Investors who bought Utah County rentals a decade ago are sitting on a lot of equity. A DSCR cash-out refinance can turn that equity into a down payment, rehab money or reserves, qualified on the property's rent instead of your tax returns.
In short: LendingStreet offers DSCR cash-out refinances on 1-8 unit rentals in Provo, Orem and across Utah County up to 75% LTV, qualified on the property's rent with no W-2s or tax returns. Loans start at $150,000 with no stated maximum, the standard minimum DSCR is 1.0x at the new payment, and LLC borrowers are standard. Cash-out seasoning varies by program.
The typical borrower bought a duplex, fourplex or single-family rental in Provo or Orem years ago, when prices were far lower, and has paid the loan down since. Today the property may be worth two or three times its purchase price, while the rent has grown more slowly.
That combination means plenty of equity but a ratio that limits how much of it you can take. The usual question here is not whether the value supports a loan, but whether the rent supports the payment on the loan you want.
In many markets, cash-out is capped by the 75% LTV limit. In Utah County, the 1.0x DSCR standard minimum often bites first, because a bigger loan raises the payment faster than older leases cover it. A cash-out that looks fine on value can fail on rent.
Before you apply, check whether your current leases are at market. Bringing below-market rents up at renewal, within the lease terms and state law, can increase what you can borrow. Utah law bars local rent control, but your existing leases still control until they end.
This example is illustrative and not a quote. An investor owns an Orem fourplex worth about $860,000 with a remaining loan of $235,000. Each unit rents for $1,500, so rent is $6,000 a month. Taxes are $345 a month with the residential exemption and insurance is $195.
At 75% LTV the new loan is $645,000, the payment is about $5,050 and DSCR is about 1.19x. After paying off the old loan, the investor receives about $410,000 before closing costs. At 65% LTV, cash out drops to about $324,000 but DSCR rises to about 1.35x.
| Item | 75% LTV | 70% LTV | 65% LTV |
|---|---|---|---|
| New loan | $645,000 | $602,000 | $559,000 |
| Estimated principal and interest | $4,510 | $4,209 | $3,909 |
| Taxes and insurance | $540 | $540 | $540 |
| Total monthly payment | $5,050 | $4,749 | $4,449 |
| DSCR at $6,000 rent | About 1.19x | About 1.26x | About 1.35x |
| Cash out before costs | $410,000 | $367,000 | $324,000 |
Utah's 45% residential exemption applies to property used as a primary residence, which generally includes a long-term rental leased to tenants who live there full time. It keeps the tax line low and helps the ratio. If you change how you rent the property, for example by moving to short-term stays, the exemption can be lost and taxes can rise.
Check your current tax notice to see whether the exemption is applied, and confirm with the Utah County Assessor if you are unsure. If a past tenant moved out and the home sat empty, make sure the exemption was not removed in the meantime.
How long you need to own a property before a cash-out varies by program; our seasoning guide covers the common timelines. For long-held rentals, seasoning is rarely the issue.
Appraisers value small multi-units in Utah County with comparable sales and the income approach. If the property has a basement unit, the appraiser will consider whether it is legal. Units that are not permitted may be valued as extra living space rather than as rentable apartments, which can lower both the value and the rent used.
Utah has no mortgage recording tax and no transfer tax, so a cash-out refinance here mostly costs title insurance, escrow, appraisal and recording fees. That makes refinancing cheaper than in states that tax new mortgages, and it leaves more of the cash in your hands.
Ask for a lender's title policy quote early, and budget for an appraisal on a small multi-unit, which usually costs more than one on a single-family home because the appraiser also completes a rent survey and income analysis.
Investors here often use cash-out proceeds as a down payment on a newer property in Lehi, Saratoga Springs or Spanish Fork, to fund a flip, or as reserves that make the next purchase easier to finance. Because Utah County purchases often need larger down payments to cash flow, a cash-out on an older property can make the next deal workable.
If you own five or more rentals, a blanket portfolio loan can refinance them together on combined cash flow, which can unlock equity across several properties at once.
A cash-out raises your monthly payment and reduces your equity cushion. Make sure the remaining cash flow still covers vacancies, summer slowdowns near campus and repairs on an older building. Talk with your tax advisor about how the refinance fits your plans; we do not give tax advice.
Send LendingStreet the address, estimated value, current balance, rents and the cash you want. We will run the ratio at several loan amounts and show you the trade-off between cash and cash flow. Statewide information is on our Utah cash-out page. If you are weighing a cash-out against selling, we can show the cash each option produces so you can compare them.
Have your leases, current mortgage statement, insurance declarations and latest tax notice ready. If you own the property in an LLC, include the operating agreement.
Up to 75% of the appraised value, less your existing loan and closing costs. In Utah County, the rent often limits the loan before the LTV does, so we check both.
Usually because the rent does not cover the payment on a larger loan at the program minimum. Higher market rents or a lower loan amount fix that.
No, refinancing does not change it. How the property is used does. A long-term rental that is a tenant's primary residence can generally keep it.
No. Utah has no mortgage recording tax and no transfer tax. Expect title insurance, escrow, appraisal and recording fees instead, which keeps more of the cash-out in your hands.
Only if the unit is legal for a non-owner-occupied property. An unpermitted unit may not be counted as rentable, which lowers both the rent used and possibly the appraised value.
No. DSCR cash-out refinances qualify on rent. We review credit, with a 620 minimum score, reserves, the leases and the property itself.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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