You do not need to be fully ready today. But giving yourself several months to improve credit, build savings, and create a plan can make the process much easier when it is time to buy.

Here are five things you can start doing now if you want buy a home in 2027.

1. Review Your Credit Early

If you plan to buy a home in 2027, start by reviewing your credit.

Look for:

• Reporting errors
• High credit card balances
• Late payments
• Accounts that may need attention

The goal is not to guess at what might help your score.

Have a mortgage professional review your situation and help you build a strategy based on what is actually on your credit report.

Strategy beats guessing.

2. Practice Your Future Mortgage Payment

Estimate what your future housing payment might look like and start practicing now.

For example, if your future mortgage payment could be $300 more than what you currently pay, automatically move that extra $300 into savings each month.

This does two things:

• Helps you see how the future payment fits your budget
• Builds additional savings for your home purchase

If the payment feels uncomfortable now, that is useful information to learn before you are under contract.

3. Cut Back on One Spending Habit

You do not have to stop enjoying your life just because you want to buy a house.

Pick one spending habit to temporarily cut back.

If you spend around $7 a day, five days a week, that adds up to more than $1,800 over a year.

That could become part of your:

• Down payment
• Closing costs
• Emergency fund
• Moving expenses

Small changes can turn into real money surprisingly quickly.

4. Consider Skipping One Big Expense

If homeownership is the bigger goal, think about postponing one major expense this year.

Maybe that is a big vacation, a new car, or the annual family Disneyland trip.

Future-you may enjoy getting the keys to your home a little more than present-you enjoys spending two hours in line for Space Mountain.

You do not have to cut everything.

Sometimes skipping one splurge is enough to move the bigger goal forward.

5. Build Your Homebuying Plan Now

The biggest mistake is waiting until you are ready to make an offer before figuring out what you need.

If you want to buy a home in 2027, creating a plan now gives you time to:

• Improve your credit
• Save more money
• Reduce debt
• Review down payment options
• Solve income or employment issues
• Understand what monthly payment feels comfortable

And if everything already looks great?

Even better. You will know where you stand long before the right home shows up.

Planning to Buy a Home in 2027?

You do not need to be ready to buy today.

You just need enough time to prepare.

At Houzd Mortgage, we can review your credit, income, savings, and goals and help you build a personalized plan for buying a home in 2027.

Reach out to our Houzd Mortgage team and tell us you are planning for 2027. We will help you figure out what to work on now so you are ready when the time comes.

The post 5 Things to Do Now If You Want to Buy a Home in 2027 appeared first on Houzd.

At Houzd Mortgage, complex loan scenarios are kind of our thing.

As a mortgage broker, we are not limited to one bank or one set of loan programs. We can shop across multiple lenders and look for financing that fits the borrower instead of trying to force every borrower into the same box.

What Is Creative Mortgage Financing?

Creative mortgage financing does not mean bending the rules.

It means understanding the available mortgage programs well enough to find a legitimate financing strategy for borrowers whose situation may not fit a traditional loan.

That can include borrowers who are:

• Self-employed
• Paid through commissions or bonuses
• Real estate investors
• Retired or living primarily from assets
• Buying before selling another home
• Using rental income
• Purchasing an unusual property
• Managing multiple businesses or income sources
• Unable to qualify using traditional income documentation

Sometimes the solution is a conventional mortgage.

Other times, it may be a bank statement loan, asset depletion program, DSCR loan, bridge loan, HELOC, non-QM mortgage, or another specialized financing option.

Why Can a Mortgage Broker Offer More Options?

Banks typically lend using their own products and underwriting requirements.

A mortgage broker can work with multiple lenders.

That means if one lender does not have a program that fits your situation, we may be able to look somewhere else rather than simply ending the conversation.

Different lenders can have different rules regarding:

• Self-employed income
• Credit scores
• Debt-to-income ratios
• Investment properties
• Asset-based qualification
• Recent employment changes
• Property types
• Loan amounts

Access to more lenders gives us more opportunities to solve the problem.

Creative Mortgage Financing for Self-Employed Borrowers

Self-employed borrowers are one of the most common examples.

Your business may be doing extremely well, but your tax returns may not show the same income that actually flows through the business.

Traditional underwriting can sometimes make that difficult.

Depending on the situation, alternative programs may allow us to evaluate things such as bank deposits, business cash flow, assets, or other income sources instead.

The goal is to understand how you actually earn money and then determine which mortgage program best fits that structure.

What If Another Lender Already Said No?

A mortgage denial does not always mean you cannot qualify.

Sometimes it simply means you did not fit that lender’s guidelines.

If another bank or mortgage company has told you no, it may be worth getting a second opinion.

We can review the reason the loan was declined and determine whether another program or lender could approach the situation differently.

