DSCR Loan Utah

Last updated: November 21, 2024

Utah DSCR Loans

OfferMarket has experience working with hundreds of Utahns that make living through real estate investing. Their property portfolios span from the Wasatch Front to Washington County to the Great Basin and touch every property class out there. OfferMarket's extensive experience underwriting Utah DSCR loans allows us to foresee unique circumstance that may arise in the process of issuing loans in the state.

Unique features of underwriting Utah DSCR Loans

For example, during underwriting of a DSCR loan in the name of an LLC, a document certifying that the LLC is current with all state taxes is necessary. In many states this document is called "Certificate of Legal Existence" or "Certificate of Status". However Utah, does not provide those documents and instead provides a documents called "Certificate of Good Standing". We are comfortable guiding Utahns that work with us to providing this document in lieu of "Certificate of Legal Existence". Having worked on enough Utah DSCR loans we are aware of small idiosyncratic issues such as this that may arise and our staff is experienced in navigating them to ensure a smooth and speedy process to bring any lending situations to a favorable resolution.

Favorable environment for Utah DSCR Loans

Utah has a favorable environment to allow Utahn real estate investors to thrive for several reasons. Thriving local economy enabled job and income growth of the residents, growing population increases demand for housing and reasonable free-market promoting legislature enables real estate investors to continue to profitably invest in local communities. For example, Utah does not have rent control and has state law provisions that ban localities from creating their own rent control laws, thus promoting a healthy and organic way for real estate investors to meet real estate needs of local markets without interference of local governments that may distort this balance.

Capital provider demand for Utah DSCR Loans

Given the recent rise in home prices in most Utah housing markets, we are seeing market rents that produce low DSCR at target loan amount (i.e. 80% LTV on purchase, 75% LTV on cash out refi). If maximizing your loan amount is a priority, we can structure your DSCR loan with a 5 or 10 year interest only period which increases cash flow to support a higher loan amount. We are also helping our clients obtain the most competitive landlord insurance to lower premium and boost DSCR.

DSCR Loan vs Utah Banks

Utah banks, like most banks across the country, are not lending for 1-4 unit residential rental properties. Commercial mortgages from banks, if available, are not a sure thing and can take a lot of time given extremely strict and opaque underwriting guidelines which includes income verification (W2, tax returns) and loan committee scrutiny. On the other hand Utah DSCR loans do not face the same requirements to come to completion. OfferMarket's transparent quoting engine will provide a Utahn real estate investor with a DSCR quote in under 1 minute without a credit pull or necessity to provide us with any personal information such as an email or phone. Our quotes are highly competitive and can be converted into a Loan File which will outline detailed Loan Terms and processing documents that will be necessary to receive funding. No opaque requirements or hours on a phone with loan officers, all information is conveniently presented, completely online, in one place.

DSCR Loan vs Conventional Mortgage

Conventional mortgages, capped at 10 per person, are only offering a marginally more competitive interest rate compared to DSCR loans. Even if you have a stable W2 income and strong tax returns, it's difficult to justify the additional processing legwork and extended timeline. In contrast Utah DSCR loans do not require any W-2 verification and are a perfect with for experienced real estate investors that make a living through managing their portfolios full time. Below you will find a table that compares common funding options for real estate investors in Utah.

As you can see from the table above, DSCR loans, in general, have similar rates to Bank or conventional loans while having fewer verification requirements and close at a faster timeline. We often work with Utahn real estate investors that have already exhausted their local funding options that span local credit unions, local banks, local private money or hard money lenders and are looking for additional quotes to compare their existing terms to. In most cases we can present more favorable terms and invite any investors that hasn't have a standing relationship with us to get a 1 minute, no credit pull, no obligation Utah DSCR loan quote from us. We are confident that, in one minute of your time, we will be able to offer you superior terms and give you another viable option to meet your funding needs without wasting any of your time on lengthy phone calls to just get a sense of where the quote numbers will fall.

Common questions regarding Utah DSCR loans

What type of Utah DSCR Loans does OfferMarket offer?

OfferMarket provides DSCR purchase and DSCR refinance loans, as well as fix and rent loans.

What are current Utah DSCR loans rates?

Interest rates have been highly volatile due to changes to the prime rate set by the Federal Reserve Bank of United States. To see the most up to date range of interest rates, please visit our loans page and scroll down to the rates table. To get an exact rate for your specific deal please use our quote engine that will allows you to get a quote in under 1 minutes, without a credit pull or without signing up or providing your email address or a phone number.

