Hard Money Loan Utah

Last updated: May 19, 2025

At OfferMarket, our mission is to empower Utah real estate investors to build wealth through strategic property investments. To support your journey in Utah’s dynamic real estate market, we provide a comprehensive platform:

💰 Private lending tailored for Utah investors
☂️ Insurance rate shopping with local coverage options
🏚️ Access to off-market properties across Utah’s urban and suburban areas

Our Hard Money Loan Utah program is designed to deliver fast, dependable, and affordable financing solutions to purchase, refinance, and renovate 1-4 unit residential investment properties throughout Utah. Whether your plan is to flip a home in Salt Lake City or rent out a duplex in Provo, we’re ready to support your success.

Let’s dive into the OfferMarket Hard Money Loan Utah Program!

What is a hard money loan?

A hard money loan is a short-term loan secured by a tangible asset—in this case, Utah residential real estate with 1-4 units. This financing helps you purchase, refinance, and rehab properties to either sell for profit or retain as rental investments in Utah’s growing housing market.

Often called “bridge loans” or “fix and flip loans,” these hard money loans are a favorite among Utah investors for their flexibility and speed.

Hard money loan scenarios in Utah

Utah real estate investors commonly use hard money loans for:

• Buying and renovating older or distressed homes in neighborhoods like Ogden or Salt Lake City, avoiding tying up too much of their own cash

• Refinancing cash purchases of properties needing rehab in fast-growing areas like Draper or St. George

• Refinancing existing hard money loans to complete renovations on properties in redevelopment zones such as downtown Salt Lake

• Buying off-market homes below market value in Utah’s competitive markets with no rehab plans, aiming to resell “as-is”

• Refinancing cash buys with no renovation, leveraging equity for the next investment opportunity

• Refinancing loans after rehabs to gain more time for sale or longer-term financing

How it works

A hard money loan consists of two parts:

Initial Advance – funds allocated toward the purchase price, wired directly to the title company at closing.

Construction Holdback – funds reserved for rehab, disbursed through draw reimbursements as work progresses.

You can choose to use either or both components, depending on your project needs in Utah’s market. Many investors use both to maximize leverage while minimizing out-of-pocket cash.

Your exit strategy may be to flip the property for a quick profit or rent it and refinance into a longer-term loan, such as a Utah DSCR loan. Market fluctuations in Utah often influence which path is best, so flexibility is key.

For instance, you might plan to BRRRR (Buy, Rehab, Rent, Refinance, Repeat) in Salt Lake but switch to flipping if rental demand softens or housing prices surge unexpectedly.

Another example: expecting a quick flip, but if the Utah housing market cools, renting and refinancing into a DSCR loan might offer a better financial outcome, giving you options for when to sell later.

Focusing on projects with dual exit strategies helps mitigate risk in Utah’s diverse real estate markets.

Who uses hard money loans in Utah?

• Fix and flip investors targeting Utah’s high-demand neighborhoods

• Rental property investors using the BRRRR method to capitalize on Utah’s strong rental markets

• Investors blending strategies depending on opportunities and market conditions across Utah’s urban and suburban regions

We also offer a Fix and Rent bundle, combining a hard money loan for purchase and rehab with a discounted DSCR refinance loan—ideal for Utah’s evolving real estate investor needs.

Hard Money Loan Program Guidelines

Project Eligibility in Utah

We prioritize your success and risk management in Utah’s real estate market. Historically, fewer than 0.5% of our loans have defaulted or resulted in foreclosure. Heavy rehab projects, especially for less experienced Utah borrowers, carry higher risk due to potential delays, cost overruns, and market changes.

Our goal is to be your trusted capital provider and advisor, helping you navigate Utah’s market safely. Below is our rehab scope classification system and eligibility guidelines tailored for Utah projects.

Initial Advance

Initial advance amounts depend on borrower experience, credit, and deal specifics. We consider recent Utah investment activity and rehab track record.

If the purchase price exceeds our appraisal or valuation’s As-Is value opinion, we base advances on the As-Is value, not contract price.

Exit strategy also impacts the advance. Sales require a minimum 30% gross margin and $15,000 profit projection. Rentals and refinances need a minimum DSCR of 1.1.

For properties with rural designations outside Utah’s urban hubs, advances are limited, and higher experience levels are required.

Experience-based Tiers

Initial Advance by Tier

*85% available by exception for excellent credit and liquidity Utah borrowers.

