Greater Boston's triple-deckers, brownstone condos and suburban colonials regularly sell above $1 million, and so do many homes on Cape Cod and the Islands. A large DSCR loan lets the rent qualify the deal.
In short: LendingStreet finances $1M+ Massachusetts rentals with DSCR loans that qualify on the property's rent, with no W-2s or tax returns. Loans start at $150,000 with no stated maximum, and larger balances are reviewed and priced case by case. In the Boston area, two- and three-family homes are often the most financeable large-balance rentals because several rents support the price. Lead paint rules on older housing, septic inspections on the Cape and local short-term rental limits are the state-specific items to plan for.
The property type shapes the whole file. Here is how the common $1M+ Massachusetts rentals tend to line up, before any numbers are run.
| Property | Typical areas | Main approval questions |
|---|---|---|
| Two- or three-family (triple-decker) | Somerville, Cambridge, Dorchester, Jamaica Plain, Brookline | Leases, legal unit count, lead paint compliance |
| Brownstone or high-rise condo | Back Bay, South End, Beacon Hill, Seaport | Condo budget and reserves, HOA dues, rental rules |
| Executive single-family | Newton, Wellesley, Lexington, Concord, the North Shore | Rent support for one large home, taxes, insurance |
| Seasonal or vacation home | Cape Cod, Martha's Vineyard, Nantucket | Local STR rules, septic, coastal insurance |
The three-family triple-decker is a Boston-area signature, and in Somerville, Cambridge and much of Boston proper, good ones trade above $1 million. For a DSCR loan, that is a useful structure: three rents carry one mortgage, one tax bill and one insurance policy.
Two-family homes work the same way at somewhat lower prices. Many investors in these neighborhoods buy a building with existing tenants and leases running on the September 1 cycle that is common around Boston's universities. Lenders look at the leases and the rent roll, and the appraiser checks market rent for each unit.
These buildings are often a century old. Expect questions about the roof, heating systems, electrical and, above all, lead paint compliance.
This example is illustrative and not a quote. An investor buys a three-family building in a city bordering Cambridge for $1,350,000. Each unit rents for $3,200 a month, so combined rent is $9,600. Property taxes and insurance total about $1,050 a month.
At 75% LTV, the loan is $1,012,500 and the down payment is $337,500. At a sample rate of 7.00% on a 30-year fixed, principal and interest is about $6,736. The total payment is about $7,786. DSCR is $9,600 divided by $7,786, or about 1.23x, well above the 1.0x standard minimum.
The same price on a single condo with one rent would rarely produce a ratio like that. That is the main reason multi-family properties dominate large-balance DSCR requests around Boston.
Downtown Boston rentals at $1M+ are mostly condos: units in Back Bay and South End brownstones, Beacon Hill buildings and newer towers in the Seaport and downtown. DSCR loans can finance condos, but the building is reviewed along with the unit.
Small brownstone associations with only a few units can be harder to review than large buildings, because budgets, reserves and insurance may be informal. Larger towers bring higher condo fees, which go straight into the payment. In both cases, a condo questionnaire and the master insurance policy are standard.
Check the building's rules on rentals before you buy. Some associations limit leasing or require minimum lease terms.
Towns west and north of Boston, including Newton, Wellesley, Lexington, Concord and the North Shore communities, have high-value single-family homes that rent to families and relocating professionals, often for school districts. These are one-rent properties, so the ratio depends heavily on the down payment.
Rental comparables for large single-family homes can be thinner than sales comparables. A signed lease helps the appraiser support the rent. Property taxes vary by town and are a real line in the payment, so use the actual bill.
Cape Cod, Martha's Vineyard and Nantucket have some of the most expensive vacation homes in New England, and many are rented in summer. Seasonal income can qualify a DSCR loan through STR programs that use projected revenue, with STR DSCR rates from 6.49% for qualified borrowers.
Massachusetts requires short-term rentals to be registered with the state, and many Cape and Island towns add their own rules. Some limit rentals or require local registration and inspections. Confirm what the town allows before you count on nightly or weekly income.
