Massachusetts Construction Lenders for Residential Properties
Are you building a residential investment property in Massachusetts? On this page you'll find a list of private construction lenders for ground-up projects throughout Massachusetts's urban areas. The maximum loan-to-completed value (LTCV) for most lenders in Massachusetts is 70%. You typically need to contribute 20%-25% of the project costs and have some cash reserves. Development experience is almost always required. Most lenders will require the project to be fully entitled and shovel ready. A small percentage of lenders will consider land acquisition and/or horizontal financing. The lenders listed here can fund a single home build, or a development with multiple homes. We have a separate page for lenders that offer ground-up construction financing for commercial properties.Searching...
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i Fund Cities
Great F#*%ing Loans, Built By Investors For Investors
LendingOne
Rental, Fix & Flip, New Construction, Fix to Rent, SFR Portfolio Loans Nationwide
ZINC Financial
Direct Lender for Real Estate Investors. Established in 2006.
Lima One Capital
The Nation's Premier Lender for Real Estate Investors
First Boston Capital Partners
Direct Lender for Boston Real Estate Investors
Cardinal Capital Group
New England Direct Private Money Lender
RCN Capital
Direct Lender for Residential Fix & Flip, Long-Term Rental, Bridge Loans
Park Place Finance
Nationwide Direct Private Lender for Residential Real Estate Investors
RD Advisors
Developer Financing, Fast | Direct Lender for Property Investors
Rehab Financial Group
100% Financing for Rehab, Flip and Construction Projects - NO DOWN PAYMENT!
Old North Capital Fund, LLC
True asset-based financing | No credit check, No appraisals, No prepay
HouseMax Funding
Hard Money Loans to Fund Your Next Big Project
Center Street Lending
Smarter Loans for Residential Investors
3 Local Massachusetts Construction Lenders
Here are the residential construction lenders on our platform that are “local” lenders, based in the Boston metro area…
- First Boston Capital Partners
Based in Quincy, First Boston is an affiliate of The Grossman Companies which has been financing Boston home builders for over 60 years. For ground-up construction projects, they lend up to 87.50% of the total project costs with a 75% maximum loan-to-after-repair value. Builders must have completed at least 3 construction projects. In addition to Boston, they consider projects in Nantucket and Cape Cod. - RD Advisors
Based in South Boston, RD Advisors manages a debt fund which offers construction loans to real estate investors in the Greater Boston metro area. For ground-up projects, they typically fund up to 65% of the land purchase price and 90% of the vertical costs, with a 70% maximum loan-to-completed value. Builders must have completed at least 3 construction projects. - Cardinal Capital Group
Based in the South End of Boston, Cardinal Capital Group ranks among the top five highest-volume private lenders in Massachusetts, according to Forecasa. For ground-up projects, they typically fund up to 75% of the land purchase price and 90% of the vertical costs, with a 70% maximum loan-to-completed value. Â Borrowers must have completed at least ground-up project. In addition to Massachusetts, they lend in the rest of New England, plus a few other states.
Boston Construction Insights from a Local Lender
We interviewed Jason Denoncourt from First Boston Capital Partners to learn about ground-up construction lending in the greater Boston metro area. Watch the video below, or click here to read the content.
Funded Construction Loans in Massachusetts
Private Construction Loan for SFR Teardown and New Build in Lexington, Massachusetts
$2,850,000
First Boston Capital Partners, a direct private lender, funded a $2,850,000 1st lien position private construction loan for a single-family home in Lexington, MA. We funded 100% of the $1,700,000 construction budget and 50% of the $1,250,000 purchase price, while the Borrower contributed 50% cash to the purchase at closing. The after-repair value was estimated at $3,900,000 so our loan-to-after-repair value was 75%. The Borrower seized an off-market deal brought by a broker. The catch? They needed to provide a cash offer with the absolute certainty of funding by the week’s end. The same day we received the loan request, we reviewed the construction budget, visited the site for an on-ground assessment, and drove by all the comparable properties in the area. We were able to fund the loan within a few days to meet the deadline. The project involved tearing down the structure and building a new home on the 0.71-acre lot. The home will be put on the market for sale upon construction completion. We set up an interest reserve, so monthly payments were not required during the loan term. The loan term was set at 18 months. This SFR ground-up construction loan was funded in January 2024.Â
