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Did you know Utah has the youngest population of any US state? Combine that with a booming tech sector, nicknamed the “Silicon Slopes,” and you have a strong rental market driven by job growth, migration, and high demand.
For foreign investors, this makes Utah an ideal place to generate consistent rental income. And with HomeAbroad’s DSCR loan, you don’t need a US credit score, tax returns, or even a visa to qualify. The property’s rental income speaks for itself.
Whether you’re considering a ski-town rental in Park City, a student-friendly fourplex in Provo, or a long-term single-family home in Salt Lake City, Utah offers strong rental yields and long-term growth, especially for foreign nationals using HomeAbroad DSCR loans.
Table of Contents
Key takeaways:
1. DSCR loans in Utah allow international investors to qualify based on the property's rental income, eliminating the need for personal income verification.
2. Utah’s growing cities like Salt Lake City, Provo, and St. George offer strong rental demand, rising home values, and solid returns, making it a hotspot for real estate investment.
3. DSCR loans provide flexible financing for all property types, including single-family homes, condos, townhomes, multi-family units, and Airbnb properties.
4. HomeAbroad streamlines the process from start to finish, helping you find high-yield properties, a tailored DSCR Loan, form a US LLC, set up a bank account, and close remotely without ever setting foot in the US.
What is a DSCR Loan for Foreign Nationals?
A Debt-Service Coverage Ratio (DSCR) loan is a mortgage option designed for international real estate investors, allowing them to qualify based on a property’s rental income rather than their personal earnings.
I recently worked with a foreign investor who struggled to secure financing because he didn’t have a standard salaried job in the US. 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 between 0 - 1. This flexibility provides more financing options for real estate investors. However, this will require a slightly larger down payment (a 5% hit to LTV) and a higher interest rate.
DSCR Loan Requirements in Utah for Foreign Nationals
Compared to traditional lenders, HomeAbroad offers a simplified DSCR loan process designed specifically for International investors in US real estate.
Whether you’re living overseas or working in the US without a credit history, our flexible guidelines, remote closing support, and investor-focused terms make it easier to enter Utah’s growing property market.
Here’s how our DSCR loan requirements for foreign nationals stack up against other lenders:
| Features | HomeAbroad DSCR Loan | Other Lenders |
|---|---|---|
| DSCR Ratio | >= 1 for best terms, <1 eligible with higher down payment. We provide DSCR Loans for foreign nationals at a DSCR ratio as low as 0.75, which means you are eligible even if your rental covers just 75% of the mortgage | Usually 1.2 and above, which means the property must generate 20% more income than expenses. |
| Credit Score | You can qualify without a US credit score. We underwrite the loan based on your property’s rental income, not personal income. | Other lenders require you to have a minimum credit score of 620. Many lenders also do not consider foreign credit reports. |
| Down Payment | Low down payment of 25%, which gives you higher leverage and leaves more capital free for other investments. | About 30 – 35%, which increases your upfront cost. |
Additional DSCR Loan Requirements Foreign Nationals Should Know
Beyond DSCR ratio, down payment, and credit score, there are a few more requirements and considerations that can significantly impact your ability to qualify for a DSCR Loan as an international real estate investor.
- No Income Verification Required: Unlike banks and other conventional lenders that demand tax returns or job history, we qualify you purely on projected rental income.
- Flexible ownership structures: Purchase in your name or set up a US LLC, whichever suits your legal and tax strategy.
- Lower cash reserve requirements: We typically ask for 6 months of reserves, while others may demand up to a year’s worth.
- Remote closing support: You can complete the entire process from your home country.
- US bank account assistance: We also help you open an account for rent collection and mortgage payments.
HomeAbroad has helped countless global 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 an H-1B Visa Holder from the UK Secured a Rental Property in Utah
David Thompson, a British national working in Salt Lake City on an H-1B visa, wanted to invest in a rental property near Park City after seeing the area’s year-round tourism boom. But like many recent immigrants, he ran into a wall, his limited US credit history and non-permanent resident status made traditional financing nearly impossible.
The Solution: HomeAbroad’s DSCR Loan
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.
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.
- Loan Amount: $420,000
- Interest Rate: 7%
- Loan Term: 30 year fixed rate
- Monthly Rental Income: $4,067
- Time to Close: 29 Days
Why This Worked for David
- No US Credit History Needed: As a UK expat on an H-1B visa, David didn’t have a US credit profile, but the DSCR loan focused solely on the rental income of the Utah property.
- Strong Monthly Returns: The duplex in Salt Lake City generated $969 in monthly cash flow, giving David both income and confidence to plan his next investment.
- Expert Guidance: From deal analysis to closing, HomeAbroad’s loan specialist guided David through every step, making the process stress-free and transparent.
Jason Saylor,
Sr. Customer Loan Specialist, HomeAbroad LoansTop 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 | 4.3% |
Provo | Long Term | 3.7% |
Park City: The Luxury Vacation Rental Hub
Park City is a favorite among affluent travelers and ski tourists, driving strong rental demand year-round. With high nightly rates and low vacancy during peak seasons, it’s a prime market for investors seeking high-income potential from vacation rentals.
