Best DSCR Lenders in Massachusetts (Rental Property Loans) [2025 Guide]

Massachusetts is home to some of the nation’s most competitive housing markets, from the tech‑driven hubs of Boston and Cambridge to the historic communities of Worcester, Springfield and New Bedford. The state’s economy benefits from strong sectors like education, health care and technology, resulting in low unemployment around 3.4 %. Forecasts project that home prices will rise 3 – 5 % in 2025, with Boston and Cambridge potentially seeing 5 – 7 % appreciation. The high median price—currently around $750,000 in Greater Boston—often makes cash‑flow positive rentals challenging. Yet the statewide average fair‑market rent is $1,955 (studio $1,477, 1‑BR $1,889, 2‑BR $2,355), indicating robust rental demand. DSCR loans help investors overcome income documentation hurdles by qualifying based on rental income. This article walks through DSCR concepts, ranks leading lenders with Select Home Loans at the top, and explores market nuances in Massachusetts.

How we evaluated lenders

Our evaluation focuses on transparency, program breadth and local relevance. We prioritized lenders that publish minimum DSCR thresholds, LTV caps and credit score requirements. Given Massachusetts’s high property values and unique housing stock, we favored lenders willing to finance condominiums, rowhouses and small multifamily units. We also assessed whether lenders accommodate properties used as short‑term rentals or corporate housing, and we valued responsive underwriting, especially in competitive markets like Boston where closing quickly can make or break a deal.

Top DSCR lenders in Massachusetts (Select Home Loans #1)

Select Home Loans

Website: SelectHomeLoans.com
Phone: 888-550-3296

Why #1. Select Home Loans tops our list because of its adaptability in high‑priced markets. SHL is comfortable financing duplexes and triplexes in Boston’s Dorchester or Cambridge’s Central Square as well as single‑family rentals in gateway cities. They often approve DSCR loans with ratios near 1.0 and consider cases down to 0.8 if borrowers have strong reserves or additional collateral. SHL offers 30‑year fixed and adjustable‑rate options, and closing times typically range from three to four weeks. Investors appreciate SHL’s willingness to underwrite condominiums and mixed‑use properties, subject to HOA review.

New Silver

New Silver’s DSCR loans provide interest rates starting at about 5.875 %, require a minimum DSCR of 0.75, allow LTVs up to 80 % and require credit scores of at least 660. Loan amounts range from $150,000 to $3 million, and down payments of 20 % are typical. New Silver finances long‑term rentals and short‑term vacation properties across Massachusetts. Automated property valuations enable faster closings, though complex properties may still require full appraisals.

Longleaf Lending

Longleaf Lending, known for its DSCR programs in multiple states, offers long‑term rental loans with loan values of $75 k–$2 million, LTV up to 80 %, interest rates starting at 6.6 %, and closing times as fast as two weeks. They typically require DSCR ratios above 1.0–1.2, but exceptions are possible for strong borrowers. Longleaf emphasises minimal documentation—no tax returns—and funds single‑family homes and small multifamily properties in Massachusetts. Because of the state’s high property values, some investors use Longleaf for lower‑priced gateway cities like Springfield and Lowell.

LBC Mortgage

LBC Mortgage offers Massachusetts DSCR loans with minimum DSCR 0.75, 20 % down payment, credit score 620+ and minimum loan of $200,000. They focus on long‑term rentals and require a professional appraisal that includes a rent schedule. LBC is suited for investors who want a straightforward underwriting process and are comfortable with the 20 % down requirement.

Angel Oak

Angel Oak’s Investor Cash‑Flow program serves Massachusetts investors seeking flexible DSCR loans. While they do not publish state‑specific thresholds, their national guidelines allow DSCR ratios down to 0.75, LTVs up to 85 % (with higher credit scores), and interest‑only options. Angel Oak can fund loans up to $3 million and will finance condos, 2–4‑unit properties and non‑warrantable condos. However, first‑time investors may face stricter requirements.

Kiavi

Kiavi offers DSCR loans up to 80 % LTV with digital underwriting. They lend across Massachusetts, including Boston, Worcester and Springfield, and accept DSCRs that at least cover monthly payments. Because Kiavi emphasises speed and technology, it can be a good choice for experienced investors comfortable uploading documents and managing the process online.

CoreVest

CoreVest finances Massachusetts rental properties with DSCR thresholds around 1.0 and LTV up to 80 %. They accept FICO scores in the mid‑600s and offer single‑asset and portfolio loans. CoreVest has experience financing larger multifamily buildings (5+ units) and may offer hybrid financing solutions for investors combining DSCR loans with bridge loans.

RCN Capital

RCN provides 30‑year DSCR loans for Massachusetts investors with DSCRs of at least 1.0, LTVs up to 80 % and credit scores around 660. RCN is willing to lend on non‑warrantable condos and small mixed‑use buildings, though underwriting may require additional reserves or lower LTVs. Prepayment penalties usually apply for the first three years but can be bought out.

Visio Lending

Visio’s DSCR loans are available in Massachusetts with LTVs up to 80 % for purchases and 75 % for cash‑out refinances. Minimum credit scores are typically 680, and DSCR ratios should be at least 1.0. Visio finances single‑family homes, duplexes, triplexes and fourplexes as well as warrantable condos. The company emphasises a simple online application and quick pre‑qualification.