Sometimes there is another solution.

Sometimes there isn’t.

But complex scenarios are usually worth reviewing before giving up.

Need Creative Mortgage Financing in Utah?

If your mortgage situation is straightforward, great.

If it is complicated, that is where we tend to have the most fun.

At Houzd Mortgage, we specialize in finding solutions for borrowers who do not always fit neatly into traditional mortgage guidelines.

If you are self-employed, an investor, asset-rich, buying before selling, or simply have a unique situation, reach out to our Houzd Mortgage team.

Tell us what you are trying to accomplish, and we will help you figure out what financing options may be available.

Creative mortgage financing in Utah is what we do.

The post Creative Mortgage Financing in Utah for Complex Loan Situations appeared first on Houzd.

Utah has plenty of scenic drives paired with short walks, waterfalls, lakes and overlooks. Here are six of our favorites for an easy family fall adventure.

1. Alpine Loop + Cascade Springs

The Alpine Loop may be one of the best all-around fall drives in Utah.

Start in American Fork Canyon, follow the Alpine Loop toward Sundance and Provo Canyon, and make time for a stop at Cascade Springs.

The short boardwalk trails wind past clear pools, streams and small waterfalls. Add golden aspens, red maples and mountain views, and this one is hard to beat.

Best timing: Mid-September through early October.

Good to know: The Alpine Loop is narrow and winding, and some recreation sites require a Forest Service pass. The road is seasonal.

2. Big Cottonwood Canyon + Silver Lake + Guardsman Pass

For families coming from Salt Lake City, this might be my favorite.

Drive Big Cottonwood Canyon to Brighton and stop for a walk around Silver Lake. The mostly level boardwalk loop gives you lake views and fall color without much elevation gain.

Then continue up and over Guardsman Pass toward Park City for even more mountain views.

You get a lake, an easy walk and a scenic drive in one trip.

Best timing: Mid-September at higher elevations, with colors usually moving down the canyon later in September and into early October.

Good to know: Guardsman Pass is a seasonal road and typically closes when winter weather arrives. UDOT lists it among Utah’s seasonal mountain routes.

3. Nebo Loop + Grotto Trail

If you want big fall scenery with fewer Cottonwood Canyon crowds, try the Nebo Loop Scenic Byway.

The route runs between Payson and Nephi through forests filled with aspens and colorful maples, with several overlooks along the way.

Add a stop at the Grotto Trail, a short forest walk that leads to a small waterfall tucked inside a rocky grotto.

Best timing: Late September through early October.

Good to know: The Nebo Loop climbs above 9,000 feet, so early snow can affect access.

4. Mirror Lake Scenic Byway + Provo River Falls

The Mirror Lake Scenic Byway gives you a ridiculous amount of scenery for surprisingly little effort.

Head east from Kamas on Highway 150 toward the Uintas. Stop at Provo River Falls, where a short roadside walk gives you several views of the cascading river.

Continue toward Mirror Lake for a picnic or relaxed walk surrounded by mountains and aspens.

Basically, nature does most of the work on this one.

Best timing: September. Because the road climbs above 10,000 feet, fall arrives earlier here than it does in the Salt Lake Valley.

Good to know: Mirror Lake Highway is seasonal, so check conditions before heading up.

5. Logan Canyon + Tony Grove Lake

For a northern Utah option, drive Logan Canyon on Highway 89 and make the side trip up to Tony Grove Lake.

The drive combines limestone cliffs, colorful canyon walls and high-elevation aspens.

Once you reach Tony Grove, there is a roughly 1.3-mile nature trail around the lake, making it a manageable family walk with a pretty impressive payoff.

Best timing: Mid-September through early October.

Good to know: Tony Grove is a fee area, and access at this elevation is seasonal.

6. Cedar Breaks + Highway 143

Southern Utah deserves a spot on the list too.

Drive from Cedar City toward Cedar Breaks National Monument, Brian Head and Highway 143. The combination of bright yellow aspens and red rock around Cedar Breaks almost looks fake.

Cedar Breaks sits above 10,000 feet, so you can get huge views without committing to a major hike.

Continue toward Panguitch Lake and Duck Creek for more easy family stops and picnic opportunities.

Best timing: Usually mid-September through early October near Cedar Breaks, with color appearing somewhat later at lower elevations.

Good to know: Check the weather before leaving. High-elevation conditions can change quickly. State Route 148 is seasonal, although it is currently open as of September 2026.

Our Favorite Fall Drives From Salt Lake City

If you only have time for one family-friendly fall outing in Utah, our top three from Salt Lake City would be:

1. Big Cottonwood Canyon + Silver Lake + Guardsman Pass
2. Alpine Loop + Cascade Springs
3. Nebo Loop + Grotto Trail

All three give you a lot of fall-color payoff without turning Saturday into an endurance event.

