Looking to build long-term wealth in Massachusetts? Multi-family home financing can be a strategic entry into real estate investment. Whether you’re planning to live in one unit and rent the rest or become a full-time landlord, the right loan can shape your financial future. 

At Cedar Wood Mortgage, we help buyers secure the right investment property loans, with tailored solutions like FHA 203k, duplex financing, and other income-generating mortgage options. 
Start your refinance journey or explore new loan options here. 

Understanding Multi-Family Home Financing 

Multi-family home financing refers to mortgage options available for properties that containtwo to four separate living units. These include duplexes, triplexes, and fourplexes, and can be used as both owner-occupied residences and investment properties. 

 Key Characteristics: 

Anything with 5+ units is classified as commercial property and requires commercial financing. 

 Why Invest in a Multi-Family Property in Massachusetts? 

Massachusetts offers a unique mix of urban demand, strong rental yields, and limited housing inventory, making it a great state for multi-unit property investments. Cities like Boston, Worcester, Lowell, and Springfield are known for strong tenant markets, driven by universities, hospitals, and tech jobs. 

Benefits of Investing in Multi-Family Homes: 

 Landlord Tip: 

Buy near public transport hubs or university campuses to attract long-term renters and maintain high occupancy. 

 Comparing Multi-Family Property Types 

 What Are Your Loan Options? 

Choosing the right loan depends on whether you plan to live in the property and your long-term investment strategy. Below are top options available in Massachusetts, especially through Cedar Wood Mortgage: 

 1. Conventional Loans 

Conventional loans are offered by private lenders and backed by Fannie Mae or Freddie Mac. These are best for borrowers with good credit and sufficient down payments. 

Tip: Buy as an owner-occupant to reduce your down payment and improve loan terms. 

 2. FHA Loans & FHA 203k 

FHA loans, insured by the Federal Housing Administration, allow for low down payments and are ideal for first-time buyers and those with limited savings. 

FHA 203k Example: 
Buy a triplex in Springfield that needs $50,000 in upgrades. With FHA 203k, you can finance both the purchase and the repairs with just one closing. 

 Learn more about FHA options 

 3. VA Loans (For Veterans and Active Duty) 

VA loans are excellent for qualified service members and offer zero down payment, no PMI, and competitive interest rates. 

 4. Portfolio Loans 

These are custom loans held by the lender rather than sold to investors. Great for: 

Portfolio loans are especially useful in Massachusetts for older multi-family properties with non-traditional layouts or zoning. 

 How Rental Income Affects Your Loan Approval 

When applying for investment property loans, lenders often consider the property’s expected rental income to help determine how much you qualify for. 

Rental Income Usage Guidelines: 

Landlord Tips for Massachusetts Buyers 

Becoming a landlord comes with its own challenges. Here’s how to be prepared: 

Must-Know Landlord Tips: 

Bonus: Speak to a mortgage advisor about tax benefits related to mortgage interest, depreciation, and property expenses. 

How Cedar Wood Mortgage Supports Investors 

At Cedar Wood Mortgage, we work with both new and seasoned investors across Massachusetts to help them unlock the full potential of real estate. 

Why Clients Choose Us: 

Refinance or explore your loan optionsnow. 

Frequently Asked Questions (FAQs) 

Can I use rental income from the property to qualify for the loan? 

Yes. Most lenders allow 75% of the projected rental income to be used in your income calculation. 

What’s the minimum down payment for a duplex loan? 

With FHA loans, it can be as low as 3.5% if you live in one unit. For investment-only loans, expect at least 15–25%. 

What is FHA 203k and how does it work?