DSCR formula and example

DSCR is calculated by dividing the monthly rental income by the property’s monthly fixed expenses (PITIA). For example, assume a condo in Worcester rents for $2,300 per month. The monthly mortgage payment, including taxes, insurance and HOA fees, is $2,100. DSCR = 2,300 ÷ 2,100 = 1.10. Lenders like SHL or New Silver would likely accept this ratio. If the borrower buys a duplex in Springfield renting for $3,000 per month with a $3,000 mortgage, DSCR is 1.0. Lenders might still approve the loan but could charge a higher rate or require more reserves.

Local investor considerations

Market dynamics

Massachusetts’s strong economy underpins robust rental demand. Unemployment sits near 3.4 %, and industries like biotech, finance and education continue to grow. Home prices are expected to increase 3 – 5 % statewide in 2025, with Boston and Cambridge projected to appreciate up to 5 – 7 %. This growth pressures rental yields, making DSCR calculations tight in high‑priced markets. Investors may find better cash flow in gateway cities like Worcester, where purchase prices are lower yet rents remain strong. The Cape and Islands see significant tourism demand but require compliance with local STR rules, and property management costs can be high.

Property types and regulations

Massachusetts has a significant stock of triple‑decker homes (3‑unit properties), condominiums and historic brownstones. Lenders may flag properties with structural issues or those subject to rent control (e.g., the city of Boston considered rent stabilization measures in 2023). Investors buying condos must review HOA reserves and bylaws because lenders like RCN or CoreVest will decline associations with high delinquency or special assessments. Short‑term rentals are regulated differently by municipality: Boston requires registration and caps unhosted rentals; Cape Cod towns like Barnstable and Provincetown require local permits; and some neighborhoods impose minimum lease lengths.

Economic factors

Massachusetts has some of the highest property taxes in the U.S., especially in wealthier suburbs. Insurance costs vary: coastal properties require wind and flood insurance, which can increase monthly PITIA and lower DSCR. Landlords should budget for high maintenance costs on older housing stock and factor in compliance with lead paint and energy‑efficiency requirements.

Qualification checklist

• Credit score: Lenders generally require 620–680+. Better scores may reduce interest rates.
  
• Down payment: A typical requirement is 20 %, though some lenders offer higher LTV with compensating factors.
  
• DSCR calculation: Provide leases or rely on the 1007 rent schedule. A DSCR around 1.0–1.25 is standard.
  
• Reserves: Expect to show 3–12 months of PITIA, especially for lower DSCRs.
  
• Property inspection: Appraisers examine structure, condition and rent comparables; older properties may require additional documentation (e.g., lead paint compliance).
  
• Entity documentation: Many lenders prefer the property be titled in an LLC.
  
• Insurance: Proof of hazard and, for coastal homes, flood and wind coverage.
  

Rates and terms snapshot (subject to change)

DSCR interest rates in Massachusetts start around 5.9 % (New Silver’s floor) but can exceed 8 % for lower DSCRs or cash‑out refinances. Origination fees generally run 1–2 % of the loan amount. Closing times vary by lender, from as little as two weeks with Longleaf or Kiavi to six weeks with more complex loans. Prepayment penalties are common, but some lenders offer buy‑down options. Because of high property values, some investors choose adjustable‑rate structures to maintain lower initial payments.

Frequently asked questions (FAQs)

1) Are DSCR loans available for condos in Massachusetts? Yes, lenders like SHL, New Silver, RCN and Angel Oak finance condos, provided the HOA has adequate reserves and no pending litigation. Non‑warrantable condos may require lower LTVs or higher rates.

2) What DSCR ratio do I need? Most lenders require DSCR ≥1.0. New Silver allows DSCR 0.75 if other factors are strong. Higher DSCRs improve terms.

3) Can I use Airbnb income to qualify? Lenders usually underwrite to the 1007 rent schedule (market rent) rather than nightly projections. Some, like SHL, may consider STR income with documented booking history.

4) Do DSCR loans have prepayment penalties? Many do. For example, typical terms include a 3/2/1 penalty (3 % in year 1, 2 % in year 2, 1 % in year 3). RSC and Angel Oak offer no‑penalty options.

5) Can I finance a 3‑unit property? Yes. Many lenders specialize in duplexes, triplexes and fourplexes. The DSCR is calculated on the combined rental income and expense.

6) What is the minimum loan amount? Lenders vary. New Silver’s minimum is $150,000; RSC may go lower but is not active in Massachusetts; LBC requires at least $200,000.

7) How fast can I close? With a clean appraisal and responsive underwriting, closings may occur in 2–4 weeks. Complex projects or condo reviews can extend timelines.

Conclusion and call to action

Massachusetts’s high home prices and strong rental demand make DSCR loans a valuable tool for investors. By qualifying based on property income rather than personal tax returns, these loans enable self‑employed borrowers and portfolio investors to scale quickly. Among the lenders reviewed, Select Home Loans stands out for its willingness to work with investors in expensive markets and its flexible DSCR thresholds. Nevertheless, comparing other providers like New Silver, Longleaf Lending and Angel Oak ensures you secure competitive terms tailored to your property and strategy. Always verify each lender’s current guidelines, prepare for closing costs and prepayment penalties, and consult local professionals to navigate Massachusetts’s complex regulations. With careful planning, DSCR financing can unlock investment opportunities from Cambridge to Cape Cod.