Maine Second Home Loans and Mortgage Solutions

Financing Your Dream Second Home

Dreaming of a second home in Maine? Whether it’s a waterfront cottage in Camden or a seasonal escape near Acadia, BNB Lending provides financing options designed for personal-use properties with occasional rental income. We help you navigate the nuances of property taxation, local short-term rental rules, and lender requirements. Our second home loans offer competitive terms and fast closings across Maine’s most desirable vacation destinations. From Portland to Bar Harbor, we tailor each mortgage to ensure it meets your occupancy goals and aligns with state and local tax guidelines.

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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 Maine?

Second home loans in Maine follow standard federal guidelines. The property must be a one-unit home, livable year-round, and occupied by the borrower for part of the year. It must not be primarily used for rental income or titled to an LLC. Most lenders require a down payment of 10–20%, solid credit, and verifiable income. Maine does not impose extra restrictions, but zoning laws and HOA rules in coastal or tourist-heavy towns may affect how the home is used. At BNB Lending, we ensure your property and plans meet second home financing criteria.

How do short-term rental regulations affect financing?

Short-term rental activity can impact your loan type. If the home is frequently rented or marketed as a commercial property, lenders may classify it as an investment, not a second home. While Maine has no statewide STR rules, towns like Portland and Bar Harbor require licensing, occupancy limits, and local taxes. The state also collects a 9% lodging tax on short stays. BNB Lending reviews your intended rental plans and helps ensure the loan structure supports your goals while complying with local and lender regulations.

Do second homes qualify for property tax breaks in Maine?

Maine does not offer a statewide homestead exemption for second homes. While some elderly and low-income residents may qualify for circuit breaker programs, most second homes are taxed at local rates ranging from 70% to 100% of market value. No special classification exists for vacation properties. If your home is in a tourism-focused area like Bar Harbor or Camden, it may be subject to higher assessments. BNB Lending helps you estimate annual tax obligations so you can factor them into your long-term cost planning.

Can I deduct mortgage interest on a second home?

Mortgage interest on a second home may be deductible on both federal and Maine tax returns, provided you itemize deductions and meet usage rules. The home must qualify as a personal-use property under IRS guidelines, and deductions may need to be prorated if rental income is involved. Maine continues to allow a state-level mortgage interest deduction, making second homes more tax-friendly for qualifying buyers. At BNB Lending, we structure your mortgage with tax considerations in mind and recommend discussing specifics with a Maine-based tax advisor.

Are there second home loan programs in Maine?

MaineHousing programs are limited to primary residences and first-time homebuyers. There are currently no state-backed loan programs or assistance options for vacation or second homes. However, BNB Lending fills that gap with customized second home loans throughout Maine. Whether you're purchasing a lakeside retreat, a ski cabin, or a coastal property, we offer flexible terms and expert guidance on tax, zoning, and rental considerations to ensure a smooth financing process tailored to your plans.

What types of homes qualify for second home loans?

Eligible second homes include single-unit residences that are livable year-round and used primarily for personal occupancy. Acceptable property types include detached homes, condos, and townhouses. Timeshares and investment properties are excluded. Local ordinances in Maine's tourism regions may limit rental activity or enforce seasonal usage restrictions, which could affect financing. At BNB Lending, we evaluate your property’s condition, location, and use plans to confirm that it qualifies for second home financing and complies with local standards.

Who should choose 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 Maine 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 Maine second home loans to provide flexibility while keeping your financing compliant with lender and zoning guidelines.

Thinking beyond Maine? Explore Airbnb loans and second home opportunities in nearby states like New Hampshire or Vermont to expand your portfolio.