Arizona Second Home Loans and Mortgage Solutions

Financing Your Dream Second Home

Looking to purchase a vacation property, mountain home, or second residence in Arizona? Our second home loan options are designed for part-time use with the flexibility to earn short-term rental income. BNB Lending finances Arizona vacation homes, second residences, and seasonal properties. We offer competitive rates and fast approvals, helping you secure your next retreat or scale your real estate portfolio with ease.

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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!

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Frequently Asked Questions

What are the requirements for an Arizona second home loan, and how does Arizona define second homes?

To qualify for a second home loan in Arizona, the property must be a one-unit home suitable for year-round use and personally occupied by the borrower for part of the year. You’ll need a 10–20% down payment, a credit score of 660 or higher, and sufficient income documentation. Arizona follows federal lending guidelines—there are no special state rules. However, if you intend to rent the property more than occasionally, it may be reclassified as an investment property. BNB Lending will help you structure the loan based on your intended use.

Do Arizona cities regulate short-term rentals, and could that affect your Arizona mortgage?

Yes. While Arizona state law (A.R.S. § 9-500.39) allows short-term rentals, cities like Scottsdale and Sedona have implemented restrictions including licensing, noise rules, and occupancy limits. When financing a second home, BNB Lending will ask about your intended rental use to determine eligibility. If your Arizona property will only be rented occasionally, you may still qualify for second home loans —just not if it’s run like a full-time business.

How are property taxes and exemptions handled for second homes in Arizona?

Arizona second homes do not qualify for primary residence exemptions like the state’s homeowner rebate. As a result, you'll pay the full residential property tax rate. In some locations, such as Sedona or Flagstaff, short-term rentals may also trigger local taxes. BNB Lending reviews property classification and intended use to help you plan for all taxes tied to your Arizona second home.

Can you deduct mortgage interest on an Arizona second home?

Mortgage interest on an Arizona second home may be deductible at the federal level

Are there Arizona loan programs for second homes?

While Arizona Housing programs focus on primary residences, BNB Lending offers second home loans across the state. We serve Arizona investors looking to purchase vacation homes or STR-ready properties. With no state-run second home incentives, our lending platform provides flexibility and fast closings that give you a competitive edge. Whether you're buying in Phoenix, Sedona, or Flagstaff, we'll help you close quickly and start earning from your Arizona second home.

What kinds of properties qualify for second home loans in Arizona?

BNB Lending offers second home loans for Arizona properties including single-family homes, townhomes, condos, and 2-4 unit residences. The property must be livable year-round and used for part-time occupancy, but occasional short-term rental use is acceptable. We evaluate Arizona zoning and HOA rules to ensure your second home aligns with your investment strategy. Our team will help you navigate local nuances and secure financing that supports your Arizona rental goals.

Who should consider second home financing in Arizona instead of investment loans?

These loans are perfect for self-employed individuals, LLCs, and investors managing multiple properties. If you're planning to use your Arizona home for part-time living and occasional STR income, a second home loan offers better terms than full investment financing. BNB Lending structures Arizona second home loans to give you flexibility, preserve cash flow, and scale your real estate business with confidence.

Thinking beyond Arizona? Explore Airbnb loans and second home options in neighboring states like New Mexico or California to expand your real estate strategy.