Hard Money Loans for Short-Term Rentals in Massachusetts

Frequently Asked Questions

What are hard money loans and how do they work for real estate investors?

Hard money loans are short-term financing tools based on the value of the real estate rather than borrower qualifications. Investors in Massachusetts use them to fund flips, refinance investment properties, or acquire short-term rentals that may not qualify for traditional mortgages. With loan terms ranging from 6 to 36 months, interest-only payments, and fast closings, hard money offers a solution when timing matters most. Because underwriting is based on the asset and not personal income, these loans let investors act decisively in fast-moving markets.

When should an investor consider using a hard money loan instead of a conventional loan?

Hard money loans are ideal when traditional financing can’t meet the needs of your timeline or project type. In Massachusetts, investors use them to fund distressed properties, secure fast closes, or purchase through LLCs. They're also a strong option when income verification or creditworthiness is an obstacle. Since the loan is based on the property’s value and exit strategy, you can close quickly and move forward with fewer requirements. For investors working under pressure, hard money delivers the responsiveness banks can't match.

What makes hard money different from other types of financing?

Hard money loans differ from conventional financing because they’re structured for investment speed and flexibility. Banks scrutinize your credit history, income, and debt-to-income ratio. Hard money lenders look at the property and your plan. For Massachusetts real estate investors, this difference can be crucial when trying to close quickly or fund unique properties. Although interest rates are higher, you gain access to capital in a fraction of the time. That tradeoff is often well worth it when timing is tied directly to return on investment.

What are the typical loan terms for a hard money loan?

Massachusetts hard money loans typically come with 6 to 36-month terms and interest-only payments. Most lenders offer up to 85% LTV on purchases and up to 80% for refinances. These loans usually include origination fees and may require reserves depending on deal structure and borrower experience. Rates are higher than traditional mortgages, but you can close in as little as 3 to 10 days. The terms are designed for short-term investment strategies where fast capital is more important than long-term interest savings.

How quickly can a hard money lender close a deal?

Hard money lenders in Massachusetts can often close deals in just 3 to 10 business days. That’s significantly faster than conventional loans, which typically require 30+ days of underwriting. Since approval is based on property value and exit strategy—not income or credit—you avoid the red tape that slows down most deals. In a market where timing matters, Massachusetts investors use hard money loans to outmaneuver slower buyers and secure the properties that others miss.

Can I get a hard money loan in Massachusetts with poor credit or no income documentation?

Yes. In Massachusetts, investors can secure hard money loans without strong credit or traditional income documentation. These asset-based loans focus on the property and your ability to repay through a defined exit strategy. While the state enforces lending regulations, most business-purpose loans are exempt from consumer-focused rules. Still, it’s important to work with a reputable, licensed lender who provides full transparency on rates, terms, and legal compliance to ensure a smooth, safe transaction.

Explore hard money loans and other STR loans in neighboring states like Rhode Island and New Hampshire to extend your footprint beyond Massachusetts.