In Boston the classic rental is the triple-decker: three stacked units, each one a full apartment. Prices are high relative to rent, so the DSCR math here is tighter than in most metros, and the local rules are some of the most detailed in the country.
In short: Yes. LendingStreet finances DSCR loans on 1-8 unit rentals in the Boston area, qualifying on the property's rent with no W-2s or tax returns, LLC borrowers welcome and a 620 minimum credit score. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV and cash-out refinances up to 75% LTV. The city's rental registration, Massachusetts lead paint law, the loss of the residential exemption and short-term rental limits are the Boston items to plan for.
Dorchester, Roxbury, Jamaica Plain, Roslindale, Hyde Park and East Boston hold most of the city's two- and three-family housing. Allston, Brighton and Mission Hill rent heavily to students and young professionals, often on September 1 lease cycles.
Outside the city line, Quincy, Malden, Medford, Revere, Chelsea, Lynn and Somerville offer similar multi-family stock, each with its own tax rate and rules. Worcester and Lowell are farther out and have their own markets, with lower prices and the same triple-decker stock, which is why many Boston-based investors buy rentals there.
| Area | Typical rental stock | What to check |
|---|---|---|
| Dorchester and Roxbury | Triple-deckers, two-families, some 4-8 unit buildings | Lead compliance, rent rolls, condition |
| Allston, Brighton, Mission Hill | Multi-unit buildings with student tenants | Turnover, September 1 leases, occupancy limits |
| East Boston | Two- and three-families near the harbor | Flood zones, insurance |
| Quincy, Malden, Revere, Lynn | Two-families and small apartment buildings | Local tax rate, inspection rules |
Most Boston-area DSCR loans are on two- and three-family buildings, which qualify on the combined rent of every unit. Buildings with 5 to 8 units are common in Dorchester, Brighton and the inner suburbs and are still residential DSCR loans, though maximum leverage can be lower and varies by program.
Because prices are high relative to rent, many Boston purchases do not reach 1.0x at 80% LTV. Investors typically bring a larger down payment, buy buildings with below-market rents they can raise over time, or look at sub-1.0 DSCR programs. Many buildings are 100 years old, so heating systems, porches and egress get close attention.
Boston's residential tax rate is modest, but the city's residential exemption only applies to owner-occupied homes. When an owner-occupant sells a two- or three-family to an investor, the exemption comes off, and the tax bill can rise noticeably. Budget on the full bill without the exemption.
Massachusetts charges a deeds excise tax on the sale, customarily paid by the seller, and there is no separate state mortgage tax. Closings are handled by attorneys. Ask for a closing cost estimate early, especially on larger purchases.
Massachusetts lead law requires owners to delead or bring under control any home built before 1978 where a child under six lives, and it applies regardless of what the lease says. Much of the triple-decker stock predates 1978, so ask for lead inspection and compliance letters. Nor'easters, ice dams and coastal flooding in East Boston and other low-lying areas also affect insurance.
Boston requires rental units to be registered with the city, and many units are subject to periodic inspections under the rental registration and inspection ordinance. Other cities, including Quincy, Malden and Somerville, have their own certificate or inspection rules. Confirm registration status before closing.
Boston's short-term rental ordinance limits nightly rentals mainly to owner-occupied units, so investor-owned whole units generally cannot operate as STRs in the city. Investors who want short-term rental income usually look at Cape Cod or western Massachusetts, where local rules differ. Most Boston DSCR loans use 12-month leases.
This example is illustrative and not a quote. An investor buys a Dorchester triple-decker with all three units leased, using actual rents rather than projected increases.
The purchase price is $1,350,000 and the rent is $8,700 a month. At 80% LTV the loan is $1,080,000, so the down payment is $270,000 before closing costs. Estimated principal and interest on a 30-year loan comes to about $7,368, and taxes and insurance add $1,675, for a total payment of about $9,043. Rent divided by that payment gives a DSCR of about 0.96x, below the 1.0x standard minimum.
At 70% LTV the loan drops to $945,000, the payment falls to about $8,122 and the DSCR rises to about 1.07x. The investor brings $135,000 more to closing, which is the usual trade in a market where prices run high relative to rent.
| Item | 80% LTV purchase | 70% LTV purchase |
|---|---|---|
| Purchase price | $1,350,000 | $1,350,000 |
| Loan amount | $1,080,000 | $945,000 |
| Estimated principal and interest | $7,368 | $6,447 |
| Property taxes | $1,300 | $1,300 |
| Insurance | $375 | $375 |
| Total monthly payment | $9,043 | $8,122 |
| Monthly rent | $8,700 | $8,700 |
| DSCR | 0.96x | 1.07x |
The loan qualifies on the debt service coverage ratio: monthly rent divided by the full payment, including principal, interest, taxes, insurance and any HOA dues. Standard programs look for 1.0x or higher, and sub-1.0 programs exist for properties that fall a little short.
Duplexes, triplexes and fourplexes qualify on the combined rent of every unit. Buildings with 5 to 8 units are still residential DSCR loans, though maximum LTV can be lower and varies by program. For 9 or more units, see our commercial multifamily options. The same terms apply statewide; our Massachusetts DSCR page covers the rest of the state.
Send the address, price or estimated value, the rent and the leverage you want. Our investor loans are business-purpose loans on non-owner-occupied property, and the financing team will run the ratio at a few loan amounts and come back with options. Use the form below or call (877) 298-1001.
Yes. A triple-decker qualifies on the combined rent of all three units. Purchases go up to 80% LTV, but Boston prices often mean a larger down payment to clear 1.0x.
Generally not in an investor-owned unit. Boston limits STRs mainly to owner-occupied homes, so most DSCR loans in the city use long-term leases.
It affects the property. Pre-1978 homes with young children must be deleaded or brought under control, so compliance letters help with insurance and with protecting your investment.
The residential exemption only applies to owner-occupied homes. When an investor buys, the exemption no longer applies to the property.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so a home you live in does not qualify.
Yes. LLC borrowers are standard on DSCR loans. You sign for the loan personally and provide the operating agreement and formation documents.
Standard programs look for 1.0x or higher, meaning rent at least covers the full payment. Sub-1.0 programs exist for properties that fall slightly short.
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