Hard Money Loan Massachusetts

Last updated: May 13, 2025

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Our Hard Money Loan program in Massachusetts is crafted for speed, reliability, and affordability. It's built to help real estate investors finance the purchase, refinancing, and renovation of 1-4 unit residential investment properties across the Bay State.

Whether your goal is to flip a home for profit or renovate and hold as a rental before refinancing into a DSCR loan, we’d love the opportunity to be your lending partner and support your success here in Massachusetts.

Let’s dive into the details of OfferMarket’s Hard Money Loan Program.

What is a hard money loan?

A hard money loan is a short-term loan backed by real property — specifically 1-4 unit residential real estate — that enables you to acquire, rehab, or refinance an investment property quickly. These loans are often referred to as "fix and flip loans" or "bridge loans" within the Massachusetts investor community.

Hard money loan scenarios

Massachusetts real estate investors typically turn to hard money loans for situations like these:

• Acquiring and renovating a distressed property in cities like Lowell or Brockton, minimizing out-of-pocket cash

• Refinancing a property purchased with cash in places like Fall River, allowing you to unlock equity for the renovation phase

• Paying off an existing loan on a property that still needs improvements, commonly seen in towns like New Bedford or Fitchburg

• Purchasing undervalued properties in neighborhoods like Dorchester or Lynn with no intention of renovations — aiming to resell in as-is condition

• Refinancing a prior cash deal in markets like Taunton or Lawrence without any renovation plans, just to tap into equity

• Extending time on a property that’s already been rehabbed — waiting for the best resale or refinance opportunity

How it works

Each hard money loan has two main components:

• Initial Advance – This is the portion of the loan allocated for the property purchase, wired directly to your Massachusetts closing attorney or title company.
• Construction Holdback – This is the reserved portion for renovations. Funds are released to you based on draw requests as the rehab progresses.

Our loans are flexible by design. If you only need rehab funds, skip the initial advance. If you're just buying and not renovating, skip the holdback.

In practice, most Massachusetts investors use both to boost leverage and preserve their capital. Some may prefer to use their own cash for rehab, while others use our holdback feature to cover up to 100% of the rehab budget — especially helpful when renovating triple-deckers or Cape Cod-style homes common across the state.

Whether your plan is to flip the property or hold it as a rental, we support both paths. Many investors enter a deal with a clear strategy — say, a BRRRR in Western MA — but pivot based on local market conditions.

Maybe you planned to rent out a duplex in Holyoke, but a strong resale market presents a better opportunity. Or maybe you were prepping to flip in Salem, but rental demand looks stronger than expected. Having a dual-exit strategy helps you stay nimble and reduce risk.

Who uses hard money loans?

Across Massachusetts, we work with a variety of real estate investors who use our hard money loans to fund projects from Cape Cod to the Berkshires:

• Fix and Flip Investors
  These investors purchase undervalued properties, renovate them, and resell for profit — a common approach in revitalizing neighborhoods like Dorchester or Quincy.
• Rental Property Investors (BRRRR Method)
  The BRRRR strategy — Buy, Rehab, Rent, Refinance, Repeat — is popular in Massachusetts towns where rental demand is strong, like Worcester or Lowell. Many of our clients use our Fix and Rent bundle, which includes a hard money loan for acquisition and rehab, followed by a discounted DSCR loan for the refinance.

As we often see across the state, experienced investors maintain flexibility — choosing to flip or rent depending on how the project evolves. This hybrid strategy is a best practice in managing risk and maximizing ROI.

Hard Money Loan Program Guidelines

Project Eligibility

Our priority is to help you manage risk while growing your Massachusetts real estate portfolio. OfferMarket maintains an industry-leading loan default rate of less than 0.5%. We do this by partnering with you as not just a lender, but a deal advisor and risk manager.

We caution less experienced borrowers against taking on “heavy” or “extensive” rehab projects — such as full gut jobs on historic brownstones in Boston or major additions in Newton — as these projects carry greater risks, especially during economic uncertainty.

