If you’re a fan of baseball, you’ll love investing in the home state of the Boston Red Sox. Known for their passionate fans and iconic Fenway Park, the Red Sox are a symbol of Massachusetts pride. Massachusetts is also rich in history, as it was home to America's earliest settlers. But this state isn’t just about sports or historic landmarks – it also offers real estate opportunities for international investors.
With a strong economy, top universities, the best hospitals in the world, and beautiful places like Cape Cod and Salem, it’s easy to see why so many people are drawn to this state. In this guide, you’ll learn the key details about investing in Massachusetts real estate, including mortgage options and property types, to help you explore everything this market has to offer.
We are providing the following discussion to you for informational purposes only. All investments, including real estate, involve risk, and we encourage you to invest carefully. The information in this article is not intended to replace or serve as a substitute for any legal, real estate, tax, or other professional advice or service. You should consult with a professional in the respective legal, tax, accounting, real estate, or other professional area before making any decisions or entering into any contracts relating to a rental property.
DSCR (debt-service-coverage-ratio) loans offer a straightforward financing solution for foreign nationals interested in income-producing properties in Massachusetts.
What is a DSCR loan?
Rather than relying on personal income verification, these loans focus on the property’s ability to generate cash flow.
DSCR loans fall under non-qualified mortgages (non-QM) and cater to foreign investors looking to buy U.S. real estate without planning to live in the property. These loans help non-U.S. residents fulfill the financial and legal requirements that are needed to purchase property in sought-after locations like Massachusetts. In this way, DSCR loans create opportunities to invest in areas where rental properties cash flow.
DSCR loans provide a potential solution to simplify U.S. real estate investing. Here are some of the key benefits:
With DSCR loans, international investors can quickly and efficiently grow their real estate portfolios. That Massachusetts property you’re eyeing could be yours in just weeks.
Lenders review applications using several key factors. Understanding these can help make the process easier and improve your chances of approval.1
Most lenders: U.S. lenders usually focus on income earned in the U.S. because it is easier to check. If your income comes from another country, you will need extra documents, such as translated bank statements, proof of salary, and U.S. tax returns if you have them. Even with all the required paperwork, delays or denials are common because many lenders are unfamiliar with international financial systems.
Waltz: We understand that income can come from many sources. Whether your earnings are from the U.S. or another country, we look at a range of documents, including local bank statements, pay slips from your employer, and rental income from properties you own. We also consider the rental income the property you are buying might earn, giving you a fairer evaluation.
Most lenders: Many lenders require foreign buyers to pay 30–50% of the property’s price as a down payment. Some also ask for extra savings to cover possible costs, like repairs or vacant months, which adds to the upfront expenses.
Waltz: We offer more flexible terms. While a 30% down payment is common, some qualified buyers can pay as little as 25%. We also adjust reserve fund requirements to match your financial situation and the property’s potential rental income.
Most lenders: Most lenders require U.S. identification, such as a passport and visa. For investment properties, you may also need to create a U.S.-based LLC (Limited Liability Company), which involves setting up the LLC and providing its operating agreement.
Waltz: We simplify this step for international buyers. You only need your passport for identification. If you need an LLC, our Investor Toolkit can help you set it up quickly and get an EIN (Employer Identification Number) within minutes.
Most lenders: Lenders in the U.S. rely on U.S.-based credit scores to approve loans. If you do not have a U.S. credit history, it can be very hard to get approved, even if you have good credit in your home country.
Waltz: We understand how difficult it can be to build a U.S. credit score. That’s why we evaluate your home credit score, among other things, so we can fairly assess your financial reliability without penalizing you for not having a U.S. credit score.
Find out how international investors have benefited from working with Waltz.
Massachusetts’s real estate market offers a range of opportunities to suit different investment strategies. The right property for you will depend on your objectives and the requirements of your lender.
Here are a few property types worth exploring:
Massachusetts can offer many advantages to foreigners looking to invest in American real estate. Here are a few compelling reasons to consider Massachusetts:
As the capital city, Boston offers a vibrant real estate market with diverse investment opportunities. The city’s strong job market, anchored by major institutions like Harvard, MIT, and numerous tech companies, ensures a steady demand for rental housing. Property values have consistently risen due to strong demand and limited supply. Even better, the typical rent prices in Boston are $3,500, which is considerably higher than the national average of $1,748.