- Median Home Price: $1,541,932
- Average Rent: $3,671
What this means for investors: Park City’s premium rental rates allow DSCR loan borrowers to meet income requirements more easily, even with fewer occupancy days. Ideal for investors targeting high-end short-term stays.
Investment Properties Listed Today on Sale in Park City
Salt Lake City: The Economic and Rental Core
Utah’s capital combines a strong job market with rising tourism and steady population growth. This balance fuels demand for both short-term and corporate rentals, especially near downtown and university zones.
- Median Home Price: $571,623
- Average Rent: $1,713
What this means for investors: Salt Lake City provides a stable, urban market for short-term rental investors who want consistent bookings and long-term property value appreciation.
Investment Properties Listed Today on Sale in Salt Lake City
St. George: The Affordable Desert Retreat
Known for its warm climate and proximity to national parks, St. George attracts retirees and outdoor lovers alike. Its growing population and low competition make it a solid market for long-term rental investments.
- Median Home Price: $524,649
- Average Rent: $1,895
What this means for investors: Lower property prices and reliable tenant demand make St. George a good fit for long-term investors aiming for stable monthly income and DSCR qualification.
Investment Properties Listed Today on Sale in St. George
Provo: The Student-Family Hybrid Market
Home to BYU and a growing tech presence, Provo blends student housing demand with rising interest from young families and professionals. It’s a well-rounded market for steady, long-term rental income.
- Median Home Price: $486,996
- Average Rent: $1,527
What this means for investors: With consistent demand and a built-in tenant base, Provo supports long-term cash flow, making DSCR loan qualification more predictable and manageable.
Investment Properties Listed Today on Sale in Provo
Specific Considerations for Investing in Utah for Foreign Nationals
Utah’s real estate market offers promising opportunities for global investors, but understanding the state’s unique dynamics is key to long-term success. From local regulations to climate considerations and tax structures, a thoughtful approach is essential.
Here are the most important factors to keep in mind:
– Land Use and Zoning Restrictions
Utah cities like Salt Lake City and Provo have specific zoning rules that impact what types of properties you can rent and how. While long-term rentals are generally permitted, short-term rentals face tighter regulations. Some cities require licenses, limit the number of nights, or restrict rentals in certain zones—especially in tourist-heavy areas.
– Seasonal Rental Demand and Economic Anchors
Utah’s rental income can fluctuate based on seasonality, especially in ski towns like Park City or college towns like Logan. However, steady demand from universities, hospitals, and a growing tech sector helps balance those seasonal dips. Understanding your property’s local rental cycle is key to maintaining strong DSCR ratios.
– Taxes and Withholding for Foreign Owners
Utah has a flat state income tax, but foreign investors should also account for federal tax obligations, including FIRPTA (Foreign Investment in Real Property Tax Act). HomeAbroad can help coordinate with tax professionals to ensure you’re set up correctly from day one.
– HOA Rules and Community Restrictions
Many newer developments and suburban communities in Utah are governed by homeowners’ associations (HOAs). These may restrict rental activity, especially short-term stays, and often have rules around property upkeep, signage, and parking. Always review HOA covenants carefully before buying.
– Water Usage and Drought Resilience
Water scarcity is a growing concern in Utah. While this may not affect rental demand immediately, long-term sustainability and regulations around landscaping or water usage could impact property costs and desirability. Drought-tolerant landscaping or compliance with water-efficiency codes may become increasingly important.
Strategic & Future Considerations for Foreign Nationals Investing in Utah
Utah is quietly emerging as a high-potential market for foreign real estate investors. Strong population growth, business-friendly policies, and expanding infrastructure are shifting demand beyond Salt Lake City and into neighboring counties. For investors looking at long-term opportunities, Utah offers both stability and upside.
Here are some future-facing factors foreign nationals should take into account:
1. Tech and Talent Migration: Utah is becoming a magnet for tech companies and remote workers, especially in the “Silicon Slopes” area between Salt Lake City and Provo. As high-paying jobs cluster in these regions, demand for quality housing, especially rentals, continues to rise. Investors targeting these zones are well-positioned for both rent growth and equity appreciation.
2. Salt Lake City’s Urban Redevelopment Push: The capital is undergoing major zoning changes and mixed-use redevelopment projects aimed at increasing density and walkability. This opens opportunities in multi-family and smaller urban infill properties, especially near TRAX lines and commercial corridors. Staying ahead of zoning changes can give investors a first-mover advantage.
3. Energy Efficiency and ESG Appeal: Utah is increasingly emphasizing sustainability in new developments. Properties with energy-efficient features (solar panels, smart HVAC, EV charging) are more attractive to both renters and future buyers. They may also qualify for local incentives, which can improve your net return.
4. Exit Strategy and Tax Planning: Foreign nationals should consider long-term tax implications, capital gains treatment, and possible use of 1031 exchanges through entities. Structuring your investment with an LLC or trust from the start can streamline future exits.
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!
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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