To help set clear expectations and promote safe investing, we’ve implemented a structured rehab scope classification system, and eligibility is tied to both your experience and the scope of the project.

Initial Advance

Your Initial Advance — the loan portion used toward purchase — is determined based on both your background and the specific deal. We review:

• Number of Massachusetts investment properties owned over the last 24 months

• Number of verifiable completed rehab projects in the last 5 years

• Minimum FICO score of 680 (720+ preferred for personal guarantors)

We offer higher leverage to Licensed Realtors, General Contractors, and Professional Engineers — a nod to the many investor-operators active in markets like Worcester and Brockton.

If your purchase price exceeds the As Is value in our appraisal or in-house valuation, your initial advance will be based on that lower value.

Exit strategy also impacts your advance:

• Flip exit: minimum projected gross margin of 30%, and minimum profit of $15,000

• Rent and refinance: minimum 1.1 DSCR after repairs

For rural areas of Massachusetts (such as Berkshire County or parts of Franklin County), expect limited initial advance and a minimum of 3 verifiable completed projects.

Experience-based Tiers

Initial Advance by Tier

Adjustments to Initial Advance

Rehab Scope Classification

Note: A “lopsided deal” (low purchase price compared to rehab budget) will be subject to stricter limits, especially in rural Massachusetts.

Rehab Scope Eligibility

LTARV Limits

Your maximum Loan-To-After-Repair Value (LTARV) depends on both your experience tier and the rehab scope classification. This is a key part of evaluating your hard money loan in Massachusetts.

LTFC Limits

Loan-To-Full-Cost (LTFC) is relevant when your rehab budget exceeds the purchase price — which can often happen in parts of Massachusetts with older housing stock like Fitchburg or Springfield.

LTFC of 85% means we’ll fund up to 85% of the total project cost (purchase + rehab). You cover the remaining 15%.

Example: No Experience

Purchase price: $100,000
Tier: 1
Credit score: 695
Rehab budget: $24,000
ARV: $150,000
Initial advance: $75,000 (75%)
Construction holdback: $24,000
Total loan amount: $99,000
LTARV: 66%
LTFC: 79.8%
Interest accrual: Full boat

Example: No Experience, Excellent Credit

Purchase price: $100,000
Tier: 1
Credit score: 750
Rehab budget: $24,000
ARV: $150,000
Initial advance: $80,000 (80%)
Construction holdback: $24,000
Total loan amount: $104,000
LTARV: 69.33%
LTFC: 83.9%
Interest accrual: As disbursed

Example: 5 Completed Projects

Purchase price: $100,000
Tier: 4
Credit score: 750
Rehab budget: $20,000
ARV: $150,000
Initial advance: $90,000 (90%)
Construction holdback: $20,000
Total loan amount: $110,000
LTARV: 73.33%
LTFC: 91.67%
Interest accrual: As disbursed

Refinance Using As Is Value Instead of Cost Basis

For Massachusetts investors with seasoned properties worth more than the cost basis (purchase + improvements), we offer refinance options based on the As Is value, if:

• Property is habitable (C4 condition or better)

• Property has been owned ≥ 3 years

• No late fees or default interest on prior lender’s payoff

• Credit score is 680+

• Experience tier is 3 or higher

• As Is value is well-supported by neighborhood comps

• Scenario aligns with practical business use (e.g., tenant moved out, now renovating to sell)

Wholesaler Transactions

If you're acquiring a property via a wholesaler in Massachusetts — say a contract assignment in Chelsea or New Bedford — we can finance the assignment fee, up to 20% of the original contract price, provided:

• The markup isn’t more than 20%

• You provide full contract chain (A-B and B-C)

• The transaction is arm’s length

• The wholesaler’s operating agreement is included

• The property was not listed on MLS (off-market deals only)

Construction Holdback

Your construction holdback is the portion of the loan reserved for property improvements. Funds are disbursed through a draw process, reimbursing you for verified work completed.

If you're working on a renovation in Worcester, Fall River, or any other Massachusetts city and prefer to use your own capital for the rehab, you're not required to include a holdback.

