Utah Second Home Loans and Mortgage Solutions

Financing Your Dream Second Home

Considering a second home in Utah? Whether you’re eyeing a Park City condo, a lakeside home near Bear Lake, or a Moab desert retreat, BNB Lending offers second home loans built for personal-use properties. We help you navigate Utah’s unique tax classifications, local STR limits, and financing eligibility. With fast closings, competitive terms, and compliance-first structuring, our Utah second home loans are designed to support your goals while aligning with state and municipal regulations.

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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 Utah?

Utah second home loans follow federal lending guidelines. The property must be a single-unit dwelling, suitable for year-round use, and personally occupied 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, good credit, and documented income. Utah imposes no additional loan restrictions, but local zoning or HOA rules may influence eligibility. BNB Lending confirms your home’s qualifications based on use, ownership structure, and location-specific rules.

How do short-term rental rules affect loan classification?

Frequent STR activity can disqualify a property from second home loan eligibility and require it to be financed as an investment. Utah has no statewide STR law, but cities like Park City enforce strict licensing and zoning. The state also collects a 3% transient room tax, with additional county tourism taxes. STRs rented less than 183 days annually may still qualify as residential Class 1 property. At BNB Lending, we evaluate your rental plans and property location to determine the proper loan type and ensure compliance.

Do second homes qualify for property tax benefits in Utah?

Utah second homes do not qualify for the state’s residential Class 1 tax rate unless rented fewer than 183 days per year. Residential property is taxed at 55% of market value, while properties used primarily as STRs fall into Class 2 and are taxed at 100%. There are no homestead exemptions or second-home-specific credits. At BNB Lending, we help you determine how your property will be classified based on your intended use and guide you in estimating total ownership costs under Utah’s property tax system.

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 use the property personally. Utah allows full itemized deductions on state taxes, having decoupled from the SALT cap in 2018. If the property generates short-term rental income, deductions may need to be prorated. At BNB Lending, we structure your mortgage with tax implications in mind and recommend speaking with a CPA who understands both IRS and Utah-specific deduction treatment for second homes and vacation rentals.

Are there second home loan programs in Utah?

Utah Housing Corporation programs are limited to primary residences and do not offer down payment assistance or grants for second homes. These programs focus on first-time and income-qualified buyers who intend to live in the home full-time. At BNB Lending, we provide second home mortgage options for buyers across Utah—from resort towns to rural retreats. We help you understand local STR restrictions, property tax classifications, and loan eligibility to ensure your financing is both strategic and compliant.

What types of properties qualify for second home loans?

Second home loans apply to single-unit properties used primarily by the borrower for personal stays and livable year-round. Acceptable property types include condos, detached homes, and townhouses. The property must meet appraisal and lender condition requirements. Timeshares, multi-unit rentals, and commercial properties are not eligible. In Utah, STR limits and tax classifications may impact a home’s qualification. BNB Lending evaluates your intended use and local requirements to ensure the property aligns with second home loan 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 Utah 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 Utah second home loans to provide flexibility while keeping your financing compliant with lender and zoning guidelines.

Thinking beyond Vermont? Explore Airbnb loans and second home opportunities in nearby states like New Hampshire or New York to expand your portfolio.