#3 Private Lending & Conventional Mortgage Advice Contributor
- Lender
- Austin, TX
- 4,508
- Votes |
- 4,888
- Posts
Are Prepayment Penalties Allowed on DSCR Loans in Massachusetts?
#3 Private Lending & Conventional Mortgage Advice Contributor
- Lender
- Austin, TX
Prepayment Penalty Rules for DSCR Loans in Massachusetts
Prepayment Penalties are Fully Allowed with no restrictions for DSCR Loans in Massachusetts. Massachusetts consumer mortgage loan protections, including those found in Mass. Gen. Laws Ch. 183, § 56, apply only to owner-occupied, personal-purpose mortgages. DSCR Loans are made strictly for investment use and fall outside the definition of a "residential mortgage loan" under this statute. As such, DSCR Lenders can typically offer all standard prepayment penalty options such as Descending Prepay Penalties (i.e. “5/4/3/2/1”), Flat Prepay (i.e. 5/5/5/5/5) or other tailored structures in the Bay State.
FULL Complete 2026 Guide To DSCR Loan Prepayment Penalties
More:
Get FREE e-Book: 10 Obstacles for DSCR Loans and How to Overcome Them!
Apply for a DSCR Loan: Web App
Get "The Book on DSCR Loans" on Amazon! Short-Term $2.99 Kindle Sale
- Robin Simon
- [email protected]