However, for most investors — especially those managing multiple projects across the state — using the construction holdback offers maximum leverage and efficiency. Note: for loan amounts ≥ $100,000, interest is only charged on the disbursed portion.

Appraisal and In-house Valuation

A valuation is required for all OfferMarket hard money loans in Massachusetts. Depending on your scenario, this may be a third-party appraisal or an in-house valuation.

In-House Valuation

We reserve the right to request a third-party appraisal at our discretion.

Exterior Appraisal

Allowed for the following situations:

• REO sale

• Foreclosure auction

• Sheriff’s sale

• Online auction

• Bankruptcy sale

Exterior appraisals must be dated within 120 days of settlement. If older than 120 but less than 180 days, a recertification is required.

Interior Appraisal

Required in all other cases. Forms used:

We order the appraisal through our AMC. You’ll be responsible for paying the appraisal invoice. Loans are placed on HOLD until payment is received.

Appraisal Transfer

External appraisals can be transferred if:

• Ordered via approved AMC

• Less than 180 days old

• Recertified if 120–179 days old

• Transfer includes signed certification letter, PDF + XML reports, and paid invoice

Scenario: Stabilized Hard Money Loan

If your Massachusetts property is already in good condition (C4 or better), we may fund based on the As Is value without requiring a rehab scope. This is ideal for investors listing turnkey properties or refinancing rentals.

Key Loan Details

Extensions

Hard money loans are structured for short-term use — usually 12 to 24 months. Most Massachusetts investors repay within 12 months, but extensions are available if needed.

To avoid costly delays, we advise you to:

• Work with experienced GCs

• Keep rehab scope aligned with your skill and liquidity

• Avoid municipalities with slow permitting/zoning (like parts of Boston or Cambridge)

• Ensure property access (no holdovers or remaining leases)

• Pursue deals with dual exit strategies

Extension Limits

Extension Terms and Fees

Note: Your Builders Risk insurance must cover the full extension period.

Ineligible Property Types

The following types are not eligible for OfferMarket’s hard money loans in Massachusetts:

• Mixed use

• 5+ unit multifamily

• Condotels

• Co-ops

• Mobile or manufactured homes

• Commercial buildings

• Cabins or log homes

• Properties with oil/gas leases

• Operating farms, orchards, or ranches

• Seasonal/vacation rentals

• Exotic/luxury homes

• Properties on unpaved/dirt roads

Exception Scenarios

• Guarantor credit score between 660–679

• Leasehold (ground rent)

• SFR between 500–699 SQFT

• 2–4 unit with one or more units 400–499 SQFT

• Initial advance based on higher As Is value

• Non-arms length transactions

• Financed interest payments

Borrower and Guarantor Requirements

Liquidity Verification

To ensure you're well-capitalized for your Massachusetts investment, we verify that you (or your guarantor group) have enough liquid assets to safely close and complete your project.

Requirement: Estimated cash to close + 25% of your rehab budget

Eligible assets:

• Personal and business checking/savings accounts

• Bank accounts in the name of the borrowing entity

• Accounts owned by another business entity (requires operating agreement)

• Personal or entity-held brokerage accounts

• Retirement accounts (50% value used due to liquidity limits)

Verification: Provide the two most recent account statements. No seasoning is required for newly opened accounts. Large deposits require a Letter of Explanation (LOE).

You don’t need to transfer funds before closing. You just need to verify that the money is available in your accounts.

Credit and Background Items

We perform a detailed credit and background review for all Massachusetts borrowers and guarantors. Here’s what to expect:

• For 3 credit scores: we use the middle score

• For 2 credit scores: we use the lower score

• No mortgage tradelines or <5 total tradelines: 6 months of interest reserves required

• Bankruptcy: Must be discharged ≥4 years before loan settlement

• Foreclosure: Must be completed ≥4 years before settlement

• Bankruptcy or foreclosure between 4–7 years: minimum 3 months of interest reserves

• Late mortgage payments (past 12 months): LOE required; loan committee discretion

• Past-due balances (mortgage or other credit lines): must be paid before funding

• Involuntary liens or judgments (e.g. taxes, child support): must be cleared before closing

• Pending civil suits: LOE required; subject to review

• Pending criminal cases or financial crime convictions: Not eligible for funding

• Serious or repeat criminal offenses: Ineligible or require LOE and committee review

Interest Reserves

If applicable, interest reserves will be held in escrow and applied before monthly payments are required. These are based on credit score and background:

Financed Interest Payments

To help preserve liquidity — especially for heavy rehabs in cities like Lowell or Lynn — you may be eligible to finance interest payments.

