Yes — DSCR loans usually require liquid reserves equal to months of PITIA left in your accounts after closing, with more properties often meaning more cushion.
Reserves are liquid assets you still hold after down payment and closing costs clear. Investors want proof you can cover vacancies, repairs, or short-term cash-flow gaps without missing the new mortgage payment.
Typical requirements run 2–6+ months of PITIA (principal, interest, taxes, insurance, and association dues if applicable). More financed properties, larger loan amounts, or STR use can push reserves higher.
Reserve months and eligible asset types are investor-specific and can change.
Not every dollar on your balance sheet qualifies at full value.
Usually count at 100% with recent statements showing stable balances.
Stocks and mutual funds often count at full market value — some investors haircut volatile holdings.
401(k) and IRA may count at 60–70% with documentation; early withdrawal penalties factor into investor math.
May be allowed with gift letter and paper trail, but cannot always satisfy reserve requirements on every program.
Possible with ownership proof and CPA letter — rules vary widely by investor.
Home equity, crypto, or private investments typically do not count unless converted to liquid cash before underwriting.
Plan for reserve overlays before you assume down payment is the only cash hurdle.
Each property in your name can add reserve months on the subject loan or across the portfolio.
STR income volatility often triggers higher reserve requirements than a 12-month lease.
Jumbo-tier DSCR files may require 6+ months PITIA or additional flat reserve dollars.
Compensating factors sometimes include extra reserves — stronger liquidity can offset weaker ratios on select programs.
If PITIA on an Indiana rental is $2,200 and the investor requires 6 months of reserves, you need $13,200 in eligible liquid assets after closing — on top of down payment and closing costs.
We calculate reserve months from your real taxes, insurance, and HOA so you know total cash-to-close before you write the offer — not after underwriting surprises you.
Related DSCR guides and investor resources from Ryan & Steve.
Down payment plus reserves — plan cash together.
How score tiers interact with LTV and pricing.
Reserve expectations for your first rental.
Full hub with eligibility snapshot and next steps.
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Yes — most DSCR investors require months of PITIA reserves remaining in liquid accounts after closing. Typical ranges run from 2–6+ months depending on loan amount, property count, and program.
Checking, savings, money market, and brokerage accounts usually count at full value. Retirement accounts may count with a haircut (often 60–70%). Gift funds and business accounts follow investor documentation rules.
Often yes. Each financed property can add reserve months or a flat dollar overlay. Portfolio investors should plan reserves across all subject and other financed properties.
STR and Airbnb overlays sometimes require additional months of PITIA or higher total reserve dollars because income volatility is higher than long-term leases.
Ryan & Steve will model reserve months against your down payment and closing costs so nothing surprises you at the wire.