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Hard money loans in Springfield, MA
Fix and flip and rental loans for investors in Springfield and the Pioneer Valley.
Investing in Springfield real estate
Springfield is the largest city in western Massachusetts and has long been called the City of Homes for its Victorian houses. The housing mix is wide: large historic single-families in McKnight and Forest Park, post-war homes in Sixteen Acres and East Forest Park, and two-family houses throughout the older neighborhoods.
Purchase prices are well below those in eastern Massachusetts, which lets investors buy with less cash and can produce strong rent-to-price ratios. That makes Springfield a natural fit for the buy, renovate, rent and refinance approach: a fix and flip loan to acquire and improve the property, then a DSCR loan to hold it.
Neighborhoods investors ask about
- Forest Park: historic single-families and two-families around the park
- McKnight: a historic district of large Victorian homes
- Sixteen Acres and East Forest Park: single-family homes that suit a straightforward flip
- Liberty Heights and Pine Point: two-families and small multi-families
- Indian Orchard: mill-village housing on the city’s east side
What to plan for on a Springfield deal
- Our minimum loan is $75,000. On lower-priced properties, check that your purchase and rehab financing together reach that amount.
- Exterior changes in local historic districts such as McKnight and Forest Park Heights need Historical Commission approval.
- Large Victorians carry large rehab budgets: roofs, porches, windows and heating add up quickly.
- Most of the housing predates 1978, so the Massachusetts lead law applies to rentals where young children live.
Loan programs for Springfield 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 |
Springfield hard money loan questions
Yes. We lend on investment property in Springfield and across the Pioneer Valley, including fix and flip loans, DSCR rental loans and new construction loans.
Yes, as long as the loan is at least $75,000. On a fix and flip loan the purchase and rehab financing are combined to reach that amount.
Yes. A DSCR cash-out refinance at up to 80% loan-to-value is the usual way to pay off a fix and flip loan and keep the property as a rental.
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 Springfield?
Tell us the address, the purchase price and your plan for the property. We will come back with leverage and pricing for your scenario.