Arkansas Second Home Loans and Mortgage Solutions

Financing Your Dream Second Home

Whether you're buying a lakeside cabin, mountain retreat, or a weekend escape in Arkansas, BNB Lending offers second home loans tailored to part-time use and occasional rental income. We finance second homes and vacation properties throughout Arkansas with fast approvals and flexible terms. Our team works with you to ensure your property meets all lending and local use requirements—so you can enjoy your home while building long-term value.

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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 a second home loan, and how does Arkansas define second homes?

Arkansas second home loans follow national lending guidelines. The property must be a one-unit residence, livable year-round, and used personally by the borrower for part of the year. BNB Lending typically requires a 10–20% down payment, a qualifying credit score, and documented income. Arkansas does not impose additional distance or occupancy rules beyond federal standards. If your planned rental use is occasional, the property may still qualify as a second home. We’ll review your Arkansas property and usage plans to match you with the right loan structure from the start.

How do short-term rental rules affect second home loans in Arkansas?

While Arkansas has no statewide short-term rental policy, cities and towns may regulate STRs through licenses, taxes, or zoning ordinances. If you plan to rent your property occasionally, it may still qualify for second home financing. However, frequent rental activity may lead to reclassification as an investment property. At BNB Lending, we assess your Arkansas property’s location and usage intent to help you stay compliant with local rules while maximizing loan benefits. Our team helps you understand how local regulations could impact the financing terms for your second home.

Do second homes in Arkansas qualify for property tax exemptions?

Second homes in Arkansas do not benefit from the state’s homestead exemptions, which are reserved for primary residences. Real estate—including vacation homes and STRs—is assessed at 20% of its full market value. That means your Arkansas second home will be taxed at the full residential rate, potentially increasing annual costs. If you rent the property, you may also be subject to local lodging taxes in high-traffic areas. At BNB Lending, we help you understand how Arkansas tax classifications affect your financial planning and total ownership costs.

Can I deduct mortgage interest on a second home in Arkansas?

Mortgage interest on a second home in Arkansas is not deductible at the state level because Arkansas does not offer an income tax break for this category. However, you may qualify for a federal deduction if you itemize. The IRS allows deductions on interest for up to two homes, including vacation properties, within current loan limits. If you rent your property part of the year, a portion of the interest may be claimed as a rental expense. BNB Lending structures Arkansas second home loans with your financial and tax planning in mind.

Are there second home loan programs in Arkansas?

Arkansas does not offer state-run loan programs or grants for second home purchases. The Arkansas Development Finance Authority’s HOME program supports first-time buyers and primary residences only. At BNB Lending, we provide flexible second home loan options throughout Arkansas—from the Ozarks to Hot Springs. We help part-time residents and vacation property buyers access competitive rates and fast closings, even without state incentives. Our loans are ideal for buyers seeking a personal retreat or part-time residence that may also generate income.

What types of properties qualify for Arkansas second home loans?

Eligible second homes in Arkansas include single-family homes, cabins, condos, and small multi-unit properties where the borrower occupies one unit part-time. The home must be suitable for year-round living and not used primarily as a rental. In tourist-heavy areas like Eureka Springs or Greers Ferry, local zoning or HOA rules may limit STR use. BNB Lending evaluates your Arkansas property’s compliance and suitability to ensure it qualifies for second home loan financing. We tailor the loan structure to meet your lifestyle and income goals.

Who should consider second home financing in Arkansas instead of an investment loan?

Second home loans are ideal for part-time residents, remote workers, and buyers who plan to enjoy personal use with limited rental activity. If your Arkansas home will not be rented full-time and meets standard occupancy rules, a second home loan offers better rates and down payment terms than an investment loan. Keep in mind, the loan must be in your name—not an LLC—to qualify under second home guidelines. At BNB Lending, we build Arkansas loan structures that support flexibility and long-term returns.

Thinking beyond Arkansas? Explore Airbnb loans and second home opportunities in nearby states like Missouri or Tennessee to diversify your portfolio.