New York Second Home Loans and Mortgage Solutions

Financing Your Dream Second Home

Considering a second home in New York? Whether you’re purchasing a weekend cabin in the Catskills, a Hamptons beach house, or a city condo, BNB Lending offers tailored second home loan solutions. We help you navigate New York’s local property tax surcharges, STR rules, and lending guidelines. With competitive rates and quick closings, our second home loans are built for personal-use properties with limited rental activity. From Upstate retreats to NYC pied-à-terres, we ensure your New York loan aligns with both your lifestyle and compliance requirements.

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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 New York?

New York second home loans follow conventional federal lending guidelines. The property must be a single-unit residence, livable year-round, and personally used by the borrower for part of the year. It cannot be held by an LLC or used primarily for short-term rental income. Most lenders require a 10–20% down payment, a strong credit profile, and verifiable income. While New York does not impose statewide second-home restrictions, local zoning or HOA rules may influence loan eligibility. BNB Lending ensures your property meets all second home loan requirements.

How do short-term rental rules affect loan classification?

Frequent short-term rental use can cause a lender to reclassify your property as an investment, which changes the loan terms. New York imposes a 5.875% state hotel/motel tax on short-term stays, with additional local taxes and strict local regulations. New York City bans STRs in rent-stabilized buildings and requires host registration. At BNB Lending, we evaluate your intended use and property location to ensure your mortgage remains compliant with both local STR regulations and lender definitions for second home financing.

Do second homes qualify for property tax benefits in New York?

New York second homes do not qualify for STAR (School Tax Relief) credits, which are available only for primary residences. Property taxes are assessed locally and typically apply equally to all residential properties. However, some cities—including New York City—may impose a surcharge on non-owner-occupied homes, particularly rentals. This can increase your effective tax rate by up to 25% in certain boroughs or counties. At BNB Lending, we help buyers estimate the full tax impact of their second home purchase in New York based on location and intended use.

Can I deduct mortgage interest on a second home?

Mortgage interest on a second home is deductible at the federal level if you itemize and the home qualifies under IRS personal-use rules. New York allows residents to follow federal standards, but deductions may be affected by the SALT cap. If the property generates short-term rental income, interest deductions may need to be prorated. At BNB Lending, we help you structure the mortgage with tax efficiency in mind and recommend speaking with a New York-based CPA for full deduction eligibility guidance.

Are there second home loan programs in New York?

New York housing programs, including those offered by SONYMA (State of New York Mortgage Agency), are limited to primary residences and do not offer assistance for second homes. No state-run grants or loan subsidies apply to vacation homes or investment properties. For those looking to finance a seasonal or weekend property, BNB Lending provides customized second home mortgage solutions across New York—from Long Island to Lake George. We guide clients through STR zoning, tax surcharges, and eligibility compliance to ensure a smooth purchase.

What types of properties qualify for second home loans?

To qualify for second home financing, the property must be a single-unit dwelling that is livable year-round and primarily used for personal occupancy. Eligible homes include condos, townhomes, and single-family residences. The property must meet appraisal and condition standards and cannot be a timeshare or multi-unit structure. In New York, local regulations may limit STR activity or impose specific zoning restrictions. BNB Lending reviews your intended use, HOA requirements, and municipal rules to ensure your loan remains compliant and properly classified.

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

Thinking beyond New York? Explore Airbnb loans and second home opportunities in nearby states like New Jersey or Connecticut to expand your portfolio.