DSCR Loan Massachusetts

Last updated: June 26, 2024

What areas in Massachusetts do you serve?

We serve all non-rural areas of Massachusetts with our loan products. To read more on what that means you can read our article on rural designation for DSCR loans. Massachusetts real estate investors have completed numerous real estate deals with financing from OfferMarket, giving us an insight into several local trends noted below.

Massachusetts boasts a thriving economy with a robust job market, particularly in the technology, healthcare, and education sectors. The population is projected to grow steadily, fueled by an influx of young professionals and retirees seeking a vibrant lifestyle and cultural offerings.

1. Greater Boston Area:

The Greater Boston Area is experiencing steady population growth, with an estimated 25,000 new residents expected in the next 5 years. The region boasts a diverse economy with major players in technology (Life Sciences corridor), finance, education (numerous universities), and healthcare, providing ample economic opportunities.

• 02116 (Back Bay): Upscale neighborhood with high demand for rentals due to proximity to job centers, cultural attractions, and walkability. Major employers include numerous hospitals, universities, and financial institutions. Rents could potentially increase by 4-6% annually as new residents and young professionals arrive.
• 02138 (Brookline): Family-friendly neighborhood with excellent schools and proximity to Longwood Medical Area. Major employers include Brigham and Women's Hospital, Dana-Farber Cancer Institute, and Beth Israel Deaconess Medical Center. Rents could potentially rise by 3-5% annually due to limited availability and steady demand.
• 02142 (Cambridge): Bustling hub near MIT and Harvard University, attracting students, researchers, and tech professionals. Major employers include MIT, Harvard, Google, Biogen, and numerous biotech/pharma companies. Rents could potentially escalate by 5-7% annually due to limited housing options and high demand. Easy access to major highways like I-93 and Route 2.

2. Metro West (Worcester):

The Metro West region, centered around Worcester, is experiencing moderate population growth, with an estimated 10,000 new residents expected in the next 5 years. The area's growing biotech and healthcare sectors, alongside established manufacturing industries, as well as the revitalization of downtown Worcester, are creating new job opportunities.

• 01608 (Downtown Worcester): Revitalized downtown area with ongoing development projects attracting young professionals. Major employers include UMass Memorial Health Care, Hanover Insurance Group, and Fallon Health. Rents could potentially increase by 3-5% annually as demand rises. Close to major routes like I-290 and I-190.
• 01609 (Shrewsbury): Suburban area with excellent schools and proximity to major employers like UMass Medical School. Other major employers include Shrewsbury Public Schools and various healthcare facilities. Rents could potentially increase by 2-4% annually due to a growing population and limited new construction.
• 01653 (Westborough): Home to tech companies and major employers like BJ's Wholesale Club headquarters, Simplivity Corporation, and Raytak Corporation. Rents could potentially increase by 2-4% annually due to a stable job market and growing families seeking good schools. Access to major routes like I-495 and Route 9.

3. Greater Springfield Area:

The Greater Springfield Area is experiencing slow but steady population growth, with an estimated 5,000 new residents expected in the next 5 years. The region boasts a diversified economy with healthcare, education (numerous colleges), and manufacturing as key sectors, providing economic opportunities.

• 01104 (Downtown Springfield): Downtown revitalization efforts are attracting new businesses and residents. Major employers include Baystate Health, MassMutual Financial Group, and several colleges/universities like Western New England University. Rents could potentially increase by 2-3% annually as demand rises. Easy access to I-91 and I-291.
• 01089 (Longmeadow): Upscale suburban community with excellent schools. Major employers include Longmeadow Public Schools and some healthcare facilities. Rents could potentially remain stable or increase slightly by 1-2% annually due to limited availability.
• 01068 (East Longmeadow): Family-friendly suburb with a growing population and proximity to major employers in Springfield. Rents could potentially increase by 2-3% annually due to steady demand.

What are the best DSCR Lender Massachusetts?

There are many DSCR lenders in Massachusetts and you have many options to get your loan funded. As fellow rental property investors, we built OfferMarket to be a low cost DSCR lender. We believe you should never have to wonder if you're getting the best possible terms from your lender. You should never need to waste time negotiating. That's why we provide you with our best possible term sheet every single time -- you get our lowest rate and lowest fees.

Your first loan with OfferMarket is the start of a long term relationship. It's our opportunity to provide you with remarkable value and prove that we deserve to be your partner on your real estate investing journey. We feel a sense of obligation to prove we deserve your business on each and every loan.

Do I need to have my property insured to qualify for funding?

Yes, but if you don't already have insurance, we can roll it into the lending process with no extra charge or effort to you. Our insurance team works with thousands of carriers and is intimately familiar with the insurance requirements of your loan. They will be able to ether talk to the agent of your choice or find the most competitive offer without our network of carriers to complement your loan with no extra effort or expense to you. If you already have insurance, you should get an instant quote to see if we can offer you a more competitive rate and save you thousands of dollars over the lifetime of your policy. Get you instant insurance quote here.

Are you able to lend on rural properties?

We can't lend on rural properties. How can I find out, if my property is rural? Here are more detail on how to verify if your property is rural in our Rural Designation Search Tools. The 2 search tools are hosted by USDA Rural Development Property Eligibility and CFPB Rural and Underserved Areas Checker. Both of the tools must flag the property as none rural for it to be eligible for our funding. Use these instruction to find out if your property is considered rural

What are the requirements for a DSCR loan in Massachusetts?