What is the minimum DSCR for a Utah DSCR loans from OfferMarket?

Our Utah rental loans require a minimum DSCR of 1.21 for borrowers with credit score below 720. DSCR of 1.11 is applicable to borrower with credit score above 720 (subject to change). To calculate your DSCR, please use our DSCR calculator. To get exact quote in under 1 minute for your specific deal, use our loan quote engine

Are OfferMarket’s Utah DSCR Loans based on rental income?

Eligibility for OfferMarket's Utah DSCR Loans are based on the rental income, as well as our inputs necessary to calculate the DSCR for the property. Additionally, borrowers credit score, overall experience and liquidity play a role in calculating their risk interest spread that is added to the current going 5 year treasury rate to arrive at the loans interest rate. To get an exact figure for your particular deal, take one minute to complete our quote engine quote.

What is the minimum credit score for Utah DSCR loans?

OfferMarket's Utah DSCR loans for purchase or refinance require a minimum qualifying credit score of 680

My credit score is below 680, is there a way to qualify for Utah DSCR loan?

Yes, if your LLC (Trust or corporation), the borrowing entity for the loan, includes another partner with a higher credit score and large ownership percentage of the borrowing entity may make your deal eligible for funding.

What is the minimum loan amount for a Utah Rental Loan from OfferMarket?

OfferMarket Utah DSCR loans require the property to appraise for a minimum amount of $100,000, however the purchase price may be lower than that figure.

What is the minimum down payment for Utah DSCR loans from OfferMarket?

Most qualified borrowers can expect a downpayment of 20% on their Utah DSCR loans. If you want to see exact "Cash to close" in under 1 minute, without a credit pull, use our quote engine to get a quote, and then click "select" at the end of the quote to convert it to a Loan File. Once its converted to a Loan File, you may click on the Loan Terms section and you will see "Cash to close" listed in your Loan Terms. Please note that figure is subject to additional underwriting and may change as appraisal and other information is added to your Loan File in the process of underwriting.

Can OfferMarket provide a Utah DSCR loan for rural properties?

Unfortunately, OfferMarket does not provide Utah DSCR loans for rural properties. In order to check if a property counts as rural, please visit our rural guide and follow the steps there to search and figure out if your property is considered rural.

What is the maximum LTV (Loan-To-Value) Ratio for Utah DSCR loans from OfferMarket?

OfferMarket Utah DSCR loans have a maximum LTV of 80% for the most qualified borrowers. If the loan purpose is a refinance, maximum LTV of 75% is applicable.

Can I get a Utah DSCR loan from OfferMarket for a multi-unit property in Utah?

Yes, we specialize on 1-4 unit properties.

Can I live in one of the units of a property financed with a Utah DSCR loan from OfferMarket?

No, OfferMarket Utah DSCR loans are strictly for business-purpose, and owner of the borrowing entity or any related party (family member, friend, acquittance) may not occupy the property.

Does OfferMarket extend Utah DSCR loans to first time investors?

Yes, OfferMarket Utah DSCR loans can be issue to first time investors. To get an instant quote, in under one minute, try our quote engine

How is DSCR calculated on a Utah DSCR loans?

To understand exactly the calculation that will be used to calculate DSCR on your Utah DSCR loan please familiarize with our transparent DSCR calculator

Are there prepayment penalties on Utah DSCR loans from OfferMarket?

OfferMarket offers a range of prepayment penalties on the Utah DSCR loans that they provide. There are interest rate trade offs for each prepayment penalty tier that you may choose. Prepayment penalties range from 0-0-0-0-0 (no prepayment penalty, higher interest rate) to 5-4-3-2-1 (5% penalty in first year, 4% in second, and so for with the lowest interest rate).

What documentation is required to get a Utah DSCR loan?

Our online Loan File provides a streamlined way for our borrowers to complete their documentation requirements. Our helpful processing staff will guide you through the process and introduce you to your Loan File, as well as order the most cost effective appraisal for your property. In general, OfferMarket Utah DSCR loans require borrowing entity documents such as articles of incorporation, certificate of good standing, IRS tax number certificate, foreign entity registration if your borrowing entity is not Utah based, ID for every owner of the borrowing entity, operating agreement, credit and background check for each member, updated bank statements, property insurance, loan application, appraisal and a few more documents regarding the property depending on if its a purchase or refinance.

Are condos eligible for Utah DSCR loans from OfferMarket?

Yes, Utah DSCR loans may be issues against condos.

DSCR loan interest rates for rental properties in Utah are highly competitive.