Hard money lenders in Utah: usury, licensing, foreclosure speed and costs
Utah in one sentence, from the lender’s chair: utah offers lenders rate freedom, a four-to-six-month trustee sale with no redemption, and an attorney-or-title-company trustee requirement — with a deficiency capped at fair market value and a strict three-month deadline to sue for it.
| Foreclosure process | Non-judicial |
|---|---|
| Typical time to sale | 4 to 6 months from first notice or filing |
| Post-sale redemption | There is no right of redemption after a trustee’s sale in Utah. |
| Deficiency judgment | Allowed, with limits |
| Usury | Utah has no usury cap for loans with a written agreement, so hard money pricing is unrestricted; the Utah Consumer Credit Code governs consumer transactions but not business-purpose real estate loans. |
| Transfer tax | Utah has no real estate transfer tax and no mortgage tax; only recording fees apply. |
| Median home price (approx.) | $520,000 · property tax about 0.55% |
Interest rate limits in Utah
Utah has no usury cap for loans with a written agreement, so hard money pricing is unrestricted; the Utah Consumer Credit Code governs consumer transactions but not business-purpose real estate loans.
This summarizes publicly available statutes and common practice; it is not legal advice, and the rules change. Lenders and borrowers should verify with counsel in the state.
Licensing requirements for lenders and brokers
Utah requires a mortgage entity license under the Utah Residential Mortgage Practices and Licensing Act for residential mortgage lending, with an exemption for loans made for business purposes to entities on non-owner-occupied property; the Division of Real Estate administers licensing and lenders should document the exemption. Check licensing claims against the state regulator and NMLS, and apply the twelve questions in how to find hard money lenders.
How fast a lender gets the property back in Utah
Ask any hard money lender what they underwrite after the collateral and they will say the exit — and after the exit, the time it takes to get the property back. Utah runs a non-judicial process: Utah deeds of trust are foreclosed by a trustee who must be a Utah attorney or title company. The trustee records a notice of default and mails it within ten days; after three months, it records and publishes a notice of sale for three weeks, posts it on the property and at the county recorder’s office, and sells the property at least ten days after the last publication. Expect 4 to 6 months to a sale in an ordinary case.
There is no right of redemption after a trustee’s sale in Utah. After a judicial foreclosure, the borrower may redeem within 180 days of the sale.
A Utah lender may sue for a deficiency after a trustee’s sale, but the judgment is limited to the amount by which the debt exceeds the property’s fair market value at the time of sale (or the sale price, if higher). For the borrower’s protections and the full process, read the Utah foreclosure page; for the lender-borrower dynamics at default, this guide.
Costs on the way in and out
Utah has no real estate transfer tax and no mortgage tax; only recording fees apply. A flip pays this twice — once buying, once selling — so it belongs in the deal budget from the first spreadsheet. Property taxes run about 0.55% of value a year in Utah (roughly $2,860 on the $520,000 median) and accrue through the holding period.
Utah closings use title and escrow companies; buyer closing costs of about 2% to 3% of the price cover escrow, lender’s title policy, lender fees and prepaids, and sellers customarily pay for the owner’s policy.
Utah investor markets
Salt Lake City, Provo-Orem, Ogden and St. George are the investor markets; the Wasatch Front’s price growth compressed flip margins and shifted investors toward new construction, ADUs and small multifamily, while St. George is a growth and second-home market.
Treat this as a starting list for research, not a recommendation. Every metro above has neighborhoods where flips lose money.
Frequently asked questions
Is hard money lending legal in Utah?
Yes. Utah has no usury cap for loans with a written agreement, so hard money pricing is unrestricted; the Utah Consumer Credit Code governs consumer transactions but not business-purpose real estate loans. Utah requires a mortgage entity license under the Utah Residential Mortgage Practices and Licensing Act for residential mortgage lending, with an exemption for loans made for business purposes to entities on non-owner-occupied property; the Division of Real Estate administers licensing and lenders should document the exemption.
How fast can a hard money lender foreclose in Utah?
About 4 to 6 months in an ordinary case (non-judicial process), plus any cure or notice periods the loan documents add. There is no right of redemption after a trustee’s sale in Utah.
What does a typical hard money loan cost in Utah?
Rates of 9% to 14% and 1 to 4 points are the national range. As an illustration only: $442,000 borrowed at 11% with 2 points for nine months is about $45,308 in interest and points, plus fees and carrying costs. See rates, points and LTV.
Related guides
- Hard money for beginners: your first loan, step by step
- How hard money lenders evaluate ARV — and how to estimate it yourself
- Hard money exit strategies: sell, refinance, or hold — and the plan B
- Hard money default: what happens, how fast, and how to avoid it
Other Utah pages: first-time home buyer programs in Utah · foreclosure in Utah.