When Is the Best Time to See Fall Colors in Utah?

Utah’s fall colors generally begin at higher elevations in September and gradually move into lower elevations.

However, peak color can shift by a week or two depending on elevation, temperatures and storms.

Before heading into the mountains, check current weather and UDOT seasonal road conditions. Several of these routes including: Guardsman Pass, Alpine Loop, Mirror Lake Highway and Cedar Breaks, close seasonally.

The post 6 Best Family-Friendly Fall Outings in Utah appeared first on Houzd.

New conventional mortgage guidelines are changing how condominium projects are reviewed. Beginning in 2027, one of the biggest changes will be stricter requirements around how much money condo associations set aside for future repairs and major expenses.

That could matter when it comes time for the next buyer to finance your condo.

What Is Changing for Condos in 2027?

Beginning with applicable loan applications dated January 4, 2027, Fannie Mae is increasing its replacement-reserve requirement for condo projects undergoing a Full Review.

Today, an HOA budget generally needs to allocate at least 10% of its annual assessment income toward replacement reserves.

That minimum is increasing to: 15%

In other words, a condo association that meets today’s financing requirements may not necessarily meet the same requirements in 2027.

Fannie Mae has also strengthened its requirements when an HOA uses a reserve study to demonstrate that it has adequate reserves.

Why Could This Matter If You Want to Sell Your Condo?

Most condo owners don’t think about their HOA’s reserve budget when they put their home on the market.

Buyers’ lenders do.

When someone buys a condo using conventional financing, the lender may need to review not only the buyer but also the condo project itself.

That can include things such as:

• HOA finances and reserves
• Insurance coverage
• Deferred maintenance
• Special assessments
• Delinquent HOA dues
• Pending litigation
• Overall project eligibility

If a project doesn’t meet the applicable requirements, financing the units within that project can become more difficult.

And fewer financing options can mean a smaller pool of potential buyers.

Does This Mean Every Condo Should Be Sold Before 2027?

No.

Plenty of Utah condo communities are financially healthy and may have no problem meeting the updated requirements.

Some associations may already be contributing 15% or more toward reserves. Others may have an acceptable reserve study or take steps to adjust their budgets before the new requirement takes effect.

So this is definitely not a prediction that condo values are going to fall in 2027.

But if you have already been thinking about selling your condo, the upcoming changes are another reason to have that conversation sooner rather than later.

Selling a Utah Condo? Check the HOA Before You List

Before you sell your condo, it may be worth finding out how your HOA currently looks from a mortgage-financing perspective.

A few simple questions can tell us a lot:

How much is the HOA contributing to reserves?

Does the project have a recent reserve study?

Are there any major special assessments or deferred-maintenance issues?

Does the project currently qualify for conventional financing?

Finding out before accepting an offer is much better than discovering a financing problem three weeks into a transaction.

Thinking About Selling Your Condo?

If you own a condo in Utah and have been debating whether to sell, 2026 may be a good year to explore your options.

That doesn’t necessarily mean you need to put it on the market tomorrow.

It does mean it is worth understanding how the upcoming 2027 financing changes could affect your condo project and the buyers who may eventually want to purchase your unit.

Reach out to the Houzd Mortgage team. We can help you review the financing side of your condo project and connect you with a real estate professional who can help you understand your selling options.

Sometimes the best first step isn’t listing the condo.

It’s simply finding out where you stand.

The post Sell Your Condo Before 2027? Here’s Why It May Be Worth Considering appeared first on Houzd.

That matters because a home-sale contingency does not always have to remain a home-sale contingency.

If you are a listing agent and receive an otherwise strong offer that depends on the buyer selling their current home first, it may be worth having the financing reviewed before your seller automatically says no.

What Is a Home-Sale Contingency?

A home-sale contingency means the buyer needs to sell their current property before they can complete the purchase of the new home.

From the seller’s perspective, that creates another layer of uncertainty.

Even if the buyer is well qualified, the transaction may depend on:

• Their current home going under contract
• Their buyer getting approved
• The appraisal working
• Their sale closing on time

That can make a contingent offer less attractive than an offer that does not depend on another home selling first.

Can a Bridge Loan Remove a Home-Sale Contingency?

Sometimes, yes.

A bridge loan for a home purchase is short-term financing that can help a homeowner access funds or equity from their existing property before it has sold.

The Consumer Financial Protection Bureau specifically describes bridge financing as a type of temporary loan that can be used when someone purchases a new home and plans to sell their existing home afterward.

Depending on the buyer’s situation, that can potentially allow them to:

Buy the new home first → move → sell their existing home afterward.