Example:

• Loan amount: $100,000

• Interest rate: 12%

• Loan duration: 9 months

• Accrued interest: $9,000

Instead of monthly payments, this $9,000 is added to your payoff at the end of the loan term.

Property Sourcing Guidelines

When applying for a Massachusetts hard money loan, we require the following depending on deal type:

• For new markets (or unfamiliar towns), a GC agreement or explanation for not needing one

• For recent resale, wholesale, or non-arms-length transactions: full documentation

• For condo conversions or major rehabs: permits or letters from licensed architects/engineers

You must submit purchase contracts, HUD/settlement statements, payoff letters (for refis), your track record, and entity documents (LLC articles, operating agreement, etc.).

Insurance Guidelines for Hard Money Loans

Builders Risk or Fix and Flip insurance is required. These policies protect your investment against damage, liability, and loss — especially important in Massachusetts where weather-related risks vary by region.

💡 Pro Tip: As soon as you take title, install locks, smoke detectors, and cameras to remain compliant with your policy.

Frequently Asked Questions

What states does OfferMarket fund hard money loans?

OfferMarket provides hard money loan funding in nearly every U.S. state — including right here in Massachusetts. We have deep experience supporting investors from Boston and Worcester to Springfield and the Cape. Whether you’re flipping a triple-decker in Dorchester or stabilizing a rental in Pittsfield, our Massachusetts hard money loan program is fully available.

In certain states like Arizona, Utah, and Oregon, where regulatory requirements are different, we serve as a licensed referral and rate shopping service, connecting you with vetted private lenders in our network. However, in Massachusetts, we lend directly, so you’ll be working with us every step of the way — from underwriting to funding.

Can I do more than one hard money loan at a time?

Yes, you absolutely can. In fact, it’s common for our clients in Massachusetts to have multiple projects financed simultaneously. For example, you might have one flip underway in New Bedford while prepping a BRRRR deal in Lynn.

That said, we take a risk-managed approach to multiple loans. If we determine that your available liquidity, project management capacity, or rehab crew bandwidth could be strained, we will discuss this with you. Our goal is to help you scale your real estate business safely — not overload you with obligations that could jeopardize your success.

If you’re managing several properties at once and planning overlapping closings, let us know early. We’ll help you structure the timing and financing to avoid any bottlenecks or cash flow issues.

Are hard money loans considered commercial?

Yes, hard money loans fall under the umbrella of business-purpose or commercial loans. These are not personal loans. They are made to entities — typically Limited Liability Companies (LLCs) or Corporations — that are in the business of real estate investing.

For Massachusetts borrowers, this means:

• You must set up a proper business entity (an LLC is most common) to borrow.

• The loan is not governed by consumer lending laws like a personal mortgage would be.

• All documentation, credit, and underwriting decisions are made on the basis of the business and the guarantors behind it, not a consumer profile.

Whether you’re based in Boston, Framingham, or Northampton, your hard money loan is structured to reflect your business goals — whether that’s flipping properties or holding long-term rentals.

What is the minimum loan amount?

The smallest hard money loan OfferMarket offers is $25,000. This low minimum allows Massachusetts investors to work on smaller deals — such as affordable homes in rural counties like Franklin or Hampden, or partial equity pulls from properties purchased with cash.

If your investment opportunity is small — say a $35,000 off-market home in Fall River — and you only need modest leverage, you’re still eligible under our program.

Which property types are eligible?

