Conventional Investment Property Loans in Massachusetts
Standard Fannie Mae / Freddie Mac investment-property mortgages. Cheapest cost of capital but capped at 10 financed properties and gated by personal income.
What Conventional loans are
Conforming residential mortgage for non-owner-occupied 1-4 unit properties, sold to Fannie Mae or Freddie Mac. Standard 30-year amortization. The lowest-cost real-estate financing available to most investors.
Underwriting and qualifying
Lender requires: 680+ FICO, 20-25% down, DTI typically under 45% including the new mortgage, 2 years of W-2 + tax returns, 6 months of reserves per property. Closing in 30-45 days.
Massachusetts-specific considerations
Massachusetts-specific underwriting nuances apply — verify with a local lender.
What financing looks like at Massachusetts price points
Boston's $793k typical home value at 25% down requires $198k cash + ~$5k closing for a conventional investment-property loan. At 7% interest, monthly P&I runs about $4k — model this against $3,413/mo median rent to project cash flow.
Massachusetts lender ecosystem
Massachusetts has active national-lender presence for conventional investment financing — all major specialty lenders originate here. Local credit unions and smaller regional banks sometimes offer competitive non-traditional investment-property loans that compete on terms vs the national-DSCR product.
Best fit
New investors building their first 1-10 rental properties with verifiable W-2 income and clean credit.
When to use something else
Anyone past 10 financed properties. Self-employed borrowers with low taxable income. Time-sensitive acquisitions (30-45 day close).
Top Massachusetts metros for Conventional-financed investing.
Common questions.
What's a typical Conventional rate in Massachusetts?
6-7.5% is the broad national range. Massachusetts-specific pricing reflects the local lender ecosystem and state foreclosure timeline — longer judicial foreclosure timelines extend lender exposure and tend to push pricing toward the upper end of the national range. Always collect 5+ term sheets before committing.
Which Massachusetts metros are best for Conventional-financed investing?
Based on our investor score across Massachusetts markets we cover: Boston top the list. Top pick Boston runs $793k median with 5.16% gross rent yield — yield is tight, model the math carefully.
How does Massachusetts's wholesale-assignment law affect Conventional deals?
Verify Massachusetts wholesale-assignment law before structuring deals that come from wholesalers.
Financing options in Massachusetts.
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