If the buyer no longer needs their current home to close before buying the new property, the original home-sale contingency may be able to come out of the offer.

What Does a Buyer Need to Qualify?

Bridge financing will not work for every buyer.

The lender still needs to review the complete financial picture.

Some of the biggest factors include:

• Equity in the current home
• Current mortgage balance
• Income
• Credit
• Available cash
• New mortgage payment
• Existing mortgage payment
• Bridge loan structure
• Expected proceeds from the eventual sale

Traditional mortgage guidelines can also require the lender to account for multiple housing payments.

For example, Fannie Mae generally requires a lender to document that a borrower using bridge financing can carry the payments associated with the current home, new home, bridge loan and other obligations.

So this is not simply a matter of saying, “They have equity. Done.”

We need to run the numbers.

Why Listing Agents Should Review the Financing Before Rejecting the Offer

Imagine your seller receives two offers.

One is lower but has no home-sale contingency.

The other is a strong offer at the price your seller wants, but the buyer needs to sell another home first.

It is easy to immediately focus on the contingency.

But what if that second buyer has:

• $250,000 of equity in their current home
• Strong credit
• Stable income
• Enough financial strength to purchase before selling

A bridge financing strategy may potentially turn that contingent buyer into a much cleaner buyer.

That can preserve a transaction that otherwise may have been rejected before anyone explored the financing.

Bridge Loans Can Also Help Buyers Compete

This strategy is not only useful after an offer has been submitted.

Buyers who already know they need to sell a home can sometimes explore bridge financing before they start writing offers.

That may allow them to shop with more confidence and potentially make offers that are not dependent on selling their current home first.

For buyers in competitive markets, that can be a significant advantage.

A Contingent Offer Is Worth One Conversation

Not every home-sale contingency can be solved with a bridge loan for a home purchase.

Sometimes the equity is not there or maybe the the buyer cannot qualify while carrying the additional obligations. Or sometimes selling first really is the right answer.

But if the offer is otherwise strong, it is worth checking before everyone walks away from a potentially good transaction.

Before Your Seller Says No, Send Us the Scenario

If you are a Utah listing agent and receive an offer contingent on the buyer selling their current home, send the scenario to Houzd Mortgage before automatically rejecting it.

We can review the buyer’s equity, income and available funds and determine whether there may be a way for them to purchase first and sell afterward.

If the numbers work, the buyer may be able to come back with a cleaner offer and give your seller more certainty.

It will not work every time.

But it is worth one conversation before your seller says no.

The post Bridge Loan for a Home Purchase: A Way to Rescue a Contingent Offer appeared first on Houzd.

“Should we reduce the price?”

Sometimes the answer is yes.

But before automatically cutting the listing price, it is worth asking a different question:

Would the same money make a bigger difference if it were used to lower the buyer’s monthly payment instead?

Right now, many of the homebuyers we talk to are much more sensitive to the monthly mortgage payment than they are to the purchase price itself.

They may like the house at $500,000.

What they really want to know is:

“What is my payment going to be?”

That is where a 2-1 mortgage buydown can potentially make a much bigger impact than a traditional price reduction.

Price Reduction vs. 2-1 Buydown

Consider a $500,000 home.

If the seller reduces the purchase price by $10,000, the buyer may save approximately:

$60 per month

Now compare that with using seller funds toward a 2-1 temporary interest-rate buydown.

The buyer may save approximately:

$627 per month during the first year

That is more than 10 times the monthly impact during year one.

The exact savings will depend on the buyer’s loan amount, interest rate and loan program, but the basic point is important:

A price reduction and a mortgage buydown can cost the seller a similar amount while creating very different experiences for the buyer.

What Is a 2-1 Buydown?

A 2-1 buydown temporarily reduces the interest rate used to calculate the buyer’s mortgage payment during the first two years of the loan.

Typically:

• Year one is calculated at a rate 2% below the note rate
• Year two is calculated at a rate 1% below the note rate
• Year three returns to the full note rate

The buyer still qualifies under the requirements of the actual loan program, but the temporary buydown can significantly reduce the payment during those first two years.

Why Monthly Payment Matters More Than Price

Buyers do not live in a purchase price.

They live in a monthly budget.

A $10,000 price reduction sounds substantial on a listing, but when that reduction is spread across a 30-year mortgage, the monthly savings may be surprisingly small.

That can make it difficult for buyers to actually feel the benefit.

A temporary buydown is different because the savings are concentrated into the first couple of years.

Instead of saying:

“We reduced the price $10,000.”

A listing could potentially advertise:

“Save more than $600 per month during your first year.”

From a buyer’s perspective, that can be a much more compelling number.

Can a Seller Pay for a 2-1 Buydown?

Yes, depending on the loan program and allowable seller concessions.

