In Utah County, a lot of rental properties start out on short-term debt: a construction loan on a new twin home, a bridge loan on a fourplex bought fast, or hard money on a flip that turned into a hold. A rate-and-term refinance moves that debt onto a long-term loan sized to the rent.
In short: LendingStreet refinances 1-8 unit rentals in Provo, Orem and across Utah County with DSCR rate-and-term loans that pay off bridge, construction, hard money or existing loans, with up to 80% LTV on some programs and 30-year terms available. Qualification is based on the property's rent, with a 1.0x standard minimum DSCR and a 620 minimum credit score. No W-2s or tax returns are needed.
A rate-and-term refinance pays off the existing loan and closing costs with little or no cash back. The goal is a longer term, an amortizing payment and an end to maturity dates and extension fees. If you also want equity out, compare a cash-out refinance, which goes up to 75% LTV.
Common local cases include new build-to-rent twin homes in Spanish Fork or Saratoga Springs coming off construction loans, Orem fourplexes leased up after a bridge purchase, and Provo homes that were flipped and then kept.
Once a new rental has its certificate of occupancy and signed leases, it can move into a DSCR loan. New homes in Utah County often appraise well, but rent-to-value ratios are thin, so the refinance may not cover a large construction balance at the 1.0x minimum.
Run the refinance math before construction ends. If the rent will not support a loan large enough to pay off the construction debt, plan to bring cash to the refinance or lease at higher rents before you apply.
Interest-only bridge and hard money payments are easy to carry for a few months but expensive over time, and maturity dates create pressure. As soon as a property is leased and any unit-legality questions are resolved, a DSCR refinance can replace that debt with a 30-year payment.
Extension fees are another reason to move. Many short-term loans charge to extend past the original maturity, and those fees add up fast on a large balance. Starting the refinance 60 to 90 days before maturity leaves time for the appraisal, title work and any surprises.
This example is illustrative and not a quote. An investor owes $448,000 on a bridge loan for a newer Spanish Fork duplex, paying about $3,730 a month interest-only. Both units are now leased, at $1,925 and $1,800, for $3,725 a month. Taxes are $270 and insurance is $135 a month.
The duplex appraises at $650,000. A new DSCR loan of $454,500, about 70% LTV, pays off the bridge and about $6,500 in closing costs. Estimated principal and interest is about $3,178, the payment is about $3,583 and DSCR is about 1.04x. The payment is now fixed for the long term and pays down principal each month.
| Item | Bridge loan | DSCR refinance |
|---|---|---|
| Loan balance | $448,000 | $454,500 |
| Monthly loan payment | $3,730 interest-only | $3,178 principal and interest |
| Taxes and insurance | $405 | $405 |
| Total monthly cost | $4,135 | $3,583 |
| Maturity | Short-term | 30-year term available |
| DSCR at $3,725 rent | About 0.90x | About 1.04x |
Utah County properties often refinance near the 1.0x line. If yours comes in short, the options are a smaller loan with cash brought to closing, higher documented rents, or a sub-1.0 DSCR program where it fits. We will show you each version so you can choose.
Make sure the taxes in the file reflect the residential exemption if it applies, and that HOA dues on newer townhomes are included. Both move the ratio.
Many programs use the lower of actual lease rent and the appraiser's market rent. Signed leases, deposit records and a rent roll help. If a duplex or home has a basement unit, the appraiser and underwriter will look at whether it is legal for a non-owner-occupied property; unpermitted units may not count.
Near BYU, contracted student housing runs on semester cycles. If you refinance in summer, have the coming year's contracts ready, along with records of what the property collected the previous year.
Utah has no mortgage recording tax and no transfer tax, so a rate-and-term refinance mostly costs title insurance, escrow, appraisal and recording fees. That keeps the amount you need to roll into the new loan small, which helps the ratio. Title companies handle Utah closings, and a refinance can often be scheduled quickly once the appraisal is in.
Some programs size a refinance soon after purchase on cost rather than full appraised value. Our seasoning guide explains the common rules. If waiting a few weeks changes how the loan is sized, we can show both versions.
For new construction, the clock often starts with the certificate of occupancy and the first signed leases. Keep those dates and documents handy, along with your final construction cost, since some programs look at what you spent as well as what the property is worth.
Send LendingStreet the address, payoff letter, leases and photos, and we will show the new payment and ratio. Statewide information is on our Utah rate-and-term page. If you are still on the short-term loan and a few months from maturity, reach out now so we can plan the timing with you.
Yes, once the property has a certificate of occupancy and leases. Run the refinance math before the build is finished, because the rent may limit the loan size and you may need to bring cash to pay off the construction balance.
Up to 80% LTV on some programs, with lower limits on some 5-8 unit properties and larger balances. It varies by program.
Options include a smaller loan with cash to close, higher documented rent or a sub-1.0 DSCR program where it fits. We can show each version side by side so you can decide.
No. Utah has no mortgage recording tax. Expect title, escrow, appraisal and recording fees, which are usually modest enough to roll into the new loan.
Yes. Once the home is leased, a DSCR rate-and-term refinance can pay off the hard money with a 30-year loan.
No. Qualification is based on the property's rent, your credit (620 minimum) and reserves, so self-employed investors and those with heavy depreciation are not penalized.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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