When purchasing a BYU approved property there are many different entities that set rules on your property. The below guidelines are only meant to help assist you in understanding some of the basic rules you need to follow. To obtain a full description and set of rules, you are encouraged to talk with the appropriate people in each entity.

I have been helping buyers for 12 years understand, purchase, & sell BYU investment properties. I have been an owner of BYU approved properties and have managed for about the same 12 years as well as sit on 10 condominium association boards. I will have the knowledge and skills required to make your investment easy and profitable and will help you avoid many of the pitfalls that buyers run into because they “didn’t know/understand the rules”. You can request a current list of properties that are “BYU approved” right at this website and it will come via email (Click Here For Request). If I know what you are looking for I can email you new properties on the market the day the come on! Since the listings are from many different real estate companies, I would expect that if you did have interest in viewing, or making an offer on a property that you would go through me to represent you in the sale. Please feel free to call me with any questions that you have.

 

Provo City Basics:

The city will determine the number of singles that you can rent to, not BYU. The factors that determine the number of occupants are not size and number of bedrooms. It is determined by the zoning that the property is in, the year it was built and the number of parking spaces that you have off-street and behind the set back. The condominiums are determined when the project was built, and are stated in the declarations. Homes, apartments, etc. are review on a case by case basis. Most student properties will be zoned for 2-4 singles per unit. On rare situations you can get 5-6. The number of occupants is the biggest mistake people make when buying student properties. Always get it in writing from Provo City. Call me with questions you have.

BYU Approved Housing Guidelines – Condominiums

BYU approval is given to a whole condominium project. You can not get BYU approval on a single unit in a project that is not BYU approved. All single students under the age of 25 must live in approved housing. Students who live in a “family owned” condo that is not BYU approved are ok, but they can’t have other BYU roommates. UVSC and other “students” can live in BYU approved housing as long as they agree to abide by the same restrictions of standards, etc. as the BYU students. In BYU approved housing, BYU will designate a wing or a building to a certain gender either male or female. You are restricted to renting only to students when you buy in a BYU approved project. If you rent to single students you will be restricted to the gender designated on that unit. Married students can live in BYU approved housing but are not required to. Brothers, sisters, and cousins can live together in the same condo without other roommates. The only way to change the designation of gender is if all owners in a wing or building agree to do so. Please call me with any questions you have.

Financing Options:

If you have a son or daughter, etc. who will be living in the unit you have some great options to go with! On a FHA loan the son or daughter as long as they are 18 and don’t have negative credit, you can get a loan for only 3% down! Even if they have no job and no credit! They do however need to occupy the property within 60 days past closing and intend to live there at least a year past closing. Past the year you can use it as a rental property! The maximum loan amount however is $166,000 for all of Utah County. The loan rates are low since it is a owner occupied loan. You can’t count the rental income to help qualify for the loan.

If you go with a conventional financing expect about 10%-25% down for an investor and about a half percent higher interest rate. You can count the rental income to help qualify. If you put 20% down it will drop off the mortgage insurance. Conventional loans to be owner occupied the occupant needs to be able to qualify for a substantial part of the loan as well as usually have some down payment. Other options such as a vacation home or second home require the primary borrower to live in the property so much time per year. Please call me if you have any questions on financing or would like me to recommend a lender to you.

Why Buy A Student Condo?

Student Condominiums have been the most popular for people looking for BYU properties! They are easy to maintain from a distance. A condominium association will take care of all exterior repair and upkeep so all you need to worry about is the inside of the property! This allows your son or daughter to stay focused on their school work rather than mowing lawns and keeping up the exterior. Also, most condos are newer and will require fewer repairs as well as easier financing! Keep in mind that I can send you information on single family homes, duplexes, multi-units, and apartments. Please feel free to call me with any questions on these and also if you have a questions on how a condominium works.

I look forward to working with you!

R. Scott Stone
Principal Broker