Utah HELOC Rates & Lenders: Your 2026 Guide to Home Equity Lines of Credit

Utah homeowners have watched their property values surge over the past half-decade. The Wasatch Front—Salt Lake City, Provo-Orem, and Ogden—has been one of the nation's hottest housing corridors, driven by a booming tech sector, young demographics, and limited buildable land squeezed between mountains and desert.

That appreciation has created enormous equity positions for many Utah homeowners. A HELOC is one of the most flexible ways to tap that equity, whether for home improvements, education expenses, or other financial goals. Here's your complete guide to navigating the Utah HELOC landscape.

Utah Housing Market Overview

Utah's housing market experienced a dramatic run-up followed by a modest correction, and has since stabilized:

• Median [home value](/blog/appraisal-process-explained) (statewide): Approximately $480,000
• Salt Lake City metro: $520,000–$560,000
• Provo-Orem metro: $470,000–$510,000
• Ogden-Clearfield metro: $430,000–$460,000
• St. George: $490,000–$530,000
• Park City/Summit County: $1,200,000+ (resort market)

Utah's median home value is well above the national average, making it one of the pricier states in the Mountain West. Prices surged roughly 50–60% from 2019 to 2022, pulled back 5–10% in 2023, and have since resumed modest appreciation of 3–5% annually.

The state's economy is one of the strongest in the nation. Utah consistently ranks among the top states for job growth, with unemployment around 2.8%. The "Silicon Slopes" tech corridor (home to companies like Qualtrics, Pluralsight, Domo, and growing operations for Adobe, Amazon, and Meta) provides high-paying jobs that support housing demand.

Utah also has the youngest median age of any state (~31 years) and the largest average household size, which keeps housing demand structurally strong.

Current HELOC Rates in Utah

Utah's competitive lending environment—anchored by several large credit unions—helps keep HELOC rates attractive:

Utah's credit union market is one of the most developed in the country—the state has among the highest credit union membership rates nationally. This creates genuine competition that benefits borrowers.

[HELOC Requirements](/blog/heloc-application-process-step-by-step) in Utah

Utah lenders follow standard national guidelines with some local nuances:

• Credit score: 680+ for the best rates; 620–640 minimum
• CLTV: Most lenders cap at 80%–85%; some Utah credit unions go to 90%
• DTI: 43% target; some flexibility available
• Minimum equity: 15%–20%
• Income: Standard documentation; Utah's large self-employed and gig economy population means many lenders handle non-traditional income
• Property type: Primary residences get best terms; Utah's second-home market (Park City, Brian Head) means many lenders have experience with vacation property HELOCs

Utah-specific consideration: Utah's high home values mean many borrowers are seeking larger HELOC lines—$100,000 to $250,000 is common along the Wasatch Front. Not all lenders handle higher-balance lines efficiently. Confirm the lender's maximum line amount before applying.

Best HELOC Lenders in Utah

Local and Regional Options

Mountain America Credit Union Utah's largest credit union and one of the best HELOC lenders in the state. Mountain America offers consistently low rates, minimal fees, and excellent service. Their HELOC products include variable-rate and fixed-rate conversion options. Branches throughout Utah and expanding into neighboring states.

America First Credit Union Another Utah credit union giant, America First offers competitive HELOC rates with no annual fees and flexible draw options. They serve the entire Wasatch Front and beyond. Their online platform has improved significantly, making account management convenient.

Zions Bancorporation Utah's largest bank, Zions (parent of Zions Bank) offers robust HELOC products with competitive pricing for existing customers. Their bankers understand Utah's unique real estate dynamics, including condo markets, HOA-governed communities, and mountain properties.

Utah First Federal Credit Union Smaller than Mountain America and America First but known for personalized service and competitive rates. Particularly popular with borrowers in the Salt Lake Valley.

University Federal Credit Union (UCCU) Serving the Provo-Orem area and Utah County, UCCU offers strong HELOC products at rates that compete with the larger credit unions. Good option for Utah County homeowners.

National Lenders Active in Utah

U.S. Bank Significant Utah presence with competitive HELOC products. No closing costs on many lines and a rate-lock feature for payment predictability.

Wells Fargo Large branch network in Utah. HELOC products with autopay discounts and relationship pricing for existing customers.

Bank of America Preferred Rewards discounts available. Limited physical presence in Utah but fully accessible online.

Figure Fully digital HELOC process with fast funding. Fixed-rate product. Available in Utah.

Better.com Online lender that has expanded into HELOCs. Competitive rates and a streamlined digital application process.

Utah HELOC Regulations

Utah's regulatory framework is business-friendly but provides reasonable consumer protections:

• Trust deed state: Utah uses trust deeds (deeds of trust) rather than traditional mortgages. Foreclosure is non-judicial by default—the trustee can sell the property after a notice period of about 3 months (90 days from the notice of default filing).
• Right of rescission: Standard federal 3-day right to cancel applies.
• No usury cap for most lenders: Utah doesn't impose a strict interest rate ceiling on most institutional lenders, though consumer lending laws provide some guardrails.
• Licensing requirements: HELOC lenders must be properly licensed in Utah through the Division of Real Estate or hold a banking/credit union charter. This provides a layer of consumer protection.
• HOA considerations: Many Utah properties (especially newer developments and condos along the Wasatch Front) are in HOAs. HELOC lenders will verify HOA standing as part of underwriting. Delinquent HOA dues can complicate approval.
• Water rights: For some rural Utah properties, water rights are a consideration in [property valuation](/blog/cap-rate-explained-real-estate-investors) and can affect the appraisal. This is primarily relevant for agricultural or large-lot rural properties.