If you scroll up on this page, you will see a simple checklist that details high level requirements for our DSCR loans in Massachusetts. If you want a more detailed quote for your specific deal, click "start" next to "apply for a DSCR loan" and our online quoting system will produce an accurate quote based on 14 questions related to your deal. Most investors are able to get a complete quote in under a minute because those 14 questions most investors will know answers to. Our most detailed DSCR Loan Requirements can be found here. Once you complete an online quote, you can proceed to your Loan File, where you can peruse the Loan Terms which will detail all the fees and proceeds of the loan in one convenient interface. Get an instant loan quote and Loan File

Why use Massachusetts DSCR Loans to buy investment properties?

DSCR (debt-service coverage ratio) loans can help real estate investors shorten their cash cycle and grow their rental portfolios more rapidly in a few key ways. First, the higher leverage and lower down payments allowed by DSCR loans mean investors can acquire more properties with the same amount of cash on hand, rather than tying it all up in larger down payments. Additionally, the option for interest-only payments creates more positive cash flow that can be reinvested into new property acquisitions. Finally, DSCR underwriting based solely on the rental income of the property itself, rather than the investor's personal income, enables investors to scale their portfolios more quickly without running into debt-to-income ratio restrictions.

Why is now the right time to get a DSCR Loan in Massachusetts?

DSCR loan interest rates are down over 1% over the past 90 days, is now the right time to use a DSCR loan for your next purchase or refinance? If you're looking for a DSCR loan for your rental property in Massachusetts, you are in capable hands with OfferMarket!

The goal of this article is to answer frequently asked questions from our Massachusetts clients about DSCR loans, and provide you with the most competitive DSCR loan terms so you can grow your rental property portfolio as profitably as possible.

Rental properties in Massachusetts tend to generate strong rental income relative to As Is value and are therefore a great fit for financing with a DSCR loan.

How Do DSCR Loans Work in Massachusetts?

A DSCR loan is a mortgage specifically for your Massachusetts rental property. The most common DSCR loan is a 30 year fixed rate mortgage, though there are adjustable rate and interest only options available. The overall process of getting a DSCR Loan in Massachusetts is approximately as follows. You submit an application for a loan (you can get started on your loan with an instant quote) answering 14 questions about your property. An instant quote will tell you if you qualify for the loan in under 1 minute of your time. It will also show you the a preliminary interest rate and loan amount. Once you select desired LTV (which can be changed later), your quote will be converted to a Loan File for processing purposes.

You will have to submit documents as part of your Loan File for underwriting. Documents we may ask for will include personal and property documents such as purchase contracts, current leases, borrowing entity documents, deeds, title work (we will engage a title company or an attorney on your behalf to draw up these documents), background and credit reports (that we will order), bank statements for liquidity verification as well as other documents that may be applicable to your specific deal. Full list of requirements can be found here in DSCR loan requirements.

We will also handle all the aspects of scheduling and appraisal for you. Please note that we have a promotion, where new clients receive a 100% refund at closing for their appraisal and existing clients forever get a 50% refund for their appraisal at closing as our way to say thank you for allowing us to partner with you! Once all the loan documents are submitted, the Loan File goes through underwriting, at which point the underwriting committee may ask for additional documents depending on their discretion. Once the committee receives all the documents and approves the file, closing can be scheduled.

The closing, will be handled by the title company or at the office of closing attorney. Once closing is complete, funds will be wired. Post closing, the loan will be entered into servicing and you will receive information regarding setting up auto-pay or other options that may be available for your loan depending on the specific servicer's capabilities.

How to get a DSCR Loan in Massachusetts?

The easiest way to start your Massachusetts DSCR loan is to click the start button next to "apply for DSCR loan" banners at the top or bottom of this page. OfferMarket's team has expansive experience working with real estate investors across Massachusetts.

Do you do cash out refi no seasoning for Massachusetts loans?

We do offer refinance options with no seasoning requirements. Here is the general criteria for cash out refi no seasoning for Massachusetts loans. Minimum loan amount has to be above $55,000. Minimum As-Is value on the appraisal has to be $100,000. Between 1-4 units. Must have an active lease with proof of security deposit collected. Property condition must be C4 or better. Minimum credit score of 680. Credit score between 680 to 699, gets maximum LTV of 70%, credit score of 700+ gets maximum LTV of 75%. Max LTC, 100% (less than 90 days seasoning), 140% (90 to 179 days seasoning). Minimum verified rehab, 20% of purchase price (less than 90 days seasoning), n/a (90+ days seasoning). Minimum verified rehab, is an improvement that has been done to the unit to verify increase in as-is value in such as short period of time (less then 90 days) to justify the no seasoning period. Origination fee of 1 to 2 points depending on the loan amount to keep the lights on. Lender fee, $1,995 (doesn't go to OfferMarket), includes multiple fees to several different 3rd party verification services, necessary to certify the information in the Loan File for closing. Appraisal at AMC market price, we also have a promotion that new clients get 100% of their appraisal refunded at closing and 50% refund for existing clients. Time to close, 20-25 days.

I know this is a lot of information. You don't have to lift a finger to calculate any of this to see if you qualify, all you have to do is answer 14 simple questions about your deal and we will tell you if we are a good fit for you and what kind of deal we can offer you. To get an answer on your specific situation, please answer 14 simple questions here in our online quoter for Massachusetts DSCR loans.

You can read more about our cash out refi no seasoning requirements or get started on your Massachusetts DSCR loan.

Can you lend on properties worth less then $100k?

In short, no, appraisal as is value must come in at above 100k. We can only lend on properties that are less then $100k if they are in a portfolio with other properties and the portfolio's total as-is value on the appraisal is above $250k. In order to qualify for our loans, the property must appraise for at least $100k as-is at the time of the appraisal, however, total loan amount may be less then 100k, minimum loan amount is $55k.