Utah County has plenty of homes priced above $1.5 million, from Alpine and Highland to Traverse Mountain in Lehi. The hard part is not finding one; it is finding one whose rent can carry a jumbo-size payment.
In short: LendingStreet offers jumbo DSCR loans from about $1.5M to $5M+ for purchase, rate-and-term and cash-out on high-value 1-8 unit rentals in Provo, Orem and across Utah County, qualified on the property's rent with no W-2s or tax returns. Larger balances get more review, and maximum LTV can be lower and varies by program. In this market, the properties that qualify most easily at jumbo size are often small apartment buildings rather than luxury homes.
High-value single-family homes cluster in Alpine, Highland and Cedar Hills along the north bench, at Traverse Mountain in Lehi, in Mapleton and on the east bench of Provo in neighborhoods such as Edgemont and the Riverbottoms. Cabins and homes up Provo Canyon toward Sundance also reach high prices.
On the income side, the largest balances often come from five- to eight-unit buildings near BYU and UVU, where several units of rent support a large loan more comfortably than one family's lease.
Prices for large homes in Alpine or Highland have outpaced the rents those homes earn on a 12-month lease. A home that sells for more than $2 million may lease for a fraction of what its payment would be at normal leverage. That does not make it a bad investment, but it does mean a lower loan amount, a larger down payment or a sub-1.0 DSCR program.
Executive leases also have a small tenant pool, often relocating families and professionals, so vacancies can run longer than for a typical rental.
This example is illustrative and not a quote. Compare an Alpine executive home priced at $2,200,000 that leases for $9,000 a month with an Orem eight-unit building priced at $2,400,000 where each unit leases for $1,750, for $14,000 a month.
At 70% LTV the Alpine home's loan is $1,540,000, the payment including taxes and insurance is about $12,008 and DSCR is about 0.75x. Even at 60% LTV, DSCR is only about 0.86x. The eight-unit building at 70% LTV carries a $1,680,000 loan with a payment of about $13,467 and DSCR of about 1.04x, above the 1.0x standard minimum.
| Item | Alpine home, 70% LTV | Alpine home, 60% LTV | Eight-unit, 70% LTV |
|---|---|---|---|
| Loan amount | $1,540,000 | $1,320,000 | $1,680,000 |
| Estimated principal and interest | $10,768 | $9,230 | $11,747 |
| Taxes and insurance | $1,240 | $1,240 | $1,720 |
| Total monthly payment | $12,008 | $10,470 | $13,467 |
| DSCR | About 0.75x | About 0.86x | About 1.04x |
Utah's property taxes are moderate by national standards, and a long-term rental leased as a tenant's primary home can generally qualify for the 45% residential exemption. A luxury home that sits vacant between leases, or is used as a short-term rental or second home, is usually taxed on full value. On a $2 million-plus property, that difference is large.
Confirm the exemption status with the Utah County Assessor and budget on the right figure.
Many high-end homes sit on the benches above the valley floor, where wildfire exposure is real and insurers are paying attention. Large custom homes also carry high replacement costs. Earthquake coverage is separate and optional, but owners of expensive properties along the Wasatch Fault often consider it.
Get an insurance quote early in the contract period. On a large home, premium differences move the ratio.
Some investors look at large homes as group or event rentals. Many Utah County cities and HOAs limit rentals of less than 30 days in residential zones, and short-term use usually removes the residential tax exemption. Some of our short-term rental programs can qualify on projected revenue where the use is legal. Investors focused on luxury nightly rentals in Utah often look at resort areas such as Park City, where our Salt Lake City and Park City jumbo page covers the details.
Jumbo DSCR loans still qualify on rent with a 620 minimum credit score and 30-year terms available. Expect more review of reserves, possibly a second valuation, and lower maximum LTV than on smaller loans. Pricing on large balances is set case by case.
Comparable leases for luxury homes are thin, so bring any lease history you have. For apartment buildings, two years of operating statements and a current rent roll carry the most weight.
Appraisals at the top of the Utah County market can also be harder. There are fewer recent sales of $2 million-plus homes in any one city, and custom features such as sport courts, theaters and large shops do not always add value dollar for dollar. Leave room in your plan for a value that comes in below the contract price.
If you own five or more Utah County rentals, a blanket portfolio loan can combine them under one loan qualified on combined cash flow, with release provisions when you sell one. That often reaches a large balance more easily than a single luxury home.
It also spreads risk. One luxury home has all of its income tied to a single lease, while a group of duplexes and fourplexes across Orem, Springville and Spanish Fork keeps producing rent if one unit sits empty for a month.
Send the address, price or value, the rent or rent roll and your target leverage. We will run the ratio at several loan amounts and tell you which approach fits. See also our Utah jumbo DSCR page. If you are deciding between a luxury home and a small apartment building, send both and we will compare them.
Yes, from about $1.5M to $5M+ on high-value 1-8 unit rentals in Provo, Orem, Lehi, Alpine, Highland and the rest of the county.
Because the rent on a long-term lease is small relative to the payment on a large loan. Lower leverage, a larger down payment or a sub-1.0 DSCR program are the usual answers, and some investors choose a small apartment building instead.
Often, yes. Several units of rent support a large payment better than one lease, which is why eight-unit buildings near BYU and UVU are common jumbo files.
Often. Larger balances get more review, and maximum LTV varies by program. Expect higher reserve requirements as well.
It can, if the home is leased long-term as a tenant's primary residence. Vacant, second-home and short-term rental use usually do not qualify.
On some programs, where the use is legal. Many Utah County cities and HOAs limit short-term rentals, so check first.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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