Utah County is one of the fastest-growing places in the country, and home prices have climbed faster than rents. That makes the DSCR ratio, not the credit score, the number that decides most Provo and Orem rental loans.
In short: LendingStreet finances 1-8 unit rentals in Provo, Orem and across Utah County with DSCR loans that qualify on the property's rent, with no W-2s or tax returns. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV, the standard minimum DSCR is 1.0x and the minimum credit score is 620. LLC borrowers are standard and 30-year terms are available.
In Provo, rentals cluster around Brigham Young University in Joaquin, Pleasant View and the blocks north and east of campus, along with older homes in the Franklin, Timp and Maeser neighborhoods. Orem has a large stock of 1960s to 1980s ranches, split-levels and small multi-units, with Utah Valley University driving demand on its west side.
North county, Lehi, American Fork and Saratoga Springs offer newer townhomes and single-family homes near the tech employers along I-15. South county, Springville, Spanish Fork and Payson trade at lower prices with more traditional family rentals.
| Area | Typical rental | Tenant base | Watch item |
|---|---|---|---|
| Provo near BYU | Older homes, duplexes, small multi-units | Students, young families | Occupancy limits, contract terms |
| Orem | Ranches, split-levels, fourplexes | UVU students, workforce | Basement unit legality |
| Lehi, American Fork, Saratoga Springs | Newer townhomes and homes | Tech workers, families | HOA leasing rules, high prices |
| Springville, Spanish Fork, Payson | Single-family and duplexes | Families, commuters | Longer commutes, newer subdivisions |
Prices across Utah County rose sharply over the last decade, and rents have not always kept pace. A property that looks like a good long-term hold can still produce a DSCR below 1.0x at 80% LTV, simply because the payment on a higher loan outruns the rent.
Local investors respond by putting more money down, buying duplexes and small multi-units that produce more rent per dollar, or using one of our sub-1.0 DSCR programs when the long-term case is strong. Running the numbers at a few leverage levels before you write an offer saves time.
This example is illustrative and not a quote. An investor buys an Orem side-by-side duplex for $525,000. The units lease for $1,650 and $1,450, so rent is $3,100 a month. Taxes are budgeted at $230 a month with the residential exemption, and insurance is $120.
At 75% LTV the loan is $393,750, the payment is about $3,103 and DSCR is about 1.00x, right at the line. At 70% LTV the loan drops to $367,500, the payment to about $2,920 and DSCR rises to about 1.06x. Without the residential exemption, taxes would be about $418 and DSCR at 70% LTV would be about 1.00x.
| Item | 75% LTV | 70% LTV | 70% LTV, no exemption |
|---|---|---|---|
| Loan amount | $393,750 | $367,500 | $367,500 |
| Estimated principal and interest | $2,753 | $2,570 | $2,570 |
| Taxes and insurance | $350 | $350 | $538 |
| Total monthly payment | $3,103 | $2,920 | $3,108 |
| DSCR at $3,100 rent | About 1.00x | About 1.06x | About 1.00x |
Utah taxes most homes that are someone's primary residence on 55% of market value, through a 45% residential exemption. A long-term rental leased to a tenant as their primary home can generally qualify, while second homes, vacant homes and short-term rentals are usually taxed on full value. Utah County may ask for a signed declaration of how the property is used.
For an investor, that means the tax line depends on how you rent. Confirm with the Utah County Assessor before you rely on the lower figure, and expect a higher bill on a property you plan to rent by the night.
Provo and Orem both regulate how many unrelated adults can share a home, and the limits vary by zone. Near BYU, that rule often matters more than bedroom count when you estimate rent. Many Utah homes also have finished basements with a kitchen, but a basement used as a separate apartment is legal only where the city allows it, and some accessory apartment rules require the owner to live on the property, which rules them out for an investor.
Before you count a basement unit's rent, confirm with the city that it is a legal, permitted unit for a non-owner-occupied property.
BYU's off-campus housing rules require many single students to live in university-contracted housing, which has its own standards and contract terms. Those contracts often run on fall-winter and spring-summer cycles, and summer demand is softer. If you buy near campus, understand how the property is contracted and what rent it earns across a full year, not just during the fall semester.
Utah has no real estate transfer tax and no mortgage recording tax, so closing costs are mostly title insurance, escrow and recording fees. State law also bars cities from adopting rent control. Both help keep a rental budget predictable, but HOA leasing restrictions in newer north-county communities can still limit what you can rent and for how long.
Nightly rentals are a tougher fit here than in Utah's resort areas. Many Utah County cities limit rentals of less than 30 days in residential zones, HOAs in newer communities often ban them, and a short-term rental usually loses the residential tax exemption. Check the city's rules and your HOA before you buy.
Some of our short-term rental programs can qualify on projected revenue where the use is legal. Investors focused on nightly rentals in Utah often look at resort areas in Summit, Wasatch or Washington counties, where some zones are set up for them; our Utah short-term rental page covers that side of the state.
Send LendingStreet the address, price, rent and the leverage you want. We will run the ratio at a few loan amounts, including sub-1.0 options where they fit, and come back with choices. For statewide context, see our Utah DSCR page.
Usually because the purchase price is high relative to rent, so the payment on a large loan outruns the lease. Lower leverage, a duplex or small multi-unit, or a sub-1.0 DSCR program are the common fixes.
A long-term rental that is a tenant's primary residence can generally qualify. Short-term rentals, second homes and vacant homes usually do not. Confirm with the Utah County Assessor.
Only if it is a legal unit for a non-owner-occupied property. Some city rules require the owner to live on site, so check before you buy.
Yes. We lend throughout Utah County, including Lehi, American Fork, Saratoga Springs, Eagle Mountain, Springville and Spanish Fork. Newer communities there often have HOA leasing rules, so review them before you buy.
Yes, if it is a 1-8 unit investment property and its occupancy complies with city rules and any contracted housing terms.
No. Utah has no real estate transfer tax and no mortgage recording tax. Expect title, escrow and recording fees.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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