HELOC Loans in Massachusetts

Home Equity Line of Credit (HELOC)

Massachusetts homeowners can access flexible financing through a HELOC (home equity line of credit), using their property’s value to secure ongoing credit. Whether you're upgrading in Boston, paying tuition in Worcester, or consolidating debt in Springfield, a HELOC allows you to draw funds as needed during a multi-year draw period. These revolving lines typically feature variable interest rates. Most lenders in Massachusetts require 15%–20% home equity and a credit score of 620 or higher. For lump-sum borrowing and predictable payments, home equity loans are a strong alternative. Massachusetts borrowers can compare offers from credit unions, community banks, and digital lenders with programs tailored to the region.

GET A QUOTE

How to qualify

To obtain a quote, we will need the following information:

Property Value and

 Purchase Price


Down Payment

Amount


Credit Score

 Asset Types

  • Single Family Homes
  • Townhomes
  • Condos
  • 2 - 4 Units (Duplex, Triplex, Quadplex)
  • Multi-Family: 5 - 8 Units
  • Mixed-Use: 2 - 8 Units
  • Multi-Family: 9+ Unit


Loan Terms

  • Loan Sizes: $100k up to $3.5 Million (Larger loan sizes available on a case by case basis)
  • Purchase LTV: Up to 85%
  • Rate & Term Refinance LTV: Up to 80% 
  • Cash Out Refinance LTV: Up to 80%
  • Amortization: 30 Year % 40 Year Amortization Options Available
  • Term Lengths: 5/6 ARMs, 7/6 ARMs, 10 Year Interest Only, 30 Year Fixed & 40 Year Fixed
  • Floor Rate: 5.50% (subject to change daily due to market volatility)
  • Full Recourse with personal guarantee required for all borrowers with majority ownership (typically 20%+ or 25%+ if closing in an Entity)
  • DSCR Requirement: 1.00x or greater depending on loan size and property type. Sub-1.00x DSCR and NO DSCR options available.
  • Vesting: Lending to Individuals, LLCs, and Corporations. Trusts Allowable on a Case by Case Basis.
  • Average Time to Close: 14 to 35 days

Wondering if you qualify for investment property financing in your area?


We offer lending services in all 50 states!

FIND OUT MORE

Frequently Asked Questions

What is a HELOC and how does it differ from a home equity loan?

A HELOC in Massachusetts is a revolving credit line backed by your home equity. It lets you borrow as needed, repay, and borrow again during the draw period. A home equity loan provides a lump sum with fixed interest and monthly payments.HELOCs are ideal for phased or recurring expenses, while home equity loans offer predictability for one-time needs. Your choice depends on your borrowing goals, repayment preference, and budget.

How do HELOC rates work and what affects the interest rate?

HELOC rates in Massachusetts are usually variable and tied to the prime rate. Your actual rate depends on credit score, income, property value, and your lender’s underwriting policies. Local banks and credit unions may offer promotional intro rates, fixed-rate options, or discounts for autopay enrollment. Comparing offers helps you secure better terms and avoid hidden fees.

Can I qualify for a home equity loan in Massachusetts with low credit?

Yes, qualifying for a home equity loan in Massachusetts with low credit is possible if you have strong equity and stable income. While many lenders prefer credit scores of 620 or higher, some may work with scores in the 580–620 range.Expect higher interest rates and additional documentation. Massachusetts credit unions and local banks may offer more flexibility than national lenders, especially for long-time customers.

How much equity do I need in my home to get a HELOC?

In Massachusetts, most lenders require 15%–20% home equity to approve a HELOC. That means your total mortgage balance should be no more than 80%–85% of your home’s appraised value.Equity levels may be higher in cities like Cambridge or Newton due to strong property appreciation. Lenders will also evaluate your income, credit score, and debt obligations before setting a credit limit.

Are home equity loans in Massachusetts better for large expenses?

Yes, home equity loans in Massachusetts are ideal for large, one-time expenses like major renovations, medical bills, or debt consolidation. These loans offer a lump sum with fixed interest rates and predictable repayment terms.If your expenses will be spread out or are variable, a HELOC may provide more flexibility. Choose based on the timing, scale, and frequency of your financial needs.

What are typical equity rates and loan terms in Massachusetts?

In Massachusetts, HELOC APRs usually range from 7% to 10%, depending on credit profile, home value, and lender. HELOCs generally offer a 10-year draw period and a 10- to 20-year repayment window.Home equity loans come with fixed interest rates and repayment terms between 5 and 30 years. Massachusetts lenders may also offer closing cost waivers, rate locks, or member discounts through credit unions. Compare multiple quotes before making a decision.

Looking outside Massachusetts? Explore HELOC programs in Rhode Island , Connecticut , New Hampshire , and Vermont...