Adjustments to Initial Advance

Rehab scope classification

Rehab scope eligibility

LTARV Limits

LTFC Limits

Loan-to-Full-Cost (LTFC) limits apply to rehab scopes classified as Extensive, meaning the rehab budget is equal to or greater than the purchase price or As-Is value of the property. An LTFC limit of 85% means the lender funds 85% of the total project cost (purchase price plus rehab budget), with the borrower responsible for the remaining 15%. This ensures Utah borrowers maintain significant equity in high-risk projects.

Example: No Experience

• Purchase price: $100,000

• Tier: 1 (0 similar verifiable experience)

• Credit score: 695

• Rehab budget: $24,000

• ARV: $150,000

• Initial advance: $75,000 (75%)

• Construction holdback: $24,000

• Total loan amount: $99,000

• LTARV: 66%

• LTFC: 79.8%

• Interest accrual: Full boat

  Example: No Experience, Excellent Credit

• Purchase price: $100,000

• Tier: 1 (0 similar verifiable experience)

• Credit score: 750

• Rehab budget: $24,000

• ARV: $150,000

• Initial advance: $80,000 (80%)

• Construction holdback: $24,000

• Total loan amount: $104,000

• LTARV: 69.33%

• LTFC: 83.9%

• Interest accrual: As disbursed

  Example: 5 Experience

• Purchase price: $100,000

• Tier: 4 (5 similar verifiable experience)

• Credit score: 750

• Rehab budget: $20,000

• ARV: $150,000

• Initial advance: $90,000 (90%)

• Construction holdback: $20,000

• Total loan amount: $110,000

• LTARV: 73.33%

• LTFC: 91.67%

• Interest accrual: As disbursed

Refinance using As-Is value instead of Cost Basis for Initial Advance

Our underwriting approach prioritizes lending within your cost basis—meaning purchase price plus sunk costs—to ensure Utah borrowers maintain “skin in the game.”

For refinance scenarios involving seasoned Utah properties where the As-Is value exceeds cost basis, and you seek leverage against this value for renovation, OfferMarket requires:

• Property must be habitable, with an appraisal condition rating of C4 or better

• Property seasoned at least 3 years

• Payoff statement without default interest, extension fees, or late fees

• Credit score minimum 680

• Experience Tier 3 or higher (at least 4 similar verifiable rehab projects)

• Strong support for As-Is value > cost basis through local sale comps

• Supportive scenario such as a vacant rental requiring renovation for resale

Transactions involving wholesalers and price run-ups

If a transaction involves a wholesaler, the entire assignment fee or price increase can be included in the value basis for initial advance, up to 20% above the original purchase price between the wholesaler and seller (owner of record). Borrowers must cover any price run-up beyond this limit.

For example:

• A-B Contract (seller to wholesaler): $100,000

• B-C Contract (wholesaler to buyer, including assignment fee): $125,000

• As-Is value: $125,000

• Value basis for initial advance: $120,000

  Wholesaler transaction guidelines for Utah loans:

• Assignment fee or double-close price run-up up to 20% of A-B purchase price can be included

• Financing not allowed if the property was previously listed on MLS

• Full chain of contracts and wholesaler’s operating agreement required

• Finder or referral fees not financed

• Transaction must be arms-length

Construction Holdback

The construction holdback in Utah loans is released through draw requests and reimbursement based on verified progress against your scope of work.

If you have the liquidity to fund rehab costs upfront, you may opt out of the construction holdback.

For loan amounts $100,000 or greater, interest is only charged on funds disbursed (“As Disbursed” interest accrual).

Appraisal and In-house valuation for Utah properties

Valuation is required for all OfferMarket hard money loans. Depending on the property and scenario, a 3rd-party interior appraisal, exterior appraisal, or in-house valuation may be requested.

In-house valuation eligibility

OfferMarket reserves the right to require interior or exterior appraisal at its discretion.

Exterior appraisal is accepted for

• REO sales

• Foreclosure auctions

• Sheriff’s sales

• Online auctions

• Bankruptcy sales

Exterior appraisals must be within 120 days of settlement. If older than 120 but less than 180 days, re-certification is required.

Interior appraisal is required for all other cases

OfferMarket orders appraisals via appraisal management companies. Borrowers are responsible for appraisal invoice payment.

