Utah's population has grown quickly for years, and rental demand has followed. Whether you're buying a long-term rental on the Wasatch Front or a vacation rental near the parks, the lender's rules decide how much you can borrow.
In short: The best DSCR lender in Utah depends on what kind of rental you're buying. For long-term rentals in Salt Lake City, Provo-Orem and Ogden, compare minimum DSCR, leverage and rate. For short-term rentals in Park City or St. George, the key question is whether the lender qualifies on projected STR revenue and whether local zoning allows nightly use. LendingStreet finances investment property in Utah with DSCR rates from 6.125%, short-term rental DSCR from 6.49% and no W-2s or tax returns.
Visio Lending, Kiavi, LendingOne, Lima One and RCN Capital also write DSCR loans, as does LendingStreet. Each sets its own rules for minimum ratio, condo eligibility, short-term rental income and leverage.
In Utah those differences are sharpest on resort property. One lender may size a Park City condo on long-term rent while another credits projected nightly revenue, and the loan amounts can be far apart.
We offer DSCR loans with 30-year fixed options that qualify on the property's rent. Rates start at 6.125% for well-qualified borrowers. Short-term rental DSCR starts at 6.49% and qualifies on projected revenue.
Purchases go up to 80% LTV and cash-out refinances up to 75%, with a 620 minimum credit score and a standard 1.0x minimum ratio. Some programs go below 1.0 or offer no-ratio options. LLC borrowers are welcome, and loans start at $150,000.
Salt Lake City and its suburbs are the state's largest rental market, with demand from the University of Utah, healthcare, tech and finance employers. Provo-Orem, home to Brigham Young University and Utah Valley University, has a large student and young-family renter base. Ogden, near Hill Air Force Base, tends to have lower prices than Salt Lake.
St. George in southwest Utah is one of the state's fastest-growing areas and sits near Zion National Park, so vacation rentals are common. Park City is a ski resort town with very high prices and condo-heavy inventory.
Many Utah cities limit short-term rentals to specific zones, and resort areas such as Park City, Summit County and St. George each set their own licensing and zoning rules. HOAs in resort developments may allow or prohibit nightly rentals regardless of city rules.
Confirm the property's zoning, any required business license and the HOA covenants before you buy. A property that cannot legally rent nightly will be sized on long-term rent.
This example is illustrative and not a quote. An investor buys a resort-area townhome for $700,000 in a zone that allows nightly rentals. Projected short-term rental revenue is $69,600 a year, or $5,800 a month. Long-term market rent would be $3,400 a month. Taxes, insurance and HOA dues total $900 a month.
At 75% LTV the loan is $525,000. At a sample rate of 7.5% on 30-year amortization, principal and interest is about $3,671 and the total payment is about $4,571. On projected STR revenue, DSCR is about 1.27x. On long-term rent it would be about 0.74x. How a program counts projected revenue varies, so this shows why the STR rules and the lender's method both matter.
| Item | STR revenue basis | Long-term rent basis |
|---|---|---|
| Loan at 75% LTV | $525,000 | $525,000 |
| Principal and interest | $3,671 | $3,671 |
| Taxes, insurance and HOA | $900 | $900 |
| Total monthly payment | $4,571 | $4,571 |
| Monthly income used | $5,800 | $3,400 |
| DSCR | About 1.27x | About 0.74x |
Beyond the ratio, a few items come up often on Utah files.
Send the address, price, lease or STR revenue projection, insurance quote, HOA documents and your LLC paperwork. For an existing vacation rental, include 12 months of booking history if you have it.
Our financing team reviews your scenario and comes back with 2-3 options showing leverage on both long-term and short-term income where it applies.
Yes. LendingStreet finances investment property in Utah, including Salt Lake City, Provo-Orem, Ogden, St. George and Park City. Loans are business-purpose on non-owner-occupied property and start at $150,000.
It depends on the property. Visio Lending, Kiavi, LendingOne, Lima One, RCN Capital and LendingStreet all write DSCR loans. For resort property, compare how each treats STR revenue.
Possibly, if the zoning and HOA allow nightly rentals and the condo project meets program rules. Condotel-style buildings may need a non-warrantable condo program.
Many do, where city zoning allows short-term rentals. Our STR program qualifies on projected revenue. Confirm the property's zone and license requirements before you buy.
You can increase your down payment or look at a sub-1.0 DSCR or no-ratio program. Those programs usually come with lower leverage and stronger credit or reserve requirements.
No. The loan qualifies on the property's rent or projected STR revenue. You need a 620 or higher credit score, reserves and LLC documents if you use an entity.
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