New Jersey Second Home Loans and Mortgage Solutions
Financing Your Dream Second Home
Looking for a second home in New Jersey? Whether you’re buying a shore house, a rural retreat in Hunterdon County, or a seasonal condo near the city, BNB Lending offers second home mortgage options tailored for personal-use properties. We help you navigate New Jersey’s property tax rules, short-term rental requirements, and local regulations. Our second home loans are built around your goals—offering competitive rates, fast closings, and full compliance with New Jersey's legal and financial environment. We make your second home investment smooth, transparent, and tax-aware.
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!
Frequently Asked Questions
What are the requirements for a second home loan in New Jersey?
New Jersey second home loans follow standard federal guidelines. The property must be a one-unit home, livable year-round, and used by the borrower part of the year. It can’t be titled to an LLC or used primarily as a short-term rental. Most lenders require 10–20% down, a good credit profile, and verifiable income. New Jersey does not impose additional rules beyond Fannie Mae’s requirements, but municipalities may enforce zoning or HOA restrictions. At BNB Lending, we evaluate your property and goals to ensure second home loan eligibility.
How do short-term rental rules affect loan classification?
If you plan to rent your property frequently, lenders may classify it as an investment home, which can change your loan terms and rate. New Jersey has no state-level STR ban, but many towns and cities require registration, licensing, or occupancy taxes. A statewide 6.625% sales tax applies to short-term rentals, and local hotel taxes may be added. At BNB Lending, we evaluate your rental plans and the property’s location to confirm whether a second home loan or investment mortgage is the right choice for your financing needs.
Do second homes qualify for property tax breaks in New Jersey?
New Jersey second homes do not qualify for the homestead rebate or any special property tax reductions. The state taxes all residential real estate at 100% of assessed value, regardless of occupancy. Only primary residences are eligible for the homestead benefit, which provides up to $1,500 in property tax relief. Itemized deductions for property tax may be available at the federal level but are subject to the SALT cap. BNB Lending helps you assess the long-term tax impact of owning a second home in New Jersey.
Can I deduct mortgage interest on a second home?
Mortgage interest on a second home may be deductible at the federal level if you itemize and the home meets IRS criteria for personal use. New Jersey allows mortgage interest deductions as well, but SALT caps can limit total itemized benefits. If your second home generates rental income, interest deductions may be prorated based on occupancy. At BNB Lending, we structure your loan to help preserve tax efficiency and recommend consulting a CPA familiar with both IRS and New Jersey-specific limitations.
Are there second home loan programs in New Jersey?
New Jersey Housing and Mortgage Finance Agency (NJHMFA) programs are limited to primary residences. These include down payment assistance and favorable terms for first-time homebuyers, but they don’t apply to second homes or vacation properties. BNB Lending offers tailored second home mortgage options throughout New Jersey—from Jersey Shore properties to countryside cabins. We help you stay compliant with local rental rules, navigate property tax considerations, and structure a loan that fits your seasonal-use goals.
What types of properties qualify for second home loans?
Second homes must be one-unit residences that are suitable for year-round occupancy and used primarily by the borrower for personal stays. This includes condos, detached homes, and townhomes. The property must meet lender appraisal standards and cannot be a timeshare or multi-unit investment structure. In New Jersey, zoning ordinances and HOA rules may limit short-term rentals or seasonal use. At BNB Lending, we assess your intended occupancy and location to ensure the property qualifies for second home financing.
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 New Jersey 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 New Jersey second home loans to provide flexibility while keeping your financing compliant with lender and zoning guidelines.
Thinking beyond New Jersey? Explore Airbnb loans and second home opportunities in nearby states like Pennsylvania or New York to expand your portfolio.
