Maryland Second Home Loans and Mortgage Solutions

Financing Your Dream Second Home

Looking for a second home in Maryland? Whether it’s a waterside retreat in Annapolis or a vacation condo along the Eastern Shore, BNB Lending offers tailored financing for personal-use properties. Our second home loans come with flexible terms and fast closings, ideal for part-time owners who may occasionally rent. We guide you through Maryland’s local property tax systems, STR registration rules, and federal occupancy requirements. From resort towns to rural escapes, our team ensures your loan fits both your lifestyle and lender expectations—so you can buy your Maryland getaway 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 Maryland?

Second home loans in Maryland follow conventional lending standards. The home must be a one-unit property, livable year-round, and occupied by the borrower at least part of the year. It can’t be used primarily for short-term rentals or held in an LLC. Most lenders require 10–20% down, solid credit, and documented income. While Maryland does not impose additional occupancy rules, local zoning or HOA restrictions may apply. BNB Lending reviews your intended use and financial qualifications to determine whether your target property meets second home loan guidelines.

How do short-term rental rules impact mortgage classification?

If you plan to frequently rent out your home, lenders may classify the loan as an investment mortgage rather than a second home loan. This reclassification changes interest rates and documentation requirements. Maryland has no statewide law regulating short-term rentals, but counties like Anne Arundel and cities like Ocean City require registration and collect tourist taxes. BNB Lending evaluates your rental plans and local STR ordinances to ensure your financing aligns with lender and jurisdictional rules. That way, you avoid loan misclassification and stay compliant from the start.

Do second homes qualify for property tax exemptions in Maryland?

Maryland second homes do not qualify for the mortgage credit or homestead exemptions available to primary residences. Property taxes are set at the county level and assessed at full value regardless of owner occupancy. In high-demand vacation areas, this can result in a significant annual tax bill. Maryland does allow itemized deductions of property taxes at the federal level, but not through state-specific breaks for second homes. BNB Lending helps buyers estimate these costs so they can prepare for tax implications tied to long-term second home ownership.

Can I deduct mortgage interest on a second home?

Mortgage interest on a second home may be deducted on both your federal and Maryland state tax returns if you itemize. The IRS requires the property to be used personally and within loan limits to qualify. If the home is rented, interest deductions may need to be prorated based on personal-use days versus rental days. Maryland allows borrowers to mirror the federal deduction, but does not offer additional second-home incentives. At BNB Lending, we structure your loan with these tax factors in mind and recommend confirming details with your CPA.

Are there second home loan programs in Maryland?

Maryland’s state programs—including the Maryland Mortgage Program—are designed for primary residences only. They serve first-time buyers, veterans, and low- to moderate-income households purchasing owner-occupied homes. There are no second home or vacation loan programs at the state level. At BNB Lending, we offer competitive second home mortgage solutions throughout Maryland. Whether you’re buying in a waterfront community or a quiet mountain area, we help structure your loan to fit local regulations, usage goals, and long-term financial plans.

What kinds of homes qualify for second home financing?

Second home loans apply to single-unit properties that are livable year-round and used primarily for personal occupancy. These may include condos, townhouses, or detached homes. Timeshares, multi-unit residences, and properties primarily used as rentals typically don’t qualify. In Maryland, local STR ordinances and zoning laws may further restrict rental activity or seasonal use. At BNB Lending, we evaluate your specific property, local restrictions, and intended use to ensure it meets lender requirements for second home status.

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

Thinking beyond Maryland? Explore short-term rental loans and second home opportunities in nearby states like Virginia or Delaware to expand your portfolio.