Connecticut Second Home Loans and Mortgage Solutions

Financing Your Dream Second Home

Thinking of a waterfront retreat or weekend cottage in Connecticut? BNB Lending offers second home loans across the state—from shoreline escapes to countryside retreats. Our second home financing options are designed for part-time occupancy and occasional rental use. With competitive rates and fast closings, we help you secure the perfect Connecticut property to balance personal enjoyment with long-term investment potential.

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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 Connecticut define second homes?

Second home loans in Connecticut follow federal lending guidelines. To qualify, the property must be a one-unit home, livable year-round, and occupied by the borrower for part of the year. A 10–20% down payment, qualifying credit, and verifiable income are standard. Connecticut does not impose any additional rules regarding distance or occupancy for second homes. If you plan to rent the home part-time, it may still meet the requirements. At BNB Lending, we help you evaluate the loan type that fits your Connecticut property’s intended use.

How do local short-term rental rules impact second home loans in Connecticut?

Connecticut has no statewide short-term rental law, but individual towns may regulate STRs through zoning, business registration, or lodging taxes. These local policies can affect how a second home is classified and financed. If you use the property primarily for personal living and only rent occasionally, it may still qualify as a second home under lending guidelines. BNB Lending helps you assess your property's location and rental intent to ensure compliance with local Connecticut ordinances and align with the best loan structure.

Do second homes in Connecticut qualify for any property tax benefits?

Connecticut taxes all real estate under the same general system, but short-term rental properties may be taxed as commercial if they’re used primarily for income. This means a second home that’s frequently rented could face higher assessments—at up to 70% of fair market value. At BNB Lending, we help you anticipate how Connecticut municipalities might classify your property based on its use. While primary residences may have exemptions, second homes do not. Factoring in this tax treatment is key when structuring a sustainable financing plan.

Can I deduct mortgage interest on a Connecticut second home?

Yes, Connecticut allows a state income tax deduction for mortgage interest on a qualified second home. You may also qualify for a federal deduction if you itemize and your loan falls within IRS limits. If the home generates some rental income, you may be able to deduct a portion of interest as a business expense. BNB Lending helps you structure second home loans that support tax efficiency. We recommend consulting a tax advisor to understand how Connecticut and federal deductions apply to your financial situation.

Are there second home loan programs in Connecticut?

Connecticut Housing Finance Authority programs are available for primary residences only, with no state-sponsored second home financing options. That’s where BNB Lending steps in. We offer second home loans across Connecticut, including shoreline towns, rural communities, and seasonal destinations. Our flexible lending options include fast approvals, competitive rates, and support for occasional STR use. Whether you’re planning a weekend escape or a long-term investment, we help you finance the right Connecticut property without relying on state assistance.

What types of Connecticut properties qualify for second home loans?

Connecticut second home loans are available for single-family homes, cottages, condos, and townhomes used for seasonal or part-time occupancy. The property must be habitable year-round and primarily for personal use. In areas like Mystic or Litchfield County, local zoning or HOA rules may affect short-term rental eligibility. At BNB Lending, we evaluate your Connecticut property’s location and intended use to ensure it aligns with second home loan guidelines. We’ll help you secure a loan that supports your lifestyle and long-term investment goals.

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

If you plan to use the home for personal vacations and rent it only occasionally, second home financing is likely your best option. These loans offer better rates and down payment terms than investment property loans, but the property must be in your name—not an LLC. BNB Lending works with part-time residents, retirees, and buyers seeking lifestyle flexibility. We help you structure Connecticut second home loans that preserve cash flow while keeping lending compliant. It’s an ideal solution for combining comfort and smart investment strategy.

Thinking beyond Connecticut? Explore Airbnb loans and second home opportunities in nearby states like Massachusetts or New York to diversify your portfolio.