DSCR Loans in Utah

How can Utah have one of the lowest property tax rates in the country, about 0.48%, and still post some of the weakest ratios? Because a $535K typical home rents for only about $1,700. Most Utah rentals are long-term appreciation holds, and the honest loan for many of them is no-ratio.

$535K
Median Home Price
$1,700/mo
Median Monthly Rent
0.51x
Est. DSCR at Median
70+
Lenders in Network
Match Me With a Utah Specialist

Utah DSCR Loan Market

Utah shows why a low tax rate cannot save a rental priced for appreciation. The effective property tax rate is about 0.48%, one of the lowest in the country, and insurance is modest at about $151 a month. But the typical home costs about $535K with rent near $1,700, so a median rental at 20% down lands far below 1.0.

Investors buy here anyway because of the fundamentals: a young, growing population, a strong job market along the Wasatch Front, and landlord-friendly law with a fast eviction process. Ogden and Weber County trade below Salt Lake and Utah County, with Hill Air Force Base supporting demand, which is why the sample deal below is an Ogden home on a no-ratio loan. Provo adds BYU and a large student market.

Park City is the premier short-term rental market, built on ski season and summer tourism, with its own licensing rules. Utah's primary residential exemption covers long-term rentals that are a tenant's primary home, but not short-term rentals.

LANDLORD-FRIENDLY STATE

Top Investor Cities

  • Salt Lake City
  • Provo
  • Ogden
Effective Property Tax Rate
0.48%

Monthly tax on $535,000 property: $214/mo

DSCR Loan Requirements in Utah

Licensing & Regulatory

Loans in Utah are originated by a licensed DSCR broker matched to your state. The matched broker holds the required state license; DSCRBroker.com is not the originator.

All lending decisions and terms are determined solely by the matched broker and their wholesale lending partners.

Common Property Types

  • Single-Family Rentals
  • Condos/Townhomes
  • Short-Term Rentals

Down Payment & LTV

  • Standard DSCR: 20% minimum down (80% LTV)
  • No-Ratio DSCR: 30% minimum down (70% LTV)
  • 30%+ down unlocks No-Ratio DSCR programs and broader lender access

Appraisal & Rent Schedule

  • Form 1007 rent schedule required with appraisal
  • Appraisal estimates market rent for DSCR calculation
  • STR properties: AirDNA projected income accepted

Sample DSCR Deal in Ogden, Utah

3-bed / 2-bath SFR

Purchase in Ogden, Utah

DSCR
Purchase Price $400,000
Down Payment 30% ($120,000)
Loan Amount $280,000
Loan Type 30-Year Fixed No-Ratio DSCR

Monthly Breakdown

Principal & Interest $1,957
Property Tax $160
Insurance $200
Total PITIA $2,317
Monthly Rent $1,950
DSCR Ratio
0.84x
Monthly Cash Flow
-$367
Close Time
27 days
DSCR = $1,950 รท $2,317 = 0.84x

This borrower closed in 27 days with no income verification, no tax returns, and no employment check.

Results may vary. This is a representative example, not a guarantee of future performance.

This deal example is for illustrative purposes only and is based on representative scenarios across our broker network. Actual loan terms, approval, and closing depend on your full credit profile, property details, appraisal, and the matched lender's specific guidelines. This is not a loan offer or commitment to lend.

DSCR Loan Questions for Utah Investors

A long-term rental usually does, which surprises investors from other states. Utah's residential exemption, which taxes primary residential property on 55% of its value, can apply when the property is the primary residence of whoever lives there, including a long-term tenant. Short-term rentals and second homes do not qualify and are taxed on full value. Counties may ask you to document the use. Your matched specialist should confirm the property's status with the county before relying on the lower bill.

In the right zones, with a license. Park City and Summit County allow nightly rentals in many resort-oriented areas and restrict them in others, and many HOAs set their own rules. The market is strongly seasonal, with ski season and summer doing most of the work. Because short-term rentals do not get Utah's primary residential exemption, the tax bill runs higher than on a long-term rental. Confirm the license path for the exact unit, and underwrite the shoulder seasons honestly.

Because a typical Ogden home does not produce enough rent to cover a DSCR payment at today's prices, and pretending otherwise would not help you. A no-ratio loan does not require the rent to cover the payment. The lender relies on your down payment, credit, and reserves instead, and the investor carries the monthly gap in exchange for long-term appreciation. That trade only makes sense with reserves and a long hold. If you want cash flow, look at small multifamily.

It is one of the steadier ones in the state. Hill is one of Utah's largest employers, with a big civilian workforce plus service members, and it supports rental demand across Davis and Weber counties. Ogden trades well below Salt Lake City, which makes it the most practical entry point on the Wasatch Front. Turnover clusters in summer. Qualify on market rent from the appraisal, not housing allowance tables, and buy homes that civilian tenants would rent too.

Already eyeing a property in Utah?

Bring the address or just a price range. Your matched specialist will run the ratio, flag what the lender will ask for, and structure the file around the rent. 2 minutes. No SSN. No credit pull.

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Loans in Utah are originated by a licensed DSCR broker matched to your state. The matched broker holds the required state license; DSCRBroker.com is not the originator. The matched broker is not affiliated with DSCRBroker.com except as a participating broker in our matching network. All lending decisions and terms are determined solely by the matched broker and their wholesale lending partners.