1st Advantage MortgageMassachusetts has intense rental demand and costly housing, and many investors buy two- and three-family houses to live near their income. A DSCR loan qualifies a non-owner-occupied rental on rent and payment, without tax returns.
Dense demand and strict rules
Massachusetts is where the triple-decker lives, and gateway cities such as Lowell, Lawrence, Brockton, Worcester and Springfield are full of multifamily buildings that investors buy for cash flow. Boston's neighborhoods and inner suburbs are expensive and campus-heavy. Cape Cod and the islands run on seasonal visitors, and the state has its own rules for short-term rentals, including registration and taxes. State lead paint law also matters for pre-1978 rentals, which makes inspection and compliance an important line item.
Where Massachusetts investors look
Universities, hospitals and technology employers create persistent demand. High prices mean the ratio depends on strong rent and sizable cash down.
A large college and healthcare city with many multifamily properties.
Lower price points and a mix of universities and older housing.
Gateway cities with dense multifamily stock and commuter links to Boston.
Seasonal demand and septic and flood considerations. Short-term rental rules and taxes apply.
What you will probably be buying
Two- and three-family houses are central. Condos, single-family houses and small apartment buildings fill out the market.
Costs and details to price in before you offer
Pre-1978 rentals have lead-related obligations that can require inspection or abatement.
Massachusetts closings run through attorneys, and the buyer's attorney plays a major role.
Title V septic rules and flood zones can add cost and affect closing timelines.
Run it, then apply
Put the real tax and insurance figures into the calculator, check the requirements, and if this is your first rental read the first-time guide. Ready? Apply now or get a DSCR quote.
Nearby states
DSCR loans are business-purpose loans on investment property. Availability in Massachusetts depends on the property, the borrower and the lender program, and this page is not an offer to lend. See our disclosures.
More Massachusetts city guides
Local pages for 1 more Massachusetts markets, each with neighborhoods, property types and checks specific to that city.
Frequently asked questions
Can I buy a triple-decker as an investor with a DSCR loan?
Yes. A three-unit property is a standard 2 to 4 unit loan, and the rent from all three units counts toward the ratio, though leverage may be lower than for a single-family home.
What does lead paint mean for my loan?
Mostly for your costs and your ability to rent. If a pre-1978 unit needs compliance work, the appraisal condition or your budget may be affected. Ask your attorney or inspector about requirements.
Are Cape Cod short-term rentals eligible?
On a program that accepts short-term income, if the use is legal and the property meets septic and flood requirements. Otherwise, long-term rent is the standard.