Louisiana Second Home Loans and Mortgage Solutions

Frequently Asked Questions

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

Second home loans in Louisiana follow conventional lending standards. The property must be a one-unit dwelling, livable year-round, and occupied by the borrower for part of the year. It cannot be primarily used for short-term rentals or titled to an LLC. A 10–20% down payment is typically required, along with strong credit and verified income. While Louisiana does not add extra rules, zoning or HOA restrictions may still impact use. BNB Lending evaluates your borrower profile and intended property use to ensure your second home loan meets all eligibility criteria.

How do short-term rental rules impact loan structure?

Short-term rental activity can affect whether a property qualifies as a second home. If you plan to rent it frequently, lenders may reclassify the loan as an investment mortgage, which carries different terms. Louisiana has no statewide STR law, but cities like New Orleans and Baton Rouge require licenses and collect local hotel taxes. The state also imposes a 4% lodging tax on short-term stays. BNB Lending assesses your rental plans and property location to guide you toward the right loan type, ensuring your financing stays compliant with both lender and local guidelines.

Do second homes qualify for property tax exemptions in Louisiana?

Louisiana second homes do not qualify for the state’s homestead exemption, which is limited to primary residences. All other properties are assessed under different classifications. Short-term rental homes are typically categorized as “other” property and assessed at 15% of market value. While the millage rate is relatively modest, property tax bills can still be significant in some parishes. At BNB Lending, we help you understand how your Louisiana home will be assessed and what financial impact to expect—especially if you plan limited rental activity alongside personal use.

Can I deduct mortgage interest on a second home?

Yes, mortgage interest may be deductible at both the federal and Louisiana state level if you itemize deductions. Louisiana allows a modest deduction for home mortgage interest, but only for qualifying properties. If your home is used for short-term rental income, deductions must typically be prorated based on occupancy. Federal IRS rules also apply, including loan limits and personal-use requirements. BNB Lending structures your loan with potential tax advantages in mind and recommends consulting a Louisiana-based CPA to ensure accurate reporting and maximized benefits.

Are there second home loan programs in Louisiana?

Louisiana Housing Corporation programs are limited to primary residences, first-time buyers, and certain low- to moderate-income households. They do not provide assistance for second homes or vacation properties. Buyers looking for a part-time residence must work with private lenders. At BNB Lending, we offer second home loans across Louisiana, from New Orleans to Lake Charles and beyond. We provide competitive terms, quick closings, and expert support through the entire loan process—including STR compliance, tax review, and underwriting evaluation.

What types of homes can qualify for second home loans?

Eligible second homes must be one-unit residences that are livable year-round and used primarily for personal occupancy. Acceptable property types include condos, townhomes, and detached houses. The property must meet appraisal standards and cannot be part of a timeshare. In Louisiana, local ordinances may affect how much rental use is allowed, particularly in historic or tourist-heavy areas. At BNB Lending, we review your intended use, zoning status, and local licensing rules to ensure your home qualifies for second home financing without unexpected setbacks.

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

Thinking beyond Louisiana? Explore Airbnb loans and second home opportunities in nearby states like Mississippi or Texas to expand your portfolio.