Texas Second Home Loans and Mortgage Solutions

Financing Your Dream Second Home

Looking to purchase a lake house, ranch property, or STR-ready second home in Texas? Our second home loans are designed for part-time use and occasional rental income. BNB Lending finances Texas second homes, vacation getaways, and seasonal-use properties. With fast approvals and competitive terms, we help you grow your portfolio or secure a retreat that fits your lifestyle.

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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 Texas second home loan, and how does BNB Lending define second homes in Texas?

To qualify for a Texas second home loan, the property must be a one-unit residence suitable for year-round occupancy, personally used by the borrower for part of the year. BNB Lending typically requires a 10–20% down payment, a qualifying credit score, and verifiable income. Texas follows standard federal definitions—frequent rental activity may require reclassification as an investment property. We'll help structure the right loan based on your intended use and financial goals.

How do Texas short-term rental rules impact second home financing?

Texas allows short-term rentals under state law, but cities like Austin, Dallas, and Fort Worth have adopted local ordinances regulating licensing, zoning, and occupancy. These rules can affect both the usability and classification of your property. If you plan occasional short-term rentals, your home may still qualify as a second home. BNB Lending will evaluate your intended use and location to ensure compliance with both lending and local STR regulations.

Are there homestead tax breaks for second homes in Texas?

Texas offers a homestead exemption and property tax caps for primary residences only. Second homes do not qualify, which means you’ll pay full property tax rates. Additionally, if you rent the home short-term, it may be subject to local hotel occupancy taxes. At BNB Lending, we review the local tax implications of your Texas second home to help you anticipate costs and make an informed decision.

Is mortgage interest on a Texas second home deductible?

Mortgage interest on a Texas second home can be deducted at the federal level if you itemize deductions and meet IRS limits. Texas has no state income tax, so there’s no state-level deduction. If the property is rented out part-time, a portion of the interest may be deductible as a rental expense. BNB Lending structures your loan to support your tax goals and recommends working with a CPA for personalized advice.

Does Texas offer any second home loan programs?

Texas state housing programs typically support first-time buyers and primary residences—not second homes. BNB Lending offers private second home financing throughout Texas, including areas like Hill Country, the Gulf Coast, and major cities. We offer fast closings, competitive rates, and flexible terms, even without state-run incentives. This allows you to act quickly in Texas’s most competitive vacation markets.

What types of Texas properties qualify for a second home loan?

Eligible second homes in Texas include single-family houses, condos, townhomes, and 2–4 unit properties where you occupy one unit part-time. The home must be suitable for year-round living. If you plan to rent it occasionally, we’ll help you verify that it complies with zoning and HOA guidelines. Popular locations like Lake Travis or Galveston often have additional rules, which we help you navigate.

Who should use a Texas second home loan instead of an investment property loan?

These loans are perfect for self-employed individuals and investors who plan to use the property for seasonal living. If your Texas home will be used personally and only occasionally rented, a second home loan offers better terms than an investment loan. Note that second home loans must be in your name, not an LLC. BNB Lending helps you balance flexibility with favorable financing.

Looking beyond Texas? Discover Airbnb loans and second home options in nearby states like Oklahoma or New Mexico to diversify your rental portfolio.