can. Massachusetts lead law applies to many older rentals, and lenders or insurers may ask about compliance. Having deleading or interim control letters ready helps.
Some programs will use a market rent estimate from the appraisal for a vacant unit. Others prefer signed leases. Tell us the occupancy up front.
No. Five or more units are underwritten as multifamily based on net operating income. We finance those too, with different terms.
No. The loan qualifies on the property's rent. You need a 620 or higher credit score, reserves and entity documents if borrowing in an LLC.
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