Rhode Island Second Home Loans and Mortgage Solutions

Financing Your Dream Second Home

Looking to purchase a second home in Rhode Island? Whether you’re considering a beach cottage in Narragansett, a city condo in Providence, or a seasonal getaway near Newport, BNB Lending offers second home loans tailored to part-time occupancy. We guide borrowers through Rhode Island’s local tax classifications, STR licensing rules, and financing eligibility. Our second home loans include competitive rates, fast closings, and a compliant structure to help you enjoy your property while meeting Rhode Island’s regulatory and tax obligations.

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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 Rhode Island?

Rhode Island second home loans follow federal lending rules. The property must be a single-unit home, livable year-round, and used by the borrower personally for part of the year. It cannot be held by an LLC or primarily rented. Lenders typically require a 10–20% down payment, solid credit, and documented income. Rhode Island does not add extra lending restrictions, but local zoning and classification laws may influence how the property can be used. BNB Lending ensures your financing aligns with your intended use and local regulations.

How do short-term rental rules affect loan classification?

Short-term rental use can disqualify a property from second home loan eligibility, depending on frequency and zoning. Rhode Island has no statewide STR policy, but cities like Providence require STR registration and collect a 12% hotel tax on bookings. Municipalities may also classify STR properties differently, impacting how they’re taxed or financed. At BNB Lending, we assess your intended rental frequency, location, and STR status to determine whether your property qualifies for second home financing or must be structured as an investment loan.

Do second homes qualify for property tax benefits in Rhode Island?

Rhode Island second homes are taxed at full market value, and no homestead exemption or tax discount applies. Property tax classifications are set at the municipal level, and second homes are often treated under Class 1 or 2 designations, which cap assessments at 100% of value. Cities like Providence enforce these classifications for STRs and second homes alike. At BNB Lending, we help you understand how your home will be assessed under local laws and factor these costs into your overall financing strategy.

Can I deduct mortgage interest on a second home?

Mortgage interest on a second home may be deductible on your federal return if you itemize and the property qualifies under IRS personal-use rules. Rhode Island does not impose a SALT cap, meaning you may deduct eligible mortgage interest and property taxes in full on your state return. If the property is occasionally rented, deductions may be prorated based on use. BNB Lending structures your loan with tax considerations in mind and recommends consulting a Rhode Island CPA for the most accurate guidance.

Are there second home loan programs in Rhode Island?

RIHousing programs are limited to primary residences and do not offer grants or financing support for second homes or seasonal-use properties. Their offerings are focused on first-time buyers and full-time homeowners. BNB Lending bridges that gap by offering tailored second home loan options across Rhode Island—from Newport cottages to Providence condos. We assist with tax forecasting, STR licensing, and zoning analysis to ensure your financing remains compliant while supporting your goals for vacation or part-time ownership.

What types of properties qualify for second home loans?

Second home loans apply to single-unit residences used primarily for personal occupancy and livable year-round. Eligible homes include detached houses, condos, and townhomes. The property must meet appraisal standards and cannot be a timeshare, multi-unit, or commercial-use building. In Rhode Island, local STR rules and classification laws may impact whether the property qualifies. BNB Lending evaluates your location, planned use, and property type to ensure second home loan eligibility under both lender and municipal requirements.

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

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