Pennsylvania Second Home Loans and Mortgage Solutions

Financing Your Dream Second Home

Looking to purchase a second home in Pennsylvania? Whether you're considering a lakefront getaway in the Poconos, a cottage in Lancaster, or a weekend condo in Philadelphia, BNB Lending offers second home loans designed for part-time occupancy. We help borrowers navigate Pennsylvania’s STR licensing, real estate tax rules, and local zoning restrictions. Our financing options include competitive terms, fast closings, and a compliance-first approach to ensure your second home mortgage aligns with your goals and Pennsylvania’s legal landscape.

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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 Pennsylvania?

Pennsylvania second home loans follow federal lending standards. The property must be a single-unit dwelling, livable year-round, and personally used by the borrower for part of the year. It cannot be titled in an LLC or used primarily as a rental property. Most lenders require 10–20% down, strong credit, and documented income. Pennsylvania does not add state-level restrictions, but local zoning rules or HOA policies may affect use. BNB Lending evaluates your intended occupancy and property location to determine eligibility for second home financing.

How do short-term rental rules affect loan classification?

STR activity can cause a property to be reclassified as an investment, impacting loan structure and rates. Pennsylvania passed Act 27 of 2019, requiring STR operators to register with the state and enabling collection of a 5% lodging tax—on top of local taxes. Some municipalities also impose zoning restrictions or licensing rules. At BNB Lending, we assess your planned use, review local ordinances, and confirm whether your home qualifies for second home loan treatment or needs to be structured as an investment property.

Do second homes qualify for property tax benefits in Pennsylvania?

Pennsylvania second homes are taxed at 100% of their assessed value and are not eligible for homestead or farmstead exclusions, which apply only to primary residences in qualifying school districts. All tax rates are set at the local level, and there is no separate classification for vacation properties. BNB Lending helps you estimate your annual tax liability based on location, usage, and local assessments. We incorporate these costs into your overall loan strategy so you can confidently plan for long-term ownership in Pennsylvania.

Can I deduct mortgage interest on a second home?

Mortgage interest on a second home may be deductible if you itemize and your property meets IRS personal-use standards. Pennsylvania permits the deduction in alignment with federal rules, but the SALT cap may reduce benefits for high-tax areas. If the home is rented occasionally, the deduction may need to be prorated. At BNB Lending, we structure your loan with tax efficiency in mind and recommend that buyers consult a Pennsylvania-based CPA to understand state-specific deduction limits and reporting obligations.

Are there second home loan programs in Pennsylvania?

Pennsylvania Housing Finance Agency (PHFA) programs are designed for primary residences only. These include down payment assistance, first-time buyer loans, and closing cost programs—but they do not apply to second homes, vacation residences, or rental properties. BNB Lending fills that gap by offering private second home mortgage options across Pennsylvania. Whether you’re buying in the Poconos, near Lake Wallenpaupack, or in a historic downtown, we help you navigate local regulations and secure flexible financing.

What types of properties qualify for second home loans?

Second homes must be single-unit dwellings that are livable year-round and used primarily for personal occupancy. Eligible property types include single-family homes, townhouses, and condos. The property must meet appraisal standards and not be a timeshare, multi-unit investment, or short-term rental business. In Pennsylvania, local zoning or HOA rules may affect STR eligibility. BNB Lending evaluates your property’s features, intended use, and location to confirm it meets second home loan criteria under both lender and municipal standards.

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

Thinking beyond Rhode Island? Explore short-term rental loans and second home opportunities in nearby states like Massachusetts or Connecticut to expand your portfolio.