North Dakota Second Home Loans and Mortgage Solutions

Financing Your Dream Second Home

Interested in a second home in North Dakota? Whether you’re buying a lakeside cottage, a prairie getaway, or a condo near Fargo, BNB Lending offers second home loans tailored to part-time personal use. We help you navigate North Dakota’s property classification rules, local STR taxes, and eligibility criteria. Our second home loans come with competitive terms, fast approvals, and full compliance with both lender expectations and North Dakota's local taxation systems. Let us help you finance your seasonal property with clarity and confidence.

GET A QUOTE

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 North Dakota?

North Dakota second home loans follow conventional federal lending rules. 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 titled to an LLC or used primarily for short-term rental income. Most lenders require a 10–20% down payment, solid credit, and verifiable income. North Dakota imposes no additional lending restrictions, though local zoning and HOA rules may apply. BNB Lending helps assess whether your intended property use and location meet second home loan criteria.

How do short-term rental rules affect loan classification?

If a property is rented out frequently, it may be reclassified as an investment and require different loan terms. North Dakota does not have a statewide STR law, but municipalities may impose licensing or lodging taxes. A 5% state sales tax and an additional 1% local tax typically apply to STR bookings. At BNB Lending, we evaluate your intended rental activity and location to determine whether your loan qualifies as a second home mortgage or needs to be structured under investment loan criteria.

Do second homes qualify for property tax breaks in North Dakota?

North Dakota second homes are generally assessed at the same residential rate as primary residences if they are one- to three-unit properties. The state applies a 9% assessment ratio to residential properties, while four or more units are taxed at the commercial rate of 10%. There are no special exemptions or homestead benefits for vacation homes. At BNB Lending, we help you forecast annual tax obligations based on your home’s use and classification under North Dakota law to keep your long-term costs predictable.

Can I deduct mortgage interest on a second home?

Mortgage interest may be deductible on both federal and North Dakota state returns if you itemize and the property meets IRS criteria for personal use. If the home is rented part-time, deductions may need to be prorated based on personal-use days. North Dakota follows federal standards for interest deductions and does not impose additional restrictions. At BNB Lending, we structure your loan with tax efficiency in mind and recommend working with a CPA familiar with North Dakota property and income tax regulations.

Are there second home loan programs in North Dakota?

North Dakota Housing Finance Agency and other state-level programs serve only primary residences. There are no grants, subsidies, or second home loan assistance programs for vacation buyers. At BNB Lending, we offer private lending solutions for second home buyers across North Dakota—from lake regions to rural retreats. We guide clients through property classification rules, zoning, and tax expectations to ensure your loan is structured for compliance, comfort, and long-term success.

What types of properties qualify for second home loans?

Eligible second homes must be one-unit dwellings that are suitable for year-round living and primarily used for personal occupancy. These include detached houses, townhomes, and condos. The property must meet appraisal and lender condition standards. Timeshares and multi-unit properties do not qualify under second home loan rules. In North Dakota, zoning and local STR rules may further affect eligibility. BNB Lending evaluates your intended use, location, and legal considerations 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 North Dakota 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 North Dakota second home loans to provide flexibility while keeping your financing compliant with lender and zoning guidelines.

Thinking beyond North Dakota? Explore Airbnb loans and second home opportunities in nearby states like South Dakota or Minnesota to expand your portfolio.