Seeking Mortgage Options for Fourth Property in Boston/Cambridge Area

Boston, Massachusetts
Mortgage Brokers & Lenders
2yFollow

Seeking Mortgage Options for Fourth Property in Boston/Cambridge Area

Tomas Maira-Litran
Member since 2024 · 5 posts · 4 votes

I'm an expat with a good salary paid in euros, already owning three properties in the Boston area and holding two mortgages. I'm looking to finance a fourth property. I have no W-2 income and have been advised to consider DSCR no-ratio loans, but current rates are in the low 9% range, which seems high. Are there any other mortgage options available for someone in my situation?

2Reply
41 views

Most Popular Reply

River SavaPro Member
Lender · USA · Member since 2022 · 1k+ posts · 1k+ votes
2y

Hi Tomas,


DSCR would be a great option considering they are based primarily off of the property not the borrower. No DTI/income evaluation/W-2 requirement. Happy to chat with you further about this and send you some recommendations. Also, I grew up right outside of Boston so I'd love to connect regardless.

[email protected]
2Reply
See this reply in the discussion

10 Replies

Jump to latestLatest
  • Andrew FreedBusiness Member
    Investor · Worcester, MA · Member since 2020 · 1k+ posts · 1k+ votes
    2y

    @Tomas Maira-Litran - Are these residential properties or commercial properties? If commercial properties, you can seek loans from small local credit unions and banks that base it off of the debt service coverage ratio and regularly provide loans in the 7s.

    You can also seek commercial loans on residential properties as well. Winterhill bank is one in your area that offers commercial loans on residential properties. GFA in Gardner might be another small local bank that offers this type of product. 

    Your other alternative is partnering with someone who has the W-2 / who is loanable and they can make up your lack of W-2 / income. Good luck! 

    [email protected]781-964-3200Podcast Guest on Show 69 Doors from ONE Real Estate Deal Using Other People’s Money
    1Reply
  • Tomas Maira-Litran
    OP
    Member since 2024 · 5 posts · 4 votes
    2y

    Thanks, Andrew, for your ideas. Yes, they are residential properties.

    1Reply
  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    2y
    Quote from @Tomas Maira-Litran:

    I'm an expat with a good salary paid in euros, already owning three properties in the Boston area and holding two mortgages. I'm looking to finance a fourth property. I have no W-2 income and have been advised to consider DSCR no-ratio loans, but current rates are in the low 9% range, which seems high. Are there any other mortgage options available for someone in my situation?


    DSCR Rates should be available much lower than that - most are in the 7-8% range right now, if you are being quoted in the 9s, probably just need to look for some other DSCR options

    [email protected]
    Harpoon Capital514 Reviews
    WebsiteView Page
    0Reply
  • River SavaPro Member
    Lender · USA · Member since 2022 · 1k+ posts · 1k+ votes
    2y

    Hi Tomas,


    DSCR would be a great option considering they are based primarily off of the property not the borrower. No DTI/income evaluation/W-2 requirement. Happy to chat with you further about this and send you some recommendations. Also, I grew up right outside of Boston so I'd love to connect regardless.

    [email protected]
    2Reply
  • Tomas Maira-Litran
    OP
    Member since 2024 · 5 posts · 4 votes
    2y

    Thanks Robin, the low 9% interest rate on the loan I assumed was because it's is a no-ratio DSCR loan, which carries a higher rate than standard DSCR loans with a 1.25 ratio. In any case as you suggested I will look into other lenders.

    0Reply
  • Lien VuongBusiness Member
    Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
    2y

    Commercial is your best bet (rates are actually closer to 7-8%) or you can have a loan against your other assets such as brokerage, retire accounts, or a group LOC for your other properties. In those instances you can purchase the new property in 'cash' position and do not have to get an additional mortgage.

    [email protected]
    The Elle Group5153 Reviews
    WebsiteView Page
    1Reply
  • Jared RineBusiness Member
    Lender · Sacramento, CA · Member since 2009 · 1k+ posts · 277 votes
    2y

    @Tomas Maira-Litran...you mentioned in a response post something that stood out. Why do these have to be no ratio DSCR? Do the numbers just not work at all? You shouldn't have to be held to a 1.25 ratio to get 7-8% rates. AS long as its over 1.00 and if it's not, there still might be ways to mitigate. Maybe it's just finding the right lender. PM if you need. Thanks

    Jared Rine United Lending Partners53 Reviews
    View Page
    1Reply
  • Stephanie P.Pro Member
    Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
    2y
    Quote from @Tomas Maira-Litran:

    I'm an expat with a good salary paid in euros, already owning three properties in the Boston area and holding two mortgages. I'm looking to finance a fourth property. I have no W-2 income and have been advised to consider DSCR no-ratio loans, but current rates are in the low 9% range, which seems high. Are there any other mortgage options available for someone in my situation?

    Low 9's is not bad for a no ratio DSCR loan for a foreign investor.  
    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free