DSCR loans by state

DSCR Loans in Utah

Utah has consistently ranked among the fastest-growing states, driven by a young demographic (highest birth rate nationally), the "Silicon Slopes" tech corridor (Qualtrics, Pluralsight, Domo), and outdoor recreation attracting transplants. The Wasatch Front (SLC to Provo) concentrates most of the population and economic activity. St. George in southern Utah is growing rapidly as a retirement and recreation destination.

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What is a DSCR loan?

A Debt Service Coverage Ratio (DSCR) loan is a type of investment property mortgage where the borrower qualifies based on the property's rental income rather than personal income. Lenders calculate the DSCR by dividing the property's gross rental income by the total debt obligation (principal, interest, taxes, insurance, and HOA). A ratio of 1.0 means the property breaks even; most lenders require a DSCR of 1.0–1.25 to approve the loan.

Because DSCR loans do not require W-2s, tax returns, or employment verification, they are popular among self-employed investors, LLC-based portfolios, and foreign nationals. Typical terms include 30-year fixed or adjustable rates, 75–80% LTV, and minimum credit scores of 660–700. State-level factors like property taxes, insurance requirements, and landlord-tenant laws directly affect the DSCR calculation and vary significantly across markets.

Utah Property Taxes & DSCR Impact

Utah has one of the lowest effective property tax rates in the nation at approximately 0.55%. The state uses a "taxable value" that is 55% of market value for residential property, keeping effective rates low even as home prices have risen.

Very low property taxes (~0.55%) and cheap insurance create an excellent expense profile. However, rapid home price appreciation (SLC median $500,000+) has compressed rent-to-price ratios. Ogden, West Valley City, and Provo suburbs offer better DSCR outcomes with lower entry points and still-strong demand.

Utah Landlord-Tenant Laws

Utah is very landlord-friendly. No rent control exists. Eviction for nonpayment requires a 3-day notice, and the court process is fast — often completing in 2–3 weeks. Utah law provides strong protections for landlord property rights.

Utah Income Tax for Investors

Utah has a flat 4.65% state income tax (reduced from 4.85% in recent reform). The state has been gradually reducing the rate. Rental income is taxable at this rate.

Insurance Costs in Utah

Insurance costs are low, averaging $900–$1,500 per year. Utah has minimal natural disaster risk — no hurricanes, limited tornado exposure, and generally low flood risk. Earthquake risk along the Wasatch Fault is a consideration but rarely priced into standard policies.

Top Investor Markets in Utah

•Salt Lake City
•Provo-Orem
•Ogden
•St. George
•West Valley City

Licensing Requirements

Utah requires mortgage lenders and brokers to be licensed through the Utah Division of Real Estate.

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