Iowa Second Home Loans and Mortgage Solutions

Financing Your Dream Second Home

Looking to purchase a second home in Iowa? Whether it’s a lakefront property, a wooded getaway, or a seasonal retreat near Des Moines, BNB Lending offers second home loans designed for personal use. We help buyers navigate Iowa’s local STR tax rules, real property classification, and lending eligibility. With competitive terms, fast approvals, and full regulatory guidance, our Iowa second home loans help you own with confidence and flexibility.

GET A QUOTE

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!

FIND OUT MORE

Frequently Asked Questions

What are the requirements for a second home loan in Iowa?

Iowa second home loans follow standard federal lending criteria. The home must be a single-unit property, livable year-round, and used by the borrower personally for part of the year. It cannot be owned by an LLC or used primarily for short-term rental income. Lenders typically require a 10–20% down payment, strong credit, and verified income. Iowa does not add any additional restrictions beyond local zoning. BNB Lending confirms your eligibility based on usage plans, location, and how the home aligns with lender rules.

How do short-term rental rules affect loan classification?

If the property is rented frequently, it may be classified as an investment rather than a second home. Iowa has no statewide STR law, but cities like Iowa City and Des Moines may require registration or enforce zoning limits. The state levies a 5% hotel/motel tax on short-term rentals, and local taxes may also apply. BNB Lending evaluates your property’s location, rental intent, and regulatory environment to determine whether a second home loan or investment mortgage is appropriate for your situation.

Do second homes qualify for property tax benefits in Iowa?

Iowa second homes are taxed at full market value. There is no homestead exemption for vacation or part-time residences. Primary residences may qualify for tax relief, but second homes must pay standard property taxes. Local levy rates vary by municipality. At BNB Lending, we help you estimate your annual property tax exposure and ensure your financing plan accounts for these long-term ownership costs. Understanding Iowa’s tax treatment is key to structuring a sustainable and compliant second home loan.

Can I deduct mortgage interest on a second home?

Mortgage interest on a second home is deductible on your federal return if you itemize and meet IRS personal-use standards. Iowa also allows mortgage interest deductions on state returns. If the home is rented part-time, expenses may need to be prorated. At BNB Lending, we structure your second home mortgage with tax efficiency in mind and recommend you consult with a CPA who understands both federal and Iowa-specific treatment of mixed-use vacation homes.

Are there second home loan programs in Iowa?

Iowa Finance Authority programs are limited to owner-occupied primary homes. These offerings support first-time buyers and affordable housing purchases, not second homes. At BNB Lending, we offer private second home loan options across Iowa—from lakeside cottages to countryside cabins. We assist borrowers with zoning research, STR tax planning, and property eligibility reviews to ensure their financing is properly structured and aligned with Iowa’s property rules.

What types of properties qualify for second home loans?

Second home loans are available for single-unit residences that are livable year-round and primarily used for personal occupancy. These include detached homes, condos, and townhomes. Properties must meet appraisal and lender condition standards and cannot be commercial-use, timeshare, or multi-unit. In Iowa, STR zoning or local taxes may affect classification. At BNB Lending, we review your intended use and location to ensure your home qualifies under second home lending standards.

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 Iowa 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 Iowa second home loans to provide flexibility while keeping your financing compliant with lender and zoning guidelines.

Thinking beyond Iowa? Explore second home loan and other Airbnb loan opportunities in nearby states like Wisconsin or Missouri to expand your portfolio.