Utah has been one of the fastest-appreciating states in the West, and investors who bought along the Wasatch Front years ago often hold large equity. A DSCR cash-out refinance lets you use it, qualifying on the property's rent.
In short: Yes, LendingStreet finances DSCR cash-out refinances on 1 to 8 unit investment property in Utah, up to 75% LTV, qualifying on the property's rent rather than your tax returns. The rent has to cover the new payment, including taxes and insurance, at the program minimum, which is 1.0x on standard programs, and the minimum credit score is 620. Utah has no real estate transfer tax, and a long-term rental can often keep the residential property tax exemption, which helps the ratio; the gap between high values and rents is the main constraint.
You borrow against the rental's current value, retire the existing mortgage and keep the rest. The new loan is capped at 75% of appraised value on a cash-out, compared with up to 80% on a purchase. It works on 1 to 8 unit residential rentals, from a single-family home to a small 5-8 unit building, held in your name or an LLC.
The underwriter divides the rent by the new full payment, including taxes, insurance and any association dues. That ratio needs to be at least 1.0x on standard programs, and the post-cash-out payment is the one that counts. No W-2s or tax returns are involved, and the minimum credit score is 620.
If the ratio falls a little short at full leverage, a smaller loan or a sub-1.0 DSCR program can bridge the gap. Running the math at two or three loan amounts before you apply avoids surprises.
Salt Lake County holds the largest share of Utah's rentals, from older homes in Sugar House and the Avenues to newer townhomes in West Jordan, South Jordan and Herriman. Utah County, around Provo and Orem, has a large student rental market tied to BYU and UVU. Ogden and Layton serve Hill Air Force Base, and St. George in the southwest has grown quickly with both long-term and vacation rentals.
Park City and the Wasatch Back have very high values and a large ski-season rental market, where long-term rent alone rarely supports a high-leverage cash-out.
Utah has no real estate transfer tax and no state mortgage tax. Refinance costs are mainly title insurance, county recording fees, escrow, the appraisal and lender costs, which keeps more of the cash-out available to you.
Title companies typically handle closings in Utah. Ask for an estimate early so the net cash figure is accurate.
Utah taxes a primary residence on only part of its value through the residential exemption. A long-term rental that serves as a tenant's primary residence can generally qualify for the same exemption, while short-term rentals and second homes generally do not. Counties may ask the owner to sign a declaration.
Make sure your rental is classified correctly. A long-term rental that has lost the exemption can carry a much higher bill. A refinance does not change the classification, and underwriting uses the current bill.
Salt Lake City, Salt Lake County, Park City and many other jurisdictions license and restrict short-term rentals, and some St. George-area neighborhoods limit them to specific zones. STR income only counts if the property can legally operate as one, and many HOAs prohibit stays under 30 days.
The Wasatch Fault makes earthquake coverage a consideration, though it is usually a separate policy. Wildfire exposure in foothill and mountain areas can raise premiums. Get a current quote before you apply.
This example is illustrative and not a quote. An investor owns a townhome rental in Salt Lake County appraised at $500,000 with an existing loan of $240,000. Rent is $2,900 a month, and taxes and insurance run $310 a month, plus $150 in HOA dues.
At 75% LTV the new loan is $375,000, leaving $135,000 after the payoff and before closing costs. On a 30-year amortization, principal and interest is about $2,558, so the total payment is about $3,018 and the DSCR is about 0.96x, below the 1.0x standard minimum.
At 70% LTV the loan is $350,000 and principal and interest is about $2,388. The payment drops to about $2,848, the DSCR rises to about 1.02x, and the investor still receives $110,000 before closing costs.
At 75% LTV the ratio falls short of 1.0x, which is common along the Wasatch Front where values outpace rents. At 70% it works, and the residential exemption keeps the tax line modest.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Appraised value | $500,000 | $500,000 |
| New loan | $375,000 | $350,000 |
| Existing loan payoff | $240,000 | $240,000 |
| Cash before closing costs | $135,000 | $110,000 |
| Monthly payment (P&I, taxes, insurance, HOA) | About $3,018 | About $2,848 |
| DSCR at $2,900 rent | About 0.96x | About 1.02x |
How soon you can cash out depends on the program. Some programs permit it shortly after purchase, and others use the lower of appraised value or cost basis until the property is seasoned. If you finished a renovation recently, keep invoices and photos, since they support the higher value.
Beyond seasoning, three things set the final number: the 75% LTV ceiling, the rent covering the new payment at the program minimum, and closing costs. Maximum LTV can be lower on 5-8 unit properties and larger balances; it varies by program.
The proceeds are yours to use for business purposes. Common uses include:
A complete file gets a faster, clearer answer. Have these ready when you reach out.
Yes. LendingStreet offers DSCR cash-out refinances on non-owner-occupied 1 to 8 unit rentals in Utah, up to 75% LTV, qualifying on the property's rent.
Start with 75% of the appraised value, subtract the payoff on your current loan and closing costs. Then check that the rent covers the new payment at 1.0x or the program minimum.
No. Utah has no real estate transfer tax and no state mortgage tax. Refinance costs are mainly title, recording, escrow, appraisal and lender costs.
A long-term rental used as a tenant's primary residence can generally qualify. Short-term rentals and second homes generally do not. Confirm with your county assessor.
Only if it is licensed and in a zone that allows nightly rentals. If it qualifies, some programs use revenue. Bring booking history.
Seasoning varies by program. Some allow cash-out soon after purchase; others want several months of ownership or cap the loan at purchase price plus documented improvements.
Yes. DSCR programs cover 1 to 8 units. Maximum LTV can be lower on 5-8 unit properties, so the cash-out may be smaller than on a single-family home. It varies by program.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so the property must be a rental, not your residence.
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