Our Massachusetts hard money loan program is designed for non-owner occupied 1–4 unit residential properties. Eligible property types include:

• Single-family homes (SFRs) — whether in suburban areas like Peabody or urban zones like Roxbury

• 2 to 4 unit multifamily properties — common in neighborhoods like Dorchester or Springfield

• Townhomes and rowhouses — frequently found in Cambridge and Somerville

• Warrantable condominiums — including mid-rise and garden-style units in places like Quincy or Worcester

• Planned Unit Developments (PUDs)

We do not fund mixed-use buildings, 5+ unit multifamily, condotels, co-ops, or mobile homes under this program — though separate financing options may be available.

How do you calculate Loan-to-Value (LTV)?

For hard money loans, we most often use Loan-To-After-Repair Value (LTARV) rather than traditional LTV.

• LTARV = (Initial Advance + Construction Holdback) ÷ After Repair Value

• LTV = Initial Advance ÷ As Is Value

The Initial Advance is typically calculated based on the lower of the property’s purchase price or the As Is valuation — which is determined via appraisal or internal valuation. If you're refinancing a property in Holyoke that was purchased for $80,000 and now appraises for $100,000 As Is, we will base your advance on the lower figure unless strong documentation supports otherwise.

What are the credit requirements?

To qualify for a hard money loan in Massachusetts, the minimum required FICO score is 680. However, if your credit score falls between 660 and 679, you may still be eligible on an exception basis.

We evaluate the credit scores of all individuals who will personally guarantee the loan — typically, this includes the managing members or majority owners of the borrowing entity (LLC or Corporation). We do not consider the credit scores of passive members or investors who are not guaranteeing the loan.

Having a score of 720+ can unlock better leverage and lower interest — especially for less experienced borrowers. Our underwriting philosophy is to reward solid credit, strong liquidity, and demonstrated responsibility.

What are the experience requirements?

Experience is not required to obtain a Massachusetts hard money loan. However, investors with a strong track record are eligible for better terms, such as:

• Higher initial advance percentages

• Greater LTARV or LTFC

• Reduced interest reserve requirements

• Eligibility for more complex projects (e.g., extensive rehabs, rural locations)

Experience is evaluated based on the number of verifiable completed rehab projects within the last five years. These projects must be documented through settlement statements, scopes of work, permits, or LLC involvement — simply being a wholesaler or assigning contracts does not count as completed rehab experience.

Does being a wholesaler count towards experience?

No. Being a wholesaler on a transaction does not count toward your official experience score. We require that you were financially responsible for the project’s completion — including managing the rehab budget, contractors, and final resale or refinance.

While wholesaling is a valuable part of the Massachusetts investment ecosystem — especially in off-market deals — it does not demonstrate execution experience, which is critical for underwriting construction risk.

What documentation is required?

When applying for a hard money loan in Massachusetts, OfferMarket’s digital Loan File system ensures a smooth experience. You’ll upload your documentation through a secure portal — designed to minimize friction while maximizing clarity. The specific documents required depend on whether your transaction is a purchase or a refinance.

Documentation Required For Purchase Transactions

Documentation Required For Refinance Transactions

Are there special requirements for loans over $1M?

Yes. Projects that require funding of over $1,000,000 — up to our program ceiling of $2,000,000 — must meet enhanced eligibility standards. These ensure that both the investor and the property meet the higher-risk profile responsibly.

These requirements are especially important in Massachusetts markets where $1M+ loans are more common — such as for historic homes in Newton, luxury units in Back Bay, or large multifamily properties in Brookline.

Glossary of Key Terms

Instant Hard Money Loan Quote

At OfferMarket, we specialize in helping Massachusetts real estate investors move quickly and confidently. Whether you're flipping a Victorian in Somerville or repositioning a rental in Springfield, our Massachusetts hard money loan program is built for you — fast closings, flexible terms, and expert guidance every step of the way.

As a member of the OfferMarket investor platform, you’ll gain access to:

💰 Private lending
☂️ Insurance rate shopping
🏚️ Off market properties
💡 Market insights

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