Appraisal Transfer

Appraisals not ordered by OfferMarket may be transferred if:

• Ordered via approved AMC

• Less than 180 days old at closing

• Re-certified if 120-179 days old

• Transferring lender provides signed transfer letter certifying AIR compliance, appraisal report (pdf & xml), and proof of payment

Scenario: Stabilized Hard Money Loan Utah

For properties with no deferred maintenance and an appraisal condition rating of C4 or better, OfferMarket will fund up to 75% of the As-Is value. These stabilized properties are ready to rent or sell in Utah’s market.

Key Loan Details for Utah Hard Money Loans

Extensions

Hard money loans in Utah are designed as short-term financing solutions, typically 12 to 24 months. Most Utah loans are paid off well within 12 months. While extending your hard money loan is possible, it is not ideal and should be avoided when possible because extensions incur fees, additional interest, and increase the risk of foreclosure if the loan remains unpaid beyond the extension period.

To avoid the need for an extension on your Utah hard money loan, focus on the following:

• Partner with experienced general contractors who have strong Utah references and proven track records

• Avoid overly aggressive rehab scopes relative to your experience and available liquidity

• Account for Utah’s permitting and zoning processes, which can sometimes be slower depending on the municipality

• Ensure you have immediate and full access to the property (no tenant holdovers or lease complications)

• Have a well-defined dual exit strategy that includes options to sell or refinance

Addressing these factors significantly reduces the risk of delays and the need to extend your loan term in Utah’s competitive real estate environment.

Extension Limits

If you are unable to repay your Utah hard money loan by the original maturity date, you may request an extension for up to 50% of your original loan term. Extensions are available in increments of 3 or 6 months as detailed below.

Extension Terms and Fees

Extension fees will be added to your payoff statement based on the following fee schedule:

Extension Prerequisites

Before an extension is approved on a Utah hard money loan, you must confirm that your builder’s risk insurance policy will remain active for the entire duration of the extension period. Maintaining proper insurance coverage protects your project and aligns with underwriting requirements.

Ineligible Property Types

The following property types are not eligible for funding under the Utah hard money loan program:

• Mixed-use properties

• Multifamily buildings with 5 or more units

• Condotels and co-ops

• Mobile or manufactured homes

• Commercial properties such as retail, office, or industrial buildings

• Cabins or log homes commonly found in Utah’s mountain resort areas

• Properties with oil or gas leases

• Operating farms, ranches, or orchards

• Vacation or seasonal rental properties

• Unique, exotic, or luxury homes

• Properties accessed solely by unpaved or dirt roads

Exception Scenarios

The following scenarios may qualify for exceptions under the Utah program guidelines:

• Guarantors with credit scores between 660 and 679

• Leasehold or ground rent properties

• Single-family properties between 500 and 699 square feet

• 2-4 unit properties with one or more units between 400 and 499 square feet

• Funding initial advance based on an As-Is value higher than the cost basis

• Non-arm's-length transactions under specific conditions

• Financing of interest payments

Borrower and Guarantor Requirements

Liquidity Verification

To ensure adequate liquidity, OfferMarket verifies that guarantors have at least the estimated cash to close plus 25% of the rehab budget in liquid assets under their control. Eligible liquid assets include:

• Personal and business bank accounts

• Brokerage accounts in personal or business name

• Retirement accounts in personal name (subject to 50% reduction)

No business bank account is strictly required, but having one is recommended for better accounting and risk management.

Credit and Background Items

• If three credit scores are returned on a tri-merge report, the middle score is used. If two scores are returned, the lower score is used.

• If no mortgage tradelines exist or fewer than five tradelines appear on the credit report, six months of interest reserves are required.

• Bankruptcy or foreclosure must be at least 4 years prior to settlement date; between 4 and 7 years may require interest reserves.

• Recent late mortgage payments or outstanding balances may result in denial or require explanations.

• Involuntary liens, judgments, or pending civil lawsuits require resolution or explanations prior to funding.

• Pending criminal lawsuits, financial crimes, or serious repeated offenses disqualify applicants.

Interest Reserves

Interest reserves are collected at closing and held in escrow to cover interest payments during rehab. These reserves are drawn down before monthly payments begin.

Financed Interest Payments

To preserve liquidity and protect credit during rehab, Utah borrowers may qualify to finance interest payments. This means accrued interest is added to the payoff balance instead of monthly payments during the loan term.