A seller can often contribute toward the cost of a temporary mortgage buydown as part of the transaction.

The exact amount allowed will depend on factors such as:

• Loan type
• Down payment
• Occupancy
• Purchase price
• Other seller-paid closing costs

That is why it is important to have the lender calculate the numbers before advertising a specific buydown.

A Buydown Can Also Help Market the Listing

The value is not only in the financing.

It can also give the listing agent something new to market.

Instead of another social media post announcing:

“PRICE REDUCED!”

you can show buyers what the seller’s contribution may actually do for their monthly payment.

Marketing could focus on:

• First-year monthly payment savings
• Estimated payment with the buydown
• Comparison with the regular payment
• Total first-year savings
• Seller contribution toward financing

For payment-sensitive buyers, that may get more attention than another small reduction in the asking price.

Houzd Helps With the Cost on Our Partners’ Listings

At Houzd Mortgage, we offer a 1-0 temporary buydown contribution on our participating real estate partners’ listings.

That contribution may also be applied toward a 2-1 buydown, meaning the seller may not have to cover the entire cost of the temporary buydown.

Before reducing the price, we can compare the options side by side.

For example:

Option 1: Reduce the listing price
Option 2: Offer seller-paid closing costs
Option 3: Offer a 1-0 or 2-1 mortgage buydown

Then we can show the seller and listing agent what each option actually does for the buyer.

Should You Reduce Your Listing Price or Offer a Buydown?

There is no single answer for every listing.

If the property is simply priced too high compared with the market, a price reduction may still be the right strategy.

But if the listing is getting attention and buyers are hesitating because of the monthly payment, a mortgage buydown may create a much larger perceived benefit.

Before dropping the listing price, it is worth running both scenarios.

A few minutes of math can show whether $10,000 is better spent reducing the purchase price or reducing the buyer’s payment.

Before You Drop the Price, Let Us Run the Numbers

If you are a Utah real estate agent considering a price reduction on one of your listings, reach out to Houzd Mortgage first.

We can calculate the monthly-payment impact of a price reduction and compare it with a 1-0 or 2-1 mortgage buydown.

We can also create customized marketing materials for the property so potential buyers see the lower-payment opportunity—not just the asking price.

Sometimes the listing does not need a lower price.

It needs a better way to show buyers what they can afford.

Written by Anthony VanDyke, Utah Mortgage Broker — NMLS #247102 — President at Houzd Mortgage in Draper, Utah.

A mortgage broker since 2006, Anthony has helped thousands of Utah families build a stronger financial future, one home at a time. He believes a mortgage isn’t just a loan — it’s a long-term financial strategy that can shape a family’s wealth and peace of mind.

See what you qualify for with Anthony’s Purchase Qualifier Tool.

The post Before You Reduce the Listing Price, Consider a 2-1 Buydown appeared first on Houzd.

Inventory is up. Homes are taking longer to sell. Buyers have more choices, and sellers are facing more competition.

That does not mean the market is falling apart. It means buyers and sellers need to adjust their strategy.

Salt Lake County Housing Market Inventory Is Rising

As of July 2026, there were 3,887 active listings in Salt Lake County.

That represents an increase of:

• 22.5% over the previous three months
• 56.7% over the previous six months

For buyers, that means more homes to choose from and less pressure to make an immediate decision.

At the same time, buyer activity has slowed.

Homes going under contract dropped nearly 20% over the previous three months, while the median time on market increased to 43 days, compared with 39 days a year earlier.

Put simply:

More homes are for sale, buyers are moving more slowly, and there is more room to negotiate.

What the Salt Lake County Housing Market Means for Buyers

If you are buying a home in Salt Lake County, this market may offer opportunities that were much harder to find a few years ago.

More inventory means buyers may have additional leverage when negotiating:

• Purchase price
• Seller-paid closing costs
• Repairs
• Interest-rate buydowns
• Other seller concessions

And those opportunities are not limited to luxury homes.

We are seeing increased inventory across multiple price ranges, including starter homes and move-up properties.

Buyers Should Negotiate the Monthly Payment, Not Just the Price

One of the biggest opportunities in today’s market may not be a lower purchase price.

It may be a lower mortgage payment.

Many buyers are extremely payment-sensitive right now. If a seller is willing to contribute toward closing costs, those funds may be used toward an interest-rate buydown.

That can sometimes create a much larger monthly benefit than using the same amount of money for a small price reduction.

For example, rather than focusing only on whether a seller will reduce the price by $10,000, buyers should also ask:

What could $10,000 in seller concessions do to my mortgage rate and monthly payment?

Depending on the loan program and market conditions, that could be a much more meaningful conversation.

What Sellers Need to Know About the Salt Lake County Housing Market

The other side of rising inventory is increased competition among sellers.