Massachusetts’s second-largest city, Worcester is undergoing a major transformation, with $161 million worth of revitalization projects breathing new life into its downtown area. The median sales price for a single-family house in Worcester is approximately $415,000, up 17.7% year-over-year.
Amherst is another great Massachusetts area with plenty of potential. UMass Amherst, with around 23,000 undergraduate students, creates a steady demand for off-campus housing. Not to mention, the greater real estate market in Amherst has remained strong over the years, with median property prices around $503,000. Plus, Amherst's vibrant cultural scene and strong local economy make it an appealing place to live, which can help sustain property demand.
Home to prestigious institutions like Harvard and MIT, Cambridge boasts a highly educated resident base. Over 79% of residents have a bachelor’s or postgraduate degree, compared to the national average of 54.3%. As such, Cambridge also has a wealthier tax base than the average American city. But Cambridge isn’t all work and no play – the city has a cultural scene of its own and all of the fun found in Boston, which is only 3 miles away.
Cape Cod is a unique vacation destination. The area is made up of 15 towns that each offer its own charm, from the historic streets of Sandwich (settled in 1637), to Provincetown (the Pilgrims' original landing spot), and classic fishing towns like Chatham. With stunning coastlines and a relaxed lifestyle, Cape Cod attracts visitors from all over the United States. Ideal for vacation rentals and seasonal properties, Cape Cod presents a more affordable alternative to Nantucket, with property values steadily rising. For example, the median sales price of single-family houses in Barnstable County climbed from $433,000 in 2019 to $730,000 in 2023.
Get an Investment Property Loan in Massachusetts.
It may seem like there’s no downside to buying real estate in Massachusetts, but as with every other state, this idyllic area has particular considerations:
Refinancing your Massachusetts investment property involves replacing your existing mortgage with a new one. This process allows you to tap into the equity of your current property to fund new real estate ventures.
Waltz provides comprehensive and efficient solutions tailored to help Massachusetts real estate investors navigate this process smoothly. With our expertise, we ensure that you can confidently and effectively enhance your Massachusetts real estate investment strategy. The refinancing process for foreign nationals typically includes:
Rate-and-term refinancing allows you to modify the terms of your current mortgage—potentially securing more favorable terms on your mortgage. However, it's important to remember that even if you refinance at a lower interest rate, your overall finance charges could be higher throughout the duration of the loan.
Cash-out refinancing allows foreign investors in Massachusetts to access their property’s equity and borrow more than the current mortgage balance, based on the original equity.
For those interested in Massachusetts real estate, the additional funds can be used for a variety of purposes, such as property renovations, debt consolidation, or making a down payment on another property. By recycling the same cash, investors have the flexibility to scale their portfolios. This process provides cash at closing, expanding investment opportunities while utilizing DSCR loan options available in Massachusetts.
With vibrant cities like Boston and the coastal charm of Cape Cod, Massachusetts is a diverse place to invest in real estate. Getting a DSCR mortgage with Waltz makes owning your next property simpler than you might expect. Just follow these steps:
1. Find a profitable investment
Consider your goals – whether you're aiming for steady rental income, a vacation spot that also doubles as a short-term rental, or a future flip – and find a property that fits both your budget and ideal outcome.
2. Gather essential documents
You'll need a valid passport, proof of income (such as pay stubs or bank statements), and details about the property you're interested in. Having everything organized will make the process smoother and faster.
3. Select a lender experienced with foreign nationals
Partner with a lender who understands the needs of international buyers, like Waltz. They’ll provide tailored guidance to help you navigate the mortgage process.
4. Set up an LLC and U.S. bank account
For investment properties, you’ll need a U.S.-based LLC and a bank account for financial transactions.2 This process is straightforward, and Waltz can handle your LLC and Employer Identification Number (EIN) setup efficiently.
5. Submit your loan application
Once you have your documents in order, submit your loan application. Ensure all paperwork is accurate and complete to speed up the process.
6. Perform due diligence
Before finalizing the deal, take the time to inspect the property. Confirm its condition, ensure the value matches the loan, and double-check the terms to make sure everything aligns with your expectations.
7. Complete the purchase process
This is the moment of truth! After everything checks out, sign the documents, transfer the funds, and officially complete the purchase.