Coastal properties also bring insurance questions. Wind and flood coverage near the water can be expensive and, in some spots, harder to get from standard carriers, so get quotes during your inspection period.
Several state and local rules show up on Massachusetts rental files. None of them is a reason to avoid the state, but each is easier to handle early. Confirm the details with a local attorney or your title company.
At $1M and above, underwriting looks at the same things it looks at on any DSCR loan, but with less room for error. The ratio comes first. After that, reserves, credit and the property's condition carry more weight than they would on a smaller loan.
Reserves are the item investors most often underestimate. Larger loans often require more months of payments in the bank after closing, and the payment on a seven-figure loan is large. Plan your down payment so you still meet the reserve requirement afterward.
Credit matters for pricing at every size, and on large balances the gap between a strong score and the 620 minimum can show up in both rate and maximum leverage. Property condition matters too: an older two- or three-family with deferred maintenance may draw repair conditions from the appraiser.
DSCR rates start at 6.125% for well-qualified borrowers and larger balances are priced case by case. Purchases go up to 80% LTV and cash-out refinances up to 75%. On large balances, maximum LTV is often lower and reserves higher, and some programs require a second appraisal or a more detailed review.
Many Boston-area owners bought two- and three-family homes years ago and now hold substantial equity. On a cash-out refinance, the rent must cover the new, larger payment at the program's minimum ratio. Seasoning varies by program: some allow cash-out with little seasoning, while others want several months of ownership or cap the loan at the purchase price plus documented improvements.
The minimum credit score is 620, with better pricing at higher scores. LLC borrowers are allowed and 30-year fixed options are available. The standard minimum ratio is 1.0x, with some programs below 1.0 and some no-ratio options. The financing team reviews your scenario and comes back with 2-3 options.
Outside the most expensive Boston neighborhoods, many Massachusetts rentals finance in the $500K to $1M range. Common examples include two- and three-families in Worcester, Lowell, Lawrence, Brockton and Springfield, condos in Quincy and Waltham, and smaller Cape Cod cottages in towns like Dennis, Yarmouth and Falmouth.
These loans often carry leverage closer to the program maximums of 80% LTV on purchases and 75% on cash-out, with reserve needs that are often lighter than on $1M+ loans. It varies by program. A multi-family in one of the Gateway Cities often brings in more rent per dollar of price than a single condo, which helps against the 1.0x standard minimum.
Lead law compliance on older units, Title 5 septic rules on Cape properties, and local short-term rental registration still apply at this size.
Send as much of this as you have with the first request. It shortens underwriting, especially on large loans where a closer review is common.
Yes. LendingStreet finances investment property in Massachusetts, including Boston-area multi-family buildings, condos, suburban homes and Cape Cod properties above $1 million. Loans start at $150,000 with no stated maximum.
Yes. Three-family homes are often a good fit because three rents support one payment. The lender reviews the leases, the legal unit count and the building's condition.
It can come up in underwriting on older buildings, and it matters for your obligations as a landlord. Have any compliance letters ready and confirm your responsibilities with a local attorney.
Usually not. Boston sharply limits short-term rentals of units that are not the owner's home. Plan to qualify Boston units on long-term rent.
Possibly. STR DSCR loans can use projected revenue where local rules allow short-term rentals. Confirm registration and town rules, and get coastal insurance quotes early.
Local rent control was ended by statewide vote in 1994. Proposals to change that come up periodically, so confirm the current rules before you buy.
Purchases go up to 80% LTV, but on large balances the maximum is often lower, and the ratio may need more equity on single-rent properties. Use the DSCR calculator to test your numbers.
No W-2s or tax returns are required. The loan qualifies on the property's rent, with a 620 minimum credit score and reserves.
Some programs require a second appraisal or a more detailed review on large balances. If yours does, the financing team will tell you at the start so you can plan the timeline.
Yes. DSCR loans start at $150,000 with no stated maximum, and $500K to $1M loans are common for multi-families in Worcester, Lowell and Springfield, suburban condos, and Cape Cod cottages.
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