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Hard money loans in Worcester, MA
Financing for flips, rentals and new construction in New England’s second-largest city.
Investing in Worcester real estate
Worcester has one of the largest collections of triple-deckers in New England. They were built for the families who worked in the city’s mills and factories, and they are still the backbone of its rental market. A three-family that needs work is the typical Worcester investment property.
Investors come here for purchase prices below Greater Boston and for steady rental demand from the city’s colleges and hospitals, including WPI, Clark University, Holy Cross, Worcester State and UMass Chan Medical School. Commuter rail connects Union Station to Boston, and the Canal District around Polar Park has drawn new development.
Neighborhoods investors ask about
- Main South: multi-families near Clark University
- Vernon Hill and Grafton Hill: dense triple-decker streets
- Burncoat and Greendale: single-families and two-families on the north side
- Tatnuck and the West Side: larger single-family homes
- Canal District and downtown: lofts, mixed-use buildings and new construction
What to plan for on a Worcester deal
- Triple-decker rehabs are bigger than they look: three kitchens, three baths, three heating systems and usually a stack of rear porches.
- Most triple-deckers predate 1978, so plan for the Massachusetts lead law if you will rent to families.
- Near the colleges, leases follow the academic year. Time your renovation to finish before the fall rental cycle.
- A DSCR loan on a three-family counts the rent from all three units toward the ratio.
Loan programs for Worcester 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 |
Worcester hard money loan questions
Yes. We lend on investment property throughout Worcester and Central Massachusetts, including fix and flip loans, DSCR rental loans and new construction loans.
Yes. A DSCR loan is qualified on the property’s rent compared with its full monthly payment, and the rent from every unit counts. Purchases can be financed at up to 85% loan-to-value.
The minimum loan is $75,000.
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 Worcester?
Tell us the address, the purchase price and your plan for the property. We will come back with leverage and pricing for your scenario.