That does not mean homes are not selling.

Good homes that are priced correctly, marketed well, and presented properly can still attract strong interest and multiple offers.

However, buyers now have more alternatives.

That means a home that is overpriced or poorly presented may sit much longer than it would have in a tighter market.

Pricing Matters More in a Market With More Inventory

When buyers have only a handful of homes to choose from, sellers have more room for error.

When buyers have dozens of competing properties available, they can simply move on.

That makes the initial pricing strategy especially important.

Starting too high can lead to:

• More days on market
• Fewer showings
• Multiple price reductions
• Buyers wondering what is wrong with the property
• Eventually selling for less than if the home had been priced correctly from the beginning

If you are selling, work with an experienced local real estate agent who understands your neighborhood and the current competition.

The Salt Lake County Housing Market Is Recalibrating

The Salt Lake County housing market is not in freefall.

It is also no longer the extremely competitive seller’s market buyers experienced a few years ago.

Instead, the market is recalibrating.

Inventory is higher. Homes are taking longer to sell. Buyers have more options, and sellers need to compete more carefully for their attention.

For buyers, that can create opportunities to negotiate price, closing costs, and mortgage-rate buydowns.

For sellers, it means pricing, presentation, and marketing matter more.

Have Questions About Buying or Selling in Salt Lake County?

Every buyer, seller, and property is different.

If you are thinking about buying a home, we can help you understand what current pricing, interest rates, and seller concessions could mean for your monthly payment.

If you are considering selling, we are also happy to help you review the financing side of potential offers or connect you with an experienced local real estate professional.

Reach out to the Houzd Mortgage team and we can help you look at the numbers and build a strategy for today’s market.

The post Salt Lake County Housing Market Is Shifting — What Buyers and Sellers Should Know appeared first on Houzd.

A HELOC for home renovations can be a flexible way for Utah homeowners to use the equity they already have to improve the home they already own.

Instead of taking out one large loan upfront, a Home Equity Line of Credit (HELOC) allows you to access funds as your renovation progresses.

Can You Use a HELOC for Home Renovations?

Yes.

A Home Equity Line of Credit, or HELOC, allows you to borrow against the equity in your home. HELOCs are revolving lines of credit, which means you can generally draw funds as needed up to your approved credit limit.

That structure can work particularly well for renovations because construction expenses rarely arrive all at once.

You may need money for:

• Contractor deposits
• Cabinets and countertops
• Flooring
• Appliances
• Plumbing or electrical work
• A new roof
• Basement finishing
• Bathroom remodeling
• Landscaping
• An addition or major home improvement

Rather than borrowing the entire renovation budget on day one, a HELOC may allow you to draw money as bills come due.

Why Use a HELOC for a Remodel?

One of the biggest advantages is flexibility.

Imagine you are planning a $75,000 kitchen and main-floor renovation.

You might open a $100,000 HELOC but initially need only $20,000 for deposits and materials. Additional funds can then be drawn as different stages of the project are completed.

With a HELOC, you generally borrow against the line as needed rather than receiving the entire amount as one lump sum.

That can be especially useful when your contractor gives you the always-comforting phrase:

“We won’t know until we open the wall.”

Can I Keep My Current Mortgage?

Generally, yes.

A HELOC is commonly structured as a second mortgage, meaning it sits behind your existing first mortgage rather than replacing it.

This can be particularly important for Utah homeowners who already have an attractive rate on their current mortgage.

Instead of refinancing your entire mortgage simply to access renovation funds, a HELOC may allow you to:

Keep your existing first mortgage + add a separate HELOC for the remodel.

Whether that is better than a cash-out refinance depends on your rates, balances, loan costs and how quickly you expect to repay the renovation debt.

How Much Can I Borrow for Home Improvements?

Your available HELOC amount depends primarily on:

• Your home’s current value
• Your existing mortgage balance
• The lender’s maximum combined loan-to-value ratio
• Your credit
• Your income and debts
• The specific HELOC program

For example, assume:

Home value: $700,000
Current mortgage: $400,000
Maximum CLTV: 85%

First:

$700,000 × 85% = $595,000

Then subtract the existing mortgage:

$595,000 – $400,000 = $195,000

In this simplified example, the homeowner could potentially have access to a HELOC of up to $195,000, subject to qualification and the lender’s program requirements.

If you want to dig deeper into the math, read our guide on how much you can borrow with a Utah HELOC.

HELOC vs. Home Improvement Loan

A traditional home improvement or personal loan usually provides a set amount of money upfront.

A HELOC works differently because it provides a revolving credit line secured by your home.

That distinction matters when the final renovation cost is uncertain.

