Massachusetts Private Money Lending:
Licensing, Compliance & Documents

By Anthony Geraci, Managing Partner & CEO, Geraci LLP  |  February 2026

Massachusetts has an active private money lending market centered on the Boston metropolitan area, with additional activity in Worcester, Springfield, and Cape Cod. High property values in Greater Boston drive large loan amounts. Massachusetts's unique combination of using mortgages but allowing non-judicial foreclosure makes it more lender-friendly than other Northeastern states for enforcement.

This guide covers the essential licensing, usury, foreclosure, and document requirements for private money lenders originating loans in Massachusetts.

Related: Usury Laws by State  |  Deed of Trust vs. Mortgage Guide  |  How to Lend in Multiple States

Licensing Requirements

Massachusetts requires a Mortgage Lender license from the Division of Banks for consumer mortgage lending. Private money lenders making business-purpose loans should verify their licensing requirements, as Massachusetts has taken an expansive view of lending regulation in some circumstances.

Key Compliance Considerations

Massachusetts is unusual among mortgage states in that it allows non-judicial foreclosure through a statutory power of sale included in the mortgage. This is a significant advantage over other Northeastern states like New York and New Jersey, which require judicial foreclosure.

The non-judicial foreclosure process requires publication of notice for three consecutive weeks, with the sale occurring at least 14 days after the last publication. A 14-day notice to the borrower is also required.

Massachusetts has the Soldier's and Sailor's Civil Relief Act provisions that can delay foreclosure if the borrower is an active-duty service member.

The state imposes transfer taxes and recording fees on mortgages and deeds that affect transaction costs.

Document Requirements for Massachusetts Private Money Loans

Massachusetts private money loans require a mortgage as the primary security instrument, along with a promissory note, loan agreement, personal guaranty (for entity borrowers), and state-specific disclosures and compliance riders. For fix-and-flip and construction loans, draw agreements, scope of work exhibits, and completion guarantees are also required.

Automate Loan Docs generates complete, Massachusetts-specific document packages that comply with all applicable state requirements. Every template is drafted by the attorneys at Geraci LLP, whose team has over 30 years of combined experience advising private money lenders across all 50 states — including extensive experience with Massachusetts lending transactions.