HELOC Loans in Utah
Home Equity Line of Credit (HELOC)
Utah homeowners can leverage a HELOC (home equity line of credit) to unlock their property’s value and access funds as needed during a draw period. Whether you're renovating in Salt Lake City or covering tuition in Provo, HELOCs provide flexibility for recurring or phased expenses. Most Utah lenders require at least 15%–20% equity and a credit score of 620 or higher. Home equity loans, offering a one-time lump sum with fixed rates, are also available for borrowers who prefer predictable payments. Local credit unions, banks, and online lenders in Utah offer competitive rates and flexible repayment terms tailored to your needs.
How to qualify
To obtain a quote, we will need the following information:
Property Value and
Purchase Price
Down Payment
Amount
Credit Score
Asset Types
- Single Family Homes
- Townhomes
- Condos
- 2 - 4 Units (Duplex, Triplex, Quadplex)
- Multi-Family: 5 - 8 Units
- Mixed-Use: 2 - 8 Units
- Multi-Family: 9+ Unit
Loan Terms
- Loan Sizes:
$100k up to $3.5 Million (Larger loan sizes available on a case by case basis)
- Purchase LTV:
Up to 85%
- Rate & Term Refinance LTV:
Up to 80%
- Cash Out Refinance LTV:
Up to 80%
- Amortization:
30 Year % 40 Year Amortization Options Available
- Term Lengths:
5/6 ARMs, 7/6 ARMs, 10 Year Interest Only, 30 Year Fixed & 40 Year Fixed
- Floor Rate:
5.50% (subject to change daily due to market volatility)
- Full Recourse
with personal guarantee required for all borrowers with majority ownership (typically 20%+ or 25%+ if closing in an Entity)
- DSCR Requirement: 1.00x or greater depending on loan size and property type. Sub-1.00x DSCR and NO DSCR options available.
- Vesting:
Lending to Individuals, LLCs, and Corporations. Trusts Allowable on a Case by Case Basis.
- Average Time to Close:
14 to 35 days
Wondering if you qualify for investment property financing in your area?
We offer lending services in all 50 states!
Frequently Asked Questions
What is a HELOC and how does it differ from a home equity loan?
A HELOC in Utah is a revolving credit line backed by your home’s equity. You borrow as needed during the draw period and repay over time. In contrast, a home equity loan provides a lump sum with fixed payments and rates. Choose based on your spending timeline and payment preferences.
How do HELOC rates work and what affects the interest rate?
HELOC rates in Utah are typically variable and based on the prime rate. Your actual rate depends on credit score, income, loan-to-value ratio, and the lender’s terms. Some lenders offer fixed-rate conversion options or intro rate promotions. Compare at least three lenders to find the best rate.
Can I qualify for a home equity loan in Utah with low credit?
Yes, it’s possible to qualify for a home equity loan in Utah with low credit, especially if you have strong equity and stable income. Most lenders prefer a score above 620, but some credit unions and alternative lenders may consider scores in the 580–620 range with higher rates and more documentation.
How much equity do I need in my home to get a HELOC?
Utah lenders typically require at least 15%–20% equity to qualify for a HELOC. This means your loan-to-value ratio should be 80%–85% or lower. Lenders also consider your credit history, income, and existing debt. Higher equity may unlock better rates or larger credit limits.
Are home equity loans in Utah better for large expenses?
Yes, home equity loans in Utah are ideal for one-time expenses such as major renovations, medical bills, or debt consolidation. They offer fixed rates and predictable payments. If your funding needs are recurring or unpredictable, a HELOC may be more suitable.
What are typical equity rates and loan terms in Utah?
In Utah, HELOC APRs generally range from 7% to 10% depending on equity, credit, and lender. Most HELOCs feature a 10-year draw period followed by a 10- to 20-year repayment phase. Home equity loans offer fixed terms ranging from 5 to 30 years.