For example, if you borrow $100,000 through a traditional loan but ultimately spend only $70,000, you still borrowed the full amount.

With a HELOC, you may have a $100,000 credit line but only draw the $70,000 you actually need.

However, HELOCs also use your home as collateral and can include variable interest rates, fees and other risks. The Consumer Financial Protection Bureau recommends comparing home-equity financing alternatives and understanding the costs and risks before borrowing.

HELOC vs. Cash-Out Refinance for Renovations

Another common option is a cash-out refinance.

With a cash-out refinance, your existing mortgage is paid off and replaced with a larger new mortgage. The difference is provided to you as cash.

With a HELOC, your existing mortgage generally stays in place.

A HELOC may be worth considering if:

• You like the rate on your existing mortgage
• You do not need all the renovation funds immediately
• Your project will happen in stages
• You want access to additional funds for unexpected costs

A cash-out refinance may make more sense in other situations, particularly when replacing the first mortgage improves the overall financing structure.

There isn’t one answer that works for every homeowner. Comparing both options can help you understand the total payment and long-term cost.

Is a HELOC a Good Idea for Home Renovations?

It can be, particularly when you have substantial equity and want flexibility in when you borrow the money.

Before deciding, ask yourself:

• What is the realistic renovation budget?
• How much equity do I have?
• How quickly will I draw the funds?
• How quickly can I repay the balance?
• What could my payment look like if the rate changes?
• Would a fixed home equity loan be better?
• Would refinancing the first mortgage make sense?

The best financing option isn’t necessarily the one with the lowest advertised rate. It is the one that fits the way you’re actually going to use and repay the money.

Find a HELOC for Your Utah Home Renovation

If you’re considering a HELOC for home renovations in Utah, Houzd Mortgage can help you look at how much equity you may be able to access and compare different financing options.

Whether you’re remodeling a kitchen, finishing a basement, building an addition or tackling the list of projects your house has politely been reminding you about for years, we can help you understand the numbers before you start.

Learn more about our Utah HELOC options and see how much of your home’s equity you may be able to access.

The post Using a HELOC for Home Renovations in Utah appeared first on Houzd.

Owning an investment property in Utah can be a great way to build long-term wealth. However, buying a rental property is different from buying your primary home.

Before you start scrolling through listings and mentally spending your future rental income, it helps to understand the basics.

What Is an Investment Property?

An investment property is real estate purchased to generate income or grow in value.

Common examples include:

• Single-family rental homes
• Condos and townhomes
• Duplexes and other multi-unit properties
• Short-term vacation rentals

Some investors also purchase a home, live in part of it, and rent out the remaining space. This is often called house hacking.

How Do You Finance an Investment Property?

Financing depends on how you plan to use the property.

A traditional investment property loan usually requires a larger down payment than a primary residence. Lenders may also review your credit, income, cash reserves, and expected rental income.

However, you may have additional options when buying a property that will also be your primary residence. For example, someone purchasing a duplex may be able to live in one unit and rent out the other.

The right loan structure depends on the property and your long-term plan.

Calculate More Than the Mortgage Payment

A rental property may produce monthly income, but rent is not pure profit.

Your estimated expenses should include:

• Mortgage principal and interest
• Property taxes
• Homeowners insurance
• HOA fees
• Repairs and maintenance
• Property management
• Possible vacancies

It is also smart to keep money in reserve. Eventually, something will break—and the water heater rarely checks your budget first.

Research the Local Rental Market

Utah is made up of many different rental markets. Demand, home prices, and typical rent can vary by city and neighborhood.

Before buying, research:

• Average rent for similar properties
• Local vacancy rates
• Nearby employment and transportation
• School districts and neighborhood demand
• Planned construction or development

Avoid assuming that a property will rent for a certain amount simply because the listing agent or seller says it will.

Review Local Rental Rules

Rental requirements can vary between Utah cities. Short-term rental rules may also be different from rules for long-term rentals.

Before purchasing, review local zoning, licensing requirements, HOA restrictions, and rental regulations. Utah cities may regulate rental properties and place specific restrictions on short-term rentals or accessory dwelling units.

You should also speak with a qualified tax professional and consider having an attorney review your lease and ownership structure.

Choose the Right Property

The most exciting property is not always the best investment.

Instead, look for a property that fits your budget and has realistic income potential. Consider its location, condition, expected repairs, tenant demand, and ongoing expenses.

The goal is not simply to own another house. The goal is to purchase a property that supports your financial strategy.

Start With a Clear Plan

Before buying an investment property in Utah, decide what you want the property to accomplish.

Are you looking for monthly cash flow? Long-term appreciation? A future retirement asset? A home you can live in while renting out part of it?

Once you know the goal, you can compare financing options and decide how much cash you need to get started.

