Can You Finance a Utah Rental Property With 10% Down?

Yes, a family in Salt Lake County can finance a rental with 10% down through Mountain America Credit Union's investment property loan. This is for a Salt Lake County family that already owns its home and wants a first or second rental. Mountain America confirmed to GR Homes in October 2026 that the loan takes 10% down, has no mortgage insurance, and has payments figured over 30 years with the balance due at year 15. Terms can change without notice.

GR Homes is the consumer brand of Gomez Rueda Realty Group in Salt Lake County.

What is Mountain America's investment property loan?

Mountain America calls the program Investment Property Loans. Its site lists properties with one to four units: single-family homes, PUDs (planned unit developments), and condos. PUDs and condos must meet Fannie Mae or Freddie Mac requirements, or FHA approval for condos.

What Miguel confirmed with the lender this month:

• 10% down on a property you'll rent out.
• Payments amortized over 30 years, with a balloon at year 15.
• No mortgage insurance, the monthly charge that protects a lender when the down payment is small.
• Rates about 0.5 to 1 percentage point higher than a regular loan on a home you live in.

There's also a 15-year fixed option. Membership is required based on eligibility, and loans are on approved credit.

GR Homes isn't affiliated with Mountain America. Compare more than one lender.

Why does 10% down stand out?

Most rental loans ask for more. Under Fannie Mae's eligibility matrix, a standard investment property purchase needs at least 15% down on one unit and 25% on two to four units.

Example only: On a $400,000 rental, 10% down is $40,000. Fifteen percent is $60,000. That's $20,000 less cash at the start.

Closing costs come on top of the down payment. Plan for 2% to 5% of the price, then replace that range with your lender's estimate.

How does the 15-year balloon work?

Your monthly payment is calculated as if the loan lasts 30 years. At year 15, the remaining balance is due in one payment. That lump sum is the balloon.

Most borrowers plan to sell or refinance, which means replacing the loan with a new one, before then. Mountain America's own page says, "It's common for borrowers to refinance the balloon portion of the loan."

The risk: no one knows where rates will be in 15 years, so a new loan could cost more. If the property's value drops or your situation changes, refinancing could be harder. Go in with a plan and a backup plan.

What are the honest risks?

• Vacancy. The mortgage is due whether or not a tenant pays.
• Repairs. Water heaters, roofs, and furnaces break on their schedule, not yours.
• Reserves. Savings left after closing. With 10% down you have less equity, so that cushion matters more.
• Landlord work. Screening, leases, late-night calls, or paying a property manager.
• The balloon. A fixed date that won't move for you.

A rental can become part of what you leave your family. Good stewardship means building it without stretching your household thin.

Who does this loan fit, and who should wait?

It may fit if your own housing is steady, you have savings beyond the down payment and closing costs, rent covers the payment, taxes, insurance, and repairs, and you have a plan for year 15.

It may be wiser to wait if the down payment would empty your savings, your income is uneven, or the numbers only work with the unit rented every month.

Moving up and keeping your current home as a rental? This loan buys a rental, not your next home. Usually your current home keeps its mortgage, and your new home is financed as a primary residence. The lender will count both payments in your debt-to-income ratio (monthly debts compared with income).

What should you ask Mountain America?

These details weren't confirmed, so ask:

• Credit score and reserve requirements.
• Maximum loan amount.
• How many of these loans one person can hold.
• Whether expected rent helps you qualify.
• Whether they refinance the balloon themselves.
• Which states are covered.
• Whether 10% down applies the same way to a duplex or a three- or four-unit property.

Phone: 1-800-748-4302.

What's a simple next step?

Get preapproved. A preapproval is a lender's letter, written after reviewing your credit, income, and debts, showing how much it may lend. Then compare Loan Estimates, the standard form showing rate, monthly payment, and cash to close, from two or three lenders.

Top Level Home Loans, an independent mortgage company we work with, can run those numbers with you at toplevelhomeloans.com. You don't have to use them; any licensed lender can. GR Homes is the brokerage, and the loan is separate. If you'd rather talk it through, we're here.

Written by Miguel Gomez, Gomez Rueda Realty Group (GR Homes), Salt Lake County. Get our free guide: https://www.gomezruedahomes.com/real-estate-guides

FAQ

Can you finance a Utah rental property with 10% down? Yes. A family in Salt Lake County can use Mountain America's investment property loan with 10% down, no mortgage insurance, and payments figured over 30 years with the balance due at year 15. Mountain America confirmed those terms to GR Homes in October 2026. Confirm current terms with the lender before you count on them.

How much down does Mountain America require on an investment property? 10%, confirmed with the lender in October 2026. That sits under Fannie Mae's usual 15% floor on a one-unit rental purchase. Terms can change without notice, so ask Mountain America before you make an offer.

What is a 30/15 balloon loan? Payments are figured over 30 years, so the monthly payment stays lower. At year 15 the remaining balance is due in one payment. Most borrowers plan to sell or refinance before then.

Is there mortgage insurance? No on this program, but the rate runs about 0.5 to 1 percentage point higher than on a primary home. Compare that cost against a conventional rental loan that asks for more down and may charge mortgage insurance.

Who does this loan fit? It may fit a Salt Lake County family whose own housing is steady, who has savings beyond the down payment and closing costs, and who has a plan for year 15. Wait if the down payment would empty your reserves or the numbers only work with the unit rented every month.