Oregon Second Home Loans and Mortgage Solutions

Frequently Asked Questions

What are the requirements for a second home loan in Oregon?

Oregon second home loans follow federal lending guidelines. The home must be a one-unit property, livable year-round, and personally used by the borrower for part of the year. It cannot be held in an LLC or used primarily as a short-term rental. Most lenders require 10–20% down, strong credit, and documented income. Oregon does not impose extra rules, but local municipalities may enforce STR-specific zoning or licensing. BNB Lending evaluates your intended use, location, and local ordinances to confirm loan eligibility and structure your financing accordingly.

How do short-term rental rules affect loan classification?

Short-term rental use may trigger reclassification of a property from second home to investment, especially with frequent rentals. Oregon’s SB 836 (2023) prevents outright STR bans but allows local governments to regulate them through zoning and licensing. Hosts must also collect a 1.8% statewide STR surcharge, along with applicable local lodging taxes. BNB Lending evaluates your intended rental frequency and location-specific rules to help determine whether your loan can qualify as a second home mortgage or needs to be structured as an investment loan.

Do second homes qualify for property tax benefits in Oregon?

Oregon second homes do not receive a homestead exemption. All real property is assessed at 100% of value, and STRs may be reclassified as commercial for tax purposes if rented frequently. Oregon does allow a circuit breaker credit for low-income primary residences, but second homes are not eligible. At BNB Lending, we help you evaluate whether your Oregon property will be taxed as residential or commercial based on your use, and factor that into your long-term cost planning and financing strategy.

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 your loan qualifies under IRS rules. Oregon decoupled from the federal SALT cap in 2021, meaning you may deduct the full mortgage interest and property tax amount on your Oregon state return. However, if the property is rented, deductions must be prorated based on occupancy. BNB Lending structures your loan to maintain these benefits and recommends consulting a CPA familiar with Oregon’s tax policies to ensure full compliance.

Are there second home loan programs in Oregon?

Oregon Housing and Community Services programs are limited to owner-occupied, primary residences. These programs support first-time homebuyers and income-qualified families but do not apply to second homes or vacation properties. BNB Lending provides tailored second home loan options throughout Oregon, from Mount Hood retreats to coastside cottages. We guide you through local licensing, zoning regulations, and property tax implications so your loan is both compliant and optimized for your lifestyle and financial goals.

What types of properties qualify for second home loans?

Second homes must be one-unit properties used primarily for personal occupancy and livable year-round. This includes single-family homes, condos, and townhouses. Timeshares, multi-unit properties, and primarily income-producing rentals are not eligible. In Oregon, zoning laws and STR licensing may impact how your property is classified or used. BNB Lending evaluates your property’s structure, intended use, and location to ensure it qualifies for second home loan treatment under both lender rules and local regulations.

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

Thinking beyond Oregon? Explore Airbnb loans and second home opportunities in nearby states like Washington or California to expand your portfolio.