Hard Money Loans for Short-Term Rentals in Utah

Frequently Asked Questions

What are hard money loans and how do they work for real estate investors?

Hard money loans are short-term real estate loans secured by the property rather than the borrower’s financials. In Utah, they are frequently used for short-term rental purchases, rehab projects, and fast refinances. These loans typically span 6 to 36 months and include interest-only payments. Approval is based on the asset’s value and your exit strategy—not your credit score, W-2 income, or tax returns. Utah investors choose hard money for speed, simplicity, and flexibility when timing matters most.

When should an investor consider using a hard money loan instead of a conventional loan?

Utah investors should consider hard money loans when traditional lending is too slow, too strict, or simply not aligned with the project. This includes scenarios involving distressed properties, auction purchases, or borrowers without full financial documentation. If you’re using an LLC or need to close within days, hard money provides a solution based on the deal—not your personal financials. It’s the go-to tool when execution speed is more important than traditional loan terms.

What makes hard money different from other types of financing?

Hard money loans stand out because they prioritize the real estate asset and investment plan—not the borrower’s credit or income. In Utah’s fast-paced housing markets, hard money enables closings in days rather than weeks. Unlike banks, which require exhaustive documentation, hard money lenders approve based on deal quality. While the rates are higher, investors gain speed, flexibility, and certainty—perfect for flips, transitional rentals, or creative deal structures that don’t meet conventional guidelines.

What are the typical loan terms for a hard money loan?

In Utah, hard money loans typically run from 6 to 36 months with interest-only payments. Loan-to-value ratios can reach up to 85% for purchases and 80% for refinances. Origination fees and reserves vary depending on project type and borrower experience. These loans are built for short-term strategies—like flips, cash-out refinances, and transitional rental purchases. With closings in 3 to 10 business days, Utah investors gain a major edge in highly competitive and seasonal real estate environments.

How quickly can a hard money lender close a deal?

Utah hard money lenders can typically close deals in 3 to 10 business days, depending on title readiness and documentation. This fast timeline is critical in competitive markets like Salt Lake City, Park City, or vacation zones in southern Utah. Because the underwriting is based on the property and exit plan—not income or credit—the process is efficient. Hard money offers Utah investors the speed needed to secure deals before they’re lost to slower-moving buyers or conventional financing delays.

Can I get a hard money loan in Utah with poor credit or no income documentation?

Yes. In Utah, investors can qualify for hard money loans with poor credit or limited income documentation. These loans are evaluated on the property and exit strategy, not personal financials. While Utah enforces usury limits and licensing requirements, most business-purpose loans are exempt from consumer protections. To ensure a secure, transparent transaction, work with a licensed lender that clearly discloses all terms and complies with state lending regulations.

Explore hard money loans and other STR loans in neighboring states like Nevada and Colorado to grow your portfolio beyond Utah.