Example:

• Loan amount: $100,000

• Interest rate: 12%

• Months held: 9

• Accrued interest: $9,000

• Payoff statement includes principal $100,000 + unpaid interest $9,000

Property Sourcing Guidelines

Key points for sourcing properties in Utah for hard money loans:

• New market transactions require a General Contractor agreement or explanation if none is needed

• Properties with prior price escalations, wholesale deals, or non-arms length sales require thorough documentation

• Projects involving condos, conversions, or extensive rehabs require architect or engineer letters or permits

• All submissions must include purchase contracts, settlement statements, payoff letters, borrower track record, and entity formation documents

Insurance Guidelines for Hard Money Loans Utah

Protecting your investment with appropriate insurance is critical. Hard money loan insurance (Builder’s Risk or Fix and Flip insurance) covers physical property damage and liability for properties under construction, vacant, or in poor condition.

Coverage Details

• AM Best rating A- VIII or better

• Special Form policy type

• Deductibles between $1,000 and $5,000

• Lender listed as mortgagee and additional insured

• No exclusions for windstorm, hail, or named storms

• 30-day cancellation notice

💡 Utah Pro Tip: Immediately after closing, install smoke detectors, secure locks, and surveillance cameras to comply with insurance requirements and reduce claim denials.

Frequently Asked Questions

What states does OfferMarket fund hard money loans in?

OfferMarket funds hard money loans across a wide range of states, including Utah. Here is the full list of states we currently serve:

Arizona*
Alabama
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Mississippi
Missouri
Minnesota*
Montana
Nebraska
Nevada*
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota*
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota*
Tennessee
Texas
Utah
Vermont*
Virginia
Washington
Washington DC
West Virginia
Wisconsin
Wyoming

(*) In states where an NMLS license is required for business-purpose lending or where we do not directly lend, OfferMarket operates as a rate shopping service and refers your loan to a licensed capital provider.

Can I do more than one hard money loan at a time?

Yes. It is common for Utah investors and others nationwide to have multiple hard money loans simultaneously. We prioritize risk management and will collaborate with you to ensure your liquidity and project pace support additional loans safely.

Are hard money loans commercial?

Yes. Hard money loans are classified as “business purpose” loans because they are issued to your business entity (LLC or corporation), qualifying them as commercial loans.

What is the minimum loan amount?

The minimum loan amount is $25,000.

Which property types are eligible?

We finance non-owner occupied 1-4 unit residential properties, including single-family homes, townhomes, small multifamily buildings (2-4 units), and warrantable condominiums.

Note: 2-4 unit mixed use, 5-9 unit mixed use, and 5-9 unit multifamily properties are not eligible under this program but may be available through other OfferMarket loan programs.

10+ unit residential and non-residential commercial properties (retail, office, industrial) are also not eligible.

How do you calculate Loan-to-Value (LTV)?

For hard money loans, LTV usually means loan-to-after-repair value (LTARV). The initial advance is based on the lower of the As-Is value and the purchase price in your contract (or previous closing price if refinancing). LTARV is calculated by dividing the total loan amount (initial advance plus construction holdback) by the estimated value after repairs, determined via appraisal or in-house valuation.

What are the credit requirements?

A minimum FICO score of 680 is required. Borrowers with credit scores between 660 and 680 may be considered on a case-by-case basis. We review credit scores of all borrowing entity members personally guaranteeing the loan; members not guaranteeing are not evaluated.

What are the experience requirements?

Experience is not mandatory, but verified experience with completed projects of similar or larger scope enables higher leverage through our tiered system. Documentation such as settlement statements and operating agreements may be requested to verify your track record.

Does being a wholesaler count towards experience?

No. Wholesaling does not count because you are not financially responsible for successfully completing the rehab on the subject property.

What documentation is required?

We use a streamlined Loan File system to expedite processing. Required documents include:

Purchase Transaction Requirements

Refinance Transaction Requirements

Are there special requirements for loans over $1 million?

Yes. For loans over $1 million (up to our $2 million maximum), additional guidelines include:

Glossary of Key Terms

Instant Hard Money Loan Quote Utah

OfferMarket Capital LLC is a leading private lender specializing in hard money loans and DSCR loans for Utah 1-4 unit residential real estate investors. Our mission is to help you build wealth through Utah real estate, providing fast, reliable financing tailored to your investment goals.

Thousands of Utah real estate investors trust OfferMarket monthly. Membership is free and includes:

💰 Private lending
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🏚️ Off market properties
💡 Market insights

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