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Hard money loans in Boston, MA
Fix and flip, rental and construction financing for investment property in every Boston neighborhood, from East Boston to Hyde Park.
Investing in Boston real estate
Boston is a city of small multi-family buildings. Triple-deckers line the streets of Dorchester, Roxbury, Mattapan, East Boston and Jamaica Plain, and brick rowhouses define the South End, Back Bay and Charlestown. For investors that creates two common plays: renovating a tired two- or three-family to sell or hold, and converting a multi-family into condominiums.
Prices are high and good properties move quickly, so the ability to close fast matters. A hard money loan is approved on the deal, which lets you make an offer without waiting on a bank’s income review.
Neighborhoods investors ask about
- Dorchester and Mattapan: triple-deckers and two-families, the classic Boston rental building
- East Boston: multi-families close to the Blue Line and the waterfront
- Roxbury and Jamaica Plain: a mix of rowhouses, triple-deckers and Victorian single-families
- South Boston: condo conversions and new construction
- Roslindale, West Roxbury and Hyde Park: single-families and two-families
- Allston and Brighton: rentals near Boston University and Boston College
What to plan for on a Boston deal
- Building permits run through the city’s Inspectional Services Department. Build review time into your schedule.
- Exterior work in historic districts such as the South End, Back Bay and Beacon Hill needs commission approval.
- Boston limits short-term rentals to owner-occupied homes, so underwrite rental deals on long-term rent.
- Most of the housing was built before 1978, so the Massachusetts lead law applies to rentals where young children live.
- Old buildings hide old systems. Budget for electrical, plumbing and heating, and expect three separate heating systems in a triple-decker.
Loan programs for Boston investors
| Program | What it funds | Maximum leverage |
|---|---|---|
| Fix and flip loans | Buying and renovating a property you plan to resell | Up to 90% of purchase and 100% of rehab, capped at 70 to 75% of after-repair value |
| DSCR rental loans | Buying or refinancing long-term and short-term rentals | Up to 85% loan-to-value on a purchase, up to 80% on a cash-out refinance |
| New construction loans | Ground-up builds, including the land | Up to 90% of cost for experienced builders, capped at 70 to 75% of completed value |
| Portfolio and commercial loans | Several rentals under one loan, plus multifamily and commercial property | Up to 80% on a portfolio purchase; commercial quoted deal by deal |
Boston hard money loan questions
Yes. Boston Fix and Flip Loans lends on investment property throughout Boston, including fix and flip loans at up to 90% of purchase and 100% of rehab, DSCR rental loans at up to 85% loan-to-value, and new construction loans.
Yes. Two- and three-family homes can be financed with a fix and flip loan if you plan to renovate and sell, or with a DSCR rental loan if you plan to hold. A DSCR loan is qualified on the building’s rent, not your personal income.
Boston limits short-term rentals to owner-occupied homes, and we lend only on non-owner-occupied investment property. Boston rental loans are therefore normally underwritten on long-term rent. Short-term rental income can be used in Massachusetts towns that allow investor-owned short-term rentals.
Fix and flip loans average up to 21 days and can close in about 7 days when title and insurance are complete. Rental and DSCR loans take about 30 days, including the appraisal.
Other Massachusetts markets
Have a deal in Boston?
Tell us the address, the purchase price and your plan for the property. We will come back with leverage and pricing for your scenario.