4 Loan Programs to Help You Buy Investment Property in Massachusetts

Funding for real estate deals is necessary for most investors to get started. Experienced investors take advantage of the opportunity to profit from using the funds when necessary to grow their investment business. Loans for investment property are more difficult to attain than for primary residences. However, if you do your homework, you will find a loan program that will suit your needs.

We will explore four loan programs to help you buy investment property in Massachusetts.

Private Loans

Businesses offering long-term loan programs to help you buy investment property in Massachusetts, these loans help buyers with less than perfect credit, yet are often accessed by successful investors as well. The lenders profit off of the interest you charge. Standard ranges are from 6% to 14%. The terms can vary, typically 24 to 144 months. The loan terms and interest rates can vary greatly when a private individual makes the loan. These loans may be from a family who want to help attain the benefits of passive income or friends and acquaintances. There is also the option of a “peer-to-peer” loan, typically found online, where you convince a private investor to work with you.

FHA and VA

These are government-backed loan programs to help you buy investment property in Massachusetts. One caveat of these loans is that the borrower dwells in the property for a minimum period, thereby qualifying for the loan as a primary residence. These programs are for multi-family properties of two to four units, FHA loans requiring only 3.5% down and zero down for a VA loan. Interest rates are lower for these loans. A 30 year fixed FHA is currently 3.250% with an APR of 4.31%, and the 30 years fixed VA is presently 2.500% with an APR of 2.804%. These lower interest rates can help first-time buyers attain homeownership and begin their real estate investment business to build their retirement nest egg.

Fannie Mae and Freddie Mac

These loans conform to financing limits set by the FHA and meet specific underwriting guidelines and require an excellent credit history and a robust income. It is best to have a larger down payment. These conventional loans are a great way to help experienced investors buy more investment property in Massachusetts. Careful research will show you that these loans are available from many providers at very competitive rates, so it pays to compare. 

Portfolio Loans

Portfolio loan programs are easier to attain, as they are nonconforming, helping people with less than perfect credit buy investment property in Massachusetts. Experienced investors may also finance several properties under one portfolio loan. These lenders profit from originating loans, as conventional lenders do. However, they hold the mortgages in their portfolio instead of selling them on the secondary mortgage market. The interest rates are higher, varying from nearly 6% to 12%, with loan origination fees of up to 3% and closing costs of 2% to 5% of the borrowed amount. The terms of the loan can vary greatly, depending upon which program you select.

Understand Local Financing Rules and Trends

Before applying for any loan, it’s important to understand how local market conditions and state regulations might impact your investment strategy. For example, some Massachusetts municipalities have implemented rent control discussions, zoning restrictions, or short-term rental limitations that lenders may take into account when assessing risk. Being informed helps you select the right type of financing for your property and exit strategy. You can stay updated by checking out resources like the Massachusetts Division of Banks, which offers consumer information and lender licensing data, or the MassHousing website, which provides details on multi-family support programs and loan guarantees.

Use Tools to Calculate Your Cash Flow and Returns

Before choosing a loan, it’s essential to model your cash flow projections based on the loan terms and expected rental income. Tools like the BiggerPockets Rental Property Calculator or FHA Mortgage Loan Calculator can help you plug in numbers and compare different loan options. Knowing how interest rates, terms, and origination fees affect your return on investment will give you more confidence when talking to lenders. Being well-prepared not only improves your chances of loan approval, it also helps you avoid stretching your finances too thin as you build your portfolio.

Don’t Overlook the Power of Relationships

Many successful investors in Massachusetts build strong relationships with local lenders, credit unions, and community development institutions. These lenders may offer portfolio products, flexible underwriting, or even rehab financing options that national banks don’t provide. Relationships can also be a lifeline when you need fast closings or creative deal structures. Explore options through community-focused lenders like Boston Private Bank, Eastern Bank, or local CDFIs (Community Development Financial Institutions) that may be more open to working with new or unconventional borrowers.

We’ve Helped Families Across Massachusetts Move Forward With Confidence

At Ephesus LLC, we’ve recently helped buyers and families successfully purchase property throughout Boston, Revere, Malden, Everett, Chelsea, Lynn, and surrounding communities. Whether you’re buying your first multi-family or adding to an existing portfolio, our team understands the financial, emotional, and logistical challenges that come with investing in real estate. We provide honest guidance, flexible purchase options, and connections to trusted professionals, because our goal isn’t just to close deals, it’s to help you make smart decisions that move your life forward. We buy in many cities across Massachusetts and would love to hear your story. Call us for a free private consultation at (617) 340-6527 or send us a message today.

Sound complicated? The experienced professionals at Ephesus LLC can help guide you to the loan programs to help you buy investment property in Massachusetts. At Ephesus LLC , we take the time to listen to the hurdles you may be facing. Our team at Ephesus LLC is ready. With experts from every walk of the real estate industry, Ephesus LLC is on call to help you. Whether you’re a first-time investor or prepared to take your Massachusetts real estate investment portfolio to the next level, Ephesus LLC makes it easy to achieve your investment goals. Send us a message or call Ephesus LLC at (617) 340-6527 to learn more.