California Second Home Loans and Mortgage Solutions

Financing Your Dream Second Home

Whether you're purchasing a coastal escape, mountain cabin, or wine country retreat, BNB Lending offers second home loans throughout California. We provide fast approvals and flexible financing for part-time residences in California’s most desirable destinations. Enjoy occasional rental income or quiet getaways while building long-term equity. Our team helps you navigate local laws, lending rules, and ownership goals with confidence.

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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 California define second homes?

Second home loans in California follow conventional lending rules. The property must be a one-unit residence, available year-round, and personally used by the borrower part of the year. BNB Lending typically requires a 10–20% down payment, strong credit, and income verification. The state doesn’t impose additional occupancy or distance restrictions. Occasional rental use is allowed, but heavy short-term rental activity could shift the loan type to investment. We’ll help you decide which option aligns best with your intended use and long-term goals.

How do short-term rental rules affect financing in California?

State laws and local ordinances regulate short-term rentals. Cities like Los Angeles and San Diego require registration, limit rental days, and enforce zoning restrictions. These local rules can impact how a second home is used and classified. At BNB Lending, we review your rental plans and the location of your property to ensure the financing matches local STR requirements. If the home is rented occasionally and still used personally, it may qualify for second home financing. Our team will walk you through every compliance step.

Do second homes in California receive special property tax benefits?

California’s Proposition 13 caps annual property tax increases at 2%, even for second homes. However, vacation homes do not qualify for base-year value transfers under Proposition 19, which are reserved for primary residences. This can result in higher reassessed values when transferring or inheriting the home. There are also no homestead exemptions for second homes. At BNB Lending, we help you understand how property taxes will affect your ownership costs in California. Reviewing this early ensures your second home financing supports long-term affordability.

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

Mortgage interest on a second home may qualify for a federal deduction if you itemize and the loan stays within IRS limits. California does not offer an additional state-level deduction for second homes. If the property is also used for short-term rental income, some of the interest may be deductible as a business expense. At BNB Lending, we structure your second home loan with tax efficiency in mind and recommend consulting a CPA for personalized guidance based on federal and California-specific tax laws.

Are there state programs in California for second home buyers?

There are no California state loan programs or grants available for second home buyers. Organizations like CalHFA offer support for primary residences and first-time buyers, not vacation or seasonal properties. That’s why BNB Lending offers flexible private financing across the state, including high-demand markets like Palm Springs, Santa Barbara, and Lake Tahoe. We provide quick closings and custom loan structures to support personal use and occasional rental income. Our goal is to help buyers take action without relying on government-backed assistance.

What types of properties qualify for a second home loan?

Second home loans can be used for single-family homes, condos, townhomes, and 2–4 unit properties where one unit is used part-time by the borrower. The property must be livable year-round and not used full-time as a rental. HOA bylaws and city zoning in some California communities may restrict short-term rentals or second-home occupancy. BNB Lending helps you determine if the property aligns with lender guidelines and local regulations so your financing process stays smooth and compliant.

Who should consider second home financing over an investment loan?

If you're planning to use the property personally for part of the year and only rent it occasionally, a second home loan offers better rates and lower down payments than an investment mortgage. These loans must be titled in your name—not an LLC. At BNB Lending, we help seasonal residents, retirees, and remote workers across California take advantage of flexible second home financing. It’s a smart solution for balancing lifestyle and income potential while keeping long-term costs manageable.

Thinking beyond California? Explore Airbnb loans and second home opportunities in nearby states like Arizona or Nevada to diversify your portfolio.