Let’s Run the Numbers

Real estate investing can be a powerful financial tool, but every property should be reviewed carefully.

At Houzd Mortgage, we can help you compare financing options, estimate the monthly payment, and understand how the property’s expected rental income may affect your qualification.

Contact our team and let’s run the numbers before you make an offer.

The post Investment Property in Utah: A Beginner’s Guide appeared first on Houzd.

The short answer is that it depends on your home value, current mortgage balance and the HELOC lender’s maximum combined loan-to-value ratio, also called CLTV.

Many HELOC programs allow homeowners to borrow up to a certain percentage of their home’s value after accounting for what they already owe.

Let’s break down how that works.

How Is a Utah HELOC Amount Calculated?

One of the most important numbers when qualifying for a HELOC is your combined loan-to-value ratio, or CLTV.

The basic formula is:

Home Value × Maximum CLTV – Current Mortgage Balance = Potential HELOC Amount

For example, suppose:

• Your Utah home is worth $600,000
• Your current mortgage balance is $350,000
• Your HELOC program allows up to 85% CLTV

First, calculate 85% of the home’s value:

$600,000 × 85% = $510,000

Then subtract your current mortgage:

$510,000 – $350,000 = $160,000

In this example, you could potentially qualify for a HELOC of up to $160,000, subject to credit, income and other lender requirements.

What Does CLTV Mean on a HELOC?

CLTV stands for combined loan-to-value.

It looks at all loans secured by your home compared with the home’s value.

If your first mortgage is $350,000 and you add a $100,000 HELOC, you would have $450,000 in total loans secured by the property.

On a $600,000 home:

$450,000 ÷ $600,000 = 75% CLTV

Different HELOC lenders have different CLTV limits.

For example, Mountain America Credit Union currently explains that many lenders limit HELOC borrowing to around 85% CLTV. Some programs may allow more or less depending on the borrower, property and loan structure.

Utah HELOC Examples

Here are a few simple examples using an 85% maximum CLTV:

These are examples only. Your actual available HELOC amount will depend on the specific lender and your qualification.

Can You Borrow 100% of Your Home Equity?

Sometimes, but not with every HELOC program.

Some lenders offer programs allowing homeowners to borrow at higher CLTV levels. America First Credit Union, for example, currently lists home equity products reaching as high as 100% LTV, although pricing and qualification can be different from lower-LTV programs.

That means it is important to compare more than one HELOC option.

A homeowner who is told they cannot access enough equity through one bank may have additional options available elsewhere.

What Else Determines How Much HELOC You Can Get?

Having enough equity is only one part of qualifying.

HELOC lenders may also look at:

• Credit score
• Income
• Debt-to-income ratio
• Employment history
• Property type
• Occupancy
• Current mortgage balance
• Requested HELOC amount
• Home value

Some programs also have minimum and maximum line amounts.

So even if your home equity supports a $150,000 HELOC mathematically, you still need to qualify for the loan.

How Is My Home Value Determined for a HELOC?

The lender needs to establish what your home is currently worth.

Depending on the HELOC amount and lender, that may involve:

• An automated valuation
• A property inspection
• A desktop appraisal
• A full appraisal

Utah homeowners who purchased several years ago may be surprised by how much equity they have accumulated, particularly if their property’s value has increased while they have continued paying down their mortgage.

Do I Have to Borrow the Entire HELOC Amount?

Usually, no.

One of the major differences between a HELOC and a traditional home equity loan is that a HELOC is generally a revolving line of credit.

For example, you might qualify for a $150,000 HELOC but initially draw only $40,000.

You generally pay interest based on the amount you have actually borrowed rather than simply the entire approved credit line.

That flexibility is one reason homeowners use HELOCs for projects where expenses happen over time.

How Much Equity Should I Take Out?

Just because you can access a certain amount of equity does not necessarily mean you should borrow all of it.

Before deciding how large your HELOC should be, consider:

• What you actually need the money for
• The expected monthly payment
• Whether the interest rate is variable
• How quickly you expect to repay it
• Whether another loan structure would make more sense

A HELOC can be a valuable financial tool, but your home is securing the debt.

Find Out How Much You Can Borrow With a Utah HELOC

If you are wondering how much you can borrow with a Utah HELOC, the first step is fairly simple.

We can look at your estimated home value, current mortgage balance and the HELOC programs available to determine approximately how much equity you may be able to access.

At Houzd Mortgage, we help Utah homeowners compare HELOC options from multiple lending sources rather than assuming the program at their existing bank is their only choice.

Whether you need $25,000 for a remodel or want to access a larger amount of your home’s equity, our Houzd Mortgage team can help you understand the options available.

Learn more about our Utah HELOC options or contact Houzd Mortgage to see how much equity you may be able to access.

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