Idaho Second Home Loans and Mortgage Solutions

Financing Your Dream Second Home

Considering a second home in Idaho? From lakeside cabins in Coeur d’Alene to mountain retreats near Sun Valley, BNB Lending offers flexible second home loans tailored to your lifestyle. These loans are designed for part-time personal use, with limited rental activity where permitted. We guide buyers through Idaho’s property tax rules, local STR requirements, and federal occupancy standards to ensure compliance. Whether you're seeking a quiet rural escape or a foothold in a resort community, we help you finance your Idaho dream home 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 in Idaho?

Second home loans in Idaho follow federal lending standards. The property must be a one-unit dwelling, suitable for year-round use, and personally occupied for part of the year. It must not be rented full-time or owned by an LLC. Lenders typically require 10–20% down, solid credit, and documented income. Idaho-specific rules don’t add additional restrictions, but zoning or HOA regulations in areas like Sun Valley may affect usage. BNB Lending helps you assess if your purchase qualifies for second home financing or if an investment structure is more appropriate.

How do short-term rental rules affect second home financing?

Zoning and rental activity play a big role in how your property is financed. If you're planning to rent it frequently, it may no longer qualify as a second home. Instead, it could require investment loan terms, which often include higher interest rates and stricter requirements. In Idaho, there's no statewide short-term rental law, but cities like Ketchum and Sun Valley enforce their own licensing and tax obligations. BNB Lending evaluates your intended use and local regulations to help determine whether your financing fits second home loan guidelines or should be restructured.

Do second homes qualify for property tax exemptions in Idaho?

Idaho second homes are not eligible for homestead exemptions or other residential property tax reductions. Property taxes are assessed at 100% of market value using local mill rates. While the state’s overall property tax burden is relatively modest, there is no classification difference for second homes, meaning you'll pay the same rate as any non-owner-occupied property. In resort areas, this can still lead to a sizable annual bill. At BNB Lending, we help you estimate potential tax exposure so your financing plan remains aligned with your overall budget and ownership goals.

Can I deduct mortgage interest on a second home?

Mortgage interest may be deductible at the federal level if the property is used primarily for personal occupancy and the loan falls within IRS thresholds. You must itemize deductions to qualify. If the property is rented occasionally, the deduction must be prorated based on the number of personal-use days versus rental days. Idaho does not have a state income tax, so there’s no state-level mortgage interest deduction to claim. BNB Lending structures your loan with these considerations in mind and recommends consulting a CPA to ensure your tax filings stay accurate and compliant.

Are there any second home loan programs in Idaho?

Idaho Housing and Finance Association programs are limited to primary residences and first-time homebuyers. There are no state-backed financing options for second homes or vacation properties. However, BNB Lending offers flexible second home loan options throughout Idaho—from mountain cabins to resort-area condos. We provide competitive rates, fast closings, and personalized guidance to help you navigate local zoning, STR tax obligations, and financing eligibility. Whether you're purchasing in McCall, Sun Valley, or near Lake Pend Oreille, we help you find the right solution to meet your second home goals.

What types of homes qualify for second home loans?

To qualify, the home must be a single-unit property that’s livable year-round and used primarily for personal occupancy. It can’t be a timeshare or a rental-focused investment. Eligible properties include detached homes, townhouses, and condos. The home must meet lender appraisal standards, and any HOA or zoning regulations should align with second home definitions. In Idaho’s popular resort areas, extra care may be needed to ensure STR activity doesn't jeopardize loan compliance. BNB Lending helps review your specific property and intended use to confirm whether it meets second home loan guidelines.

Who benefits from choosing a second home loan over an investment loan?

These loans are perfect for self-employed individuals, LLCs, and investors managing multiple properties. If you plan to use your Idaho home primarily for personal stays and only rent it occasionally, a second home loan may offer better rates and terms than an investment loan. These loans must be in your personal name—not held by an LLC. BNB Lending structures Idaho second home loans to provide flexibility while keeping your financing compliant with lender and zoning guidelines.

Thinking beyond Idaho? Explore short-term rental loans and second home opportunities in nearby states like Washington or Montana to expand your portfolio.