Want to invest in real estate in Utah? Traditional mortgages can be a hassle with income verification and paperwork. But what if you could secure a mortgage without W-2s, tax returns, or personal income verification? That’s where a DSCR loan comes in.
A DSCR loan allows real estate investors in Utah to qualify based on a property’s rental income rather than their personal income. This makes it easier to scale your portfolio while keeping the financing process simple and hassle-free.
With strong demand in Salt Lake City and Provo, Utah is a prime market for both long-term and short-term rental investments. A DSCR loan offers the flexibility to finance cash-flowing properties without the traditional income hurdles.
Get a personalized DSCR loan quote today and take the next step toward your Utah real estate investment.
Table of Contents
Key takeaways:
1. DSCR loans in Utah allow investors to qualify based on the property's rental income, eliminating the need for personal income verification.
2. DSCR loans provide flexible financing for all property types, including single-family homes, condos, townhomes, multi-family units, and Airbnb properties.
3. DSCR loans provide flexible financing for all property types, including single-family homes, condos, townhomes, multi-family units, and Airbnb properties, etc.
What is a DSCR Loan?
A Debt-Service Coverage Ratio (DSCR) loan is a financing option designed for real estate investors, allowing them to qualify based on a property’s rental income rather than their personal earnings.
I recently worked with an investor who struggled to secure financing because he didn’t have a standard salaried job. With our DSCR loan, he qualified based on his property’s cash flow alone and successfully purchased a multi-family unit in Utah. This kind of flexibility is what makes DSCR loans a prime choice for investors looking to scale their real estate portfolios.
Since DSCR loans prioritize rental income over personal financials, their interest rates are typically 1%-2% higher than traditional mortgages. Check the latest DSCR loan interest rates here.
How to Calculate the DSCR Ratio?
The Debt-Service Coverage Ratio (DSCR) measures a property’s ability to cover its debt obligations using rental income. A higher DSCR indicates that a property generates more income than needed for loan payments, making it a strong candidate for financing.
Here is the DSCR Formula:
HomeAbroad looks for a minimum DSCR of 1 or higher to qualify, ensuring the rental income is sufficient to cover loan payments. For properties with lower DSCRs, we offer No-Ratio DSCR loans, allowing investors to qualify with a DSCR as low as 0.75. This flexibility provides more financing options for real estate investors.
DSCR Loan Requirements in Utah
HomeAbroad offers tailored DSCR loans for both domestic and international investors, focusing on rental income instead of personal financial documents for qualification. Here are the key requirements for each:
| Features | Domestic Investors | Global Investors |
|---|---|---|
| DSCR Ratio | 1 or Higher (No Ratio DSCR Program Available) | >= 1 for best terms, <1 eligible with higher down payment |
| Credit Score | Minimum 620 | No US credit needed |
| Down Payment | 20% | 25% |
| LTV Ratio | Up to 80% for Purchase and Rate/Term Refinance, Up to 75% for Cash Out Refinance | Up to 75% for Purchase and Rate/Term Refinance, Up to 70% for Cash Out Refinance |
| Cash Reserves | 2 months | 6 months |
| Property Use | Investment properties (residential and commercial) | Investment properties (residential and commercial) |
| Loan Amount | $75K – $10M | $75K – $10M |
HomeAbroad has helped countless investors secure DSCR loans in Utah, whether they’re first-time buyers or seasoned real estate investors expanding their portfolios. With deep expertise in DSCR financing, we ensure a seamless Investment journey from application to closing.
Where We Lend DSCR Loans in Utah
- Salt Lake City
- Park City
- Cedar City
- Provo
- West Jordan
- Sandy
- Ogden
- St. George
- Orem
- Lehi
- Murray
- Taylorsville
Case Study: How a Utah Investor Secured a DSCR Loan Without Income Verification
David, an experienced real estate investor in Provo, wanted to expand his rental portfolio and generate additional passive income. Instead of going through the extensive paperwork of a traditional mortgage, he opted for a DSCR loan with HomeAbroad.
With the guidance of Jason Saylor, a Loan Specialist at HomeAbroad, he secured a DSCR loan that allowed him to qualify solely based on the property’s rental income, making the process smooth and hassle-free.
Property Details:
Location: Provo, Utah
Property Value: $525,000
Monthly Rental Income: $4,067
Loan Details:
Loan Amount: $420,000
Down Payment: $105,000 (20%)
Interest Rate: 7.0% (fixed for 30 years)
Loan Term: 30 years
Mortgage Payment (PITIA): $3,129
DSCR Calculation:
DSCR Formula: Gross Rental Income ÷ PITIA
DSCR: $4,098 ÷ $3,129
DSCR: 1.3
With a DSCR of 1.3, David’s investment property not only covered its mortgage expenses but also generated a positive cash flow of $969 per month. Thanks to HomeAbroad’s seamless DSCR loan process and expert guidance, he expanded his portfolio without the hurdles of traditional income verification.
Many investors, like David, have strong rental properties but struggle with traditional loan requirements. With a DSCR loan, we focus on the property’s income potential rather than personal financial documents, making the process much simpler. At HomeAbroad, we ensure investors get the right financing to scale their portfolios seamlessly.
Jason Saylor Sr. Customer Loan Specialist
Top Places to Invest in Utah with a DSCR Loan
City | Rental Type | Rental Yield |
|---|---|---|
Park City | Short Term | 9.24% |
Salt Lake City | Shor Term | 7.41% |
St. George | Long Term | 4.2% |
Provo | Long Term | 3.8% |
Need help finding the right investment property? Our AI-driven investment property search platform can help you discover high-performing rentals in Utah or anywhere in the US.
Get a HomeAbroad DSCR Loan in Utah
HomeAbroad simplifies real estate investing with DSCR loans tailored for both US and global investors. With competitive rates and flexible terms, we help you secure financing based on your rental income, rather than requiring personal income verification.
Our AI-powered property search tool connects you with high-potential investment opportunities, while our expert agents provide guidance at every step. From LLC formation and US bank account setup to property management, we offer end-to-end support to make investing seamless.
Get a DSCR loan with HomeAbroad today and start building your real estate portfolio in Utah with confidence!
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FAQs
Are DSCR loans available for Airbnb properties in Utah?
Yes, DSCR loans can be used to finance Airbnb or vacation rental properties in Utah. These loans are a great option for those looking to invest in high-demand rental markets. However, it’s important to check local short-term rental regulations, as some areas may have specific rules regarding Airbnb properties.
Can I live in a home that I bought with a DSCR loan in Utah?
No, DSCR loans are specifically designed for investment properties, meaning you cannot use them to buy a primary residence. These loans are approved based on the property’s rental income, and lenders expect them to be used for generating rental revenue.
Is it hard to get a DSCR loan in Utah?
Getting a DSCR loan in Utah is generally easier than securing a traditional mortgage since it doesn’t require income verification, tax returns, or employment history.
At HomeAbroad, we ensure the reliability of our content by relying on primary sources such as government data, industry reports, firsthand accounts from our network of experts, and interviews with specialists. We also incorporate original research from respected publishers when relevant. Discover more about our commitment to delivering precise and impartial information in our editorial policy.
AirDNA: https://www.airdna.co/vacation-rental-data/app/us/illinois
Zillow: Housing Data – Zillow Research
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