Massachusetts Second Home Loans and Mortgage Solutions

Financing Your Dream Second Home

Interested in a second home in Massachusetts? Whether you’re eyeing a Cape Cod cottage, a western Massachusetts ski retreat, or a Boston condo, BNB Lending offers second home financing designed for part-time personal use with limited rental activity. We guide borrowers through property tax expectations, local STR rules, and eligibility requirements. Our mortgage solutions combine competitive rates with a hands-on approach—ensuring your loan aligns with both lender expectations and Massachusetts-specific policies. From zoning to taxes, we help you navigate every step of the second home buying process.

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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 Massachusetts?

Massachusetts second home loans follow federal lending standards. The property must be a one-unit dwelling, livable year-round, and personally occupied by the borrower for part of the year. It must not be used primarily as a short-term rental or titled to an LLC. Most lenders require a 10–20% down payment, stable income, and a strong credit profile. Massachusetts does not impose any additional occupancy or distance requirements, but local ordinances or HOA rules may apply. BNB Lending reviews your property and borrower profile to determine if it qualifies for second home financing.

How do short-term rental rules impact loan classification?

Short-term rental activity can influence whether a property qualifies as a second home or must be financed as an investment. If you rent it frequently, your lender may treat the loan as commercial. Massachusetts does not ban STRs statewide, but it imposes a 5.7% excise tax and allows towns to regulate licensing and registration. Some municipalities also cap new B&B-style listings. At BNB Lending, we help you understand how rental plans affect your loan options and ensure your financing remains compliant with both lender policies and local requirements.

Do second homes receive any property tax benefits in Massachusetts?

Massachusetts second homes are taxed at 100% of their assessed value, just like primary residences. There’s no separate classification or rate reduction for vacation properties. The state does not offer a homestead exemption for second homes, though certain elderly or disabled full-time residents may qualify for a small credit. In vacation destinations like Cape Cod or the Berkshires, tax rates can still be significant. BNB Lending helps buyers estimate annual property taxes and assess how these expenses impact overall affordability and loan structure.

Can I deduct mortgage interest on a second home?

Mortgage interest on a second home is generally deductible at the federal level if you itemize deductions and meet IRS criteria. Massachusetts allows borrowers to mirror this federal deduction on their state return. However, if your second home is rented out part of the year, the deduction may need to be prorated based on occupancy. BNB Lending structures your loan with these tax considerations in mind and encourages clients to consult a CPA familiar with Massachusetts tax law to maximize available benefits.

Are there second home loan programs in Massachusetts?

Massachusetts state housing programs—such as those offered by MassHousing—are designed for primary residences only. They typically support first-time buyers, veterans, and income-eligible households. No state assistance exists for vacation or part-time home purchases. That’s where BNB Lending comes in. We offer second home loans throughout Massachusetts, from the coast to the mountains. Our team provides fast closings, competitive rates, and local expertise to help you structure a second home loan that aligns with tax, zoning, and rental considerations.

What types of properties qualify for second home financing?

Eligible second homes include single-family homes, condos, and townhouses that are livable year-round and used primarily for personal occupancy. Properties must meet lender appraisal standards and be free from timeshare or multi-unit arrangements. Local regulations in Massachusetts towns may affect short-term rental use or zoning compliance. At BNB Lending, we evaluate your intended use, HOA rules, and property location to ensure it aligns with second home loan guidelines and avoids reclassification as an investment.

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

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