Tax Implications of a Utah HELOC

Unlike the previous no-income-tax states in this series, Utah does have a [state income tax](/blog/states-with-no-income-tax-investing)—and it's a flat rate:

• Utah state income tax: Flat 4.65% (reduced from 4.85% in recent years)
• Federal interest deduction: HELOC interest is deductible on your federal return if funds are used to buy, build, or substantially improve the home. Combined mortgage debt limit: $750,000.
• Utah state deduction: Utah's income tax starts with federal AGI as the base. If you claim the federal mortgage interest deduction, it flows through to reduce your Utah taxable income as well.
• Non-qualified use: Interest on HELOC funds used for non-home-improvement purposes is not deductible at either the federal or state level.
• State tax benefit: For a Utah borrower in the 4.65% state bracket who deducts $5,000 in qualifying HELOC interest, the state tax savings alone is about $233.

Utah Property Tax Context

• Average effective property tax rate: Approximately 0.55%–0.60%
• Median annual property tax: $2,400–$2,800 statewide
• Salt Lake County: Roughly 0.65%–0.75% effective rate
• Utah County (Provo): Similar range
• Primary residential exemption: Utah offers a 45% [property tax exemption](/blog/homestead-exemption-guide) for primary residences, which significantly reduces the tax burden compared to investment or second-home properties
• Truth-in-taxation: Utah has a "truth-in-taxation" process that requires public hearings if a taxing entity wants to collect more revenue than the prior year, which helps keep property tax growth in check

Utah's property taxes are relatively low, especially considering the state's high home values. The 45% primary residence exemption is one of the most valuable in the country.

How to Get the Best HELOC Rate in Utah

1. Start with Mountain America or America First. These two credit unions dominate Utah's HELOC market for good reason—their rates are consistently 0.25%–0.75% below national bank pricing.

2. Get a current appraisal or check your Zestimate. Utah values have been volatile. Know where your home stands before applying to avoid surprises.

3. Leverage the 45% property tax exemption. Make sure your property is correctly classified as your primary residence—this matters for both property taxes and HELOC qualification.

4. Compare at least 3–4 lenders. Utah's competitive credit union market means you have real negotiating power.

5. Watch for annual fees. Some Utah HELOC products carry $50–$75 annual fees after the first year. Factor this into your total cost comparison.

6. Ask about rate floors. Some lenders set a minimum rate (floor) on variable HELOCs—meaning even if prime drops, your rate can't go below a certain level. Understand this before signing.

Frequently Asked Questions

[How much equity do I need](/blog/home-equity-milestones) for a Utah HELOC?

Most Utah lenders require at least 15%–20% equity in your home. Given Utah's higher home values, this translates to significant dollar amounts. For a $500,000 home, you'd need at least $75,000–$100,000 in equity. The maximum borrowing amount depends on your lender's CLTV limit (typically 80%–85%) minus your existing mortgage balance.

Are Utah HELOC rates higher because home prices are higher?

No. HELOC rates are based on your credit profile, CLTV ratio, and the lender's margin above prime—not the absolute dollar value of your home. However, higher home values do mean larger potential HELOC lines, and some lenders offer slightly better rates on larger lines (above $100,000).

Can I get a HELOC on a Park City vacation home?

Yes, but expect tighter terms: lower CLTV limits (65%–75%), higher rates (0.50%–1.00% premium), and higher credit score requirements (700+). Not all lenders offer second-home HELOCs, so shop specifically for this product. Mountain America and Zions Bank both serve the Park City market.

How does Utah's tech economy affect HELOC availability?

Utah's strong tech economy is actually a positive for HELOC borrowers. The state's low unemployment and high income levels mean lenders view Utah as a favorable market with lower default risk. This attracts more lenders and helps keep rates competitive. However, tech-sector employees with stock-heavy compensation may face extra documentation requirements to verify income stability.

What if my Utah home value dropped from the 2022 peak?

If your home is worth less than it was at the 2022 peak, your available equity—and thus your maximum HELOC—will be lower. Request a current appraisal or broker price opinion to understand your home's current value. If you bought at the peak with a high LTV, you may not qualify for a HELOC yet. Focus on paying down your mortgage to build equity.

The Bottom Line

Utah's combination of high home values, a powerful credit union market, and a strong economy makes it a prime state for HELOC borrowing—if you have the equity. Mountain America Credit Union and America First Credit Union should be your first calls, as they consistently offer the best rates in the state.

Utah's flat income tax means you'll benefit from both federal and state deductions if you use HELOC funds for home improvements. The low property tax rate (enhanced by the 45% primary residence exemption) keeps overall housing costs manageable even after adding a HELOC payment.

Plan carefully around Utah's high home values—a larger HELOC means larger payments if rates rise. Consider fixed-rate conversion options for portions of your balance if payment predictability matters to you. And if you're in the Silicon Slopes tech corridor, use your strong income profile to negotiate the best possible terms.

Related Articles

• [[Home [Equity Explained](/blog/home-equity-explained)](/blog/what-is-home-equity): What It Is and How to Build It](/blog/home-equity-explained)
• Property Taxes Explained: How They Work and How to Reduce Them
• Best HELOC Lenders in 2026 - Compare Rates and Draw Periods