Washington Second Home Loans and Mortgage Solutions

Financing Your Dream Second Home

Looking to purchase a second home in Washington? Whether you're considering a beach house on the coast, a mountain retreat in the Cascades, or a Seattle condo for seasonal use, BNB Lending offers second home loan solutions tailored for part-time occupancy. We help buyers understand Washington’s STR rules, local property taxes, and loan compliance standards. With flexible terms, fast approvals, and a focus on zoning and tax alignment, our Washington second home loans support confident homeownership with occasional rental potential.

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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 Washington?

Washington second home loans follow federal lending standards. The property must be a one-unit dwelling, livable year-round, and personally occupied by the borrower part of the year. It cannot be primarily rented or titled to an LLC. Most lenders require 10–20% down, good credit, and verifiable income. Washington does not add specific lending restrictions, though HOA bylaws or municipal zoning may affect usage. At BNB Lending, we evaluate your intended use and location to ensure your second home loan meets lender and local compliance expectations.

How do short-term rental rules affect loan classification?

Short-term rental use can shift a property from second home to investment classification if used primarily for income. Washington prohibits local STR bans under HB 1236 (2021), but cities can regulate and license rentals. STR hosts must collect 6.5% state sales tax along with any applicable local lodging taxes. At BNB Lending, we review your rental plans and property location to determine whether your mortgage qualifies as a second home loan or should be structured for investment purposes, ensuring regulatory compliance from the start.

Do second homes qualify for property tax benefits in Washington?

Washington second homes do not qualify for any property tax exemptions or credits. The state has no income tax, and all real estate is assessed at 100% of market value. Local levy rates apply equally to primary and second homes, with no distinction for vacation use. BNB Lending helps you calculate projected tax obligations based on your home’s assessed value and location. We incorporate these ongoing expenses into your overall loan structure to ensure long-term financial sustainability for your second home in Washington.

Can I deduct mortgage interest on a second home?

You may deduct mortgage interest on a second home if you itemize on your federal return and the property meets IRS personal-use requirements. Washington has no state income tax, so no corresponding state-level deduction applies. If your second home is rented for part of the year, interest and expenses must be prorated. At BNB Lending, we help structure your loan with tax-efficiency in mind and recommend consulting a CPA who understands the interplay between federal rules and Washington’s tax structure for vacation properties.

Are there second home loan programs in Washington?

Washington Housing Finance Commission programs are limited to primary residences and first-time homebuyers. These offerings do not extend to second homes or vacation properties. At BNB Lending, we provide private second home loan options across Washington—from coastal retreats to city condos. We guide buyers through local STR compliance, zoning requirements, and long-term tax projections to ensure their financing is both strategic and compliant with state and local expectations.

What types of properties qualify for second home loans?

Second home loans apply to one-unit dwellings used primarily for personal occupancy and livable year-round. Acceptable properties include detached homes, condos, and townhouses. Properties must meet appraisal and condition standards and cannot be multi-unit, commercial, or titled to an LLC. In Washington, STR usage and zoning may influence classification. BNB Lending assesses your property’s location, structure, and intended use to confirm that it meets second home loan qualifications under lender and local 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 Washington 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 Washington second home loans to provide flexibility while keeping your financing compliant with lender and zoning guidelines.

Thinking beyond West Virginia? Explore Airbnb loans and second home opportunities in nearby states like Ohio or Virginia to expand your portfolio.