Nine months, or none at all.
Reserves are the least standardized part of a DSCR loan and the one most likely to surprise you late. One lender publishes a requirement of three to nine months of payments in the bank. Another publishes none. Same property, same borrower, completely different cash needed at closing.
What counts as a reserve.
A reserve is money you still have after closing, measured in months of the property's full payment. If PITIA is $2,500 and a lender wants six months, you must show $15,000 remaining after your down payment and closing costs have left the account. It is not a fee and you do not hand it over. It is proof the property can survive a vacancy.
What usually counts: checking, savings, brokerage accounts, and often a percentage of retirement accounts. What usually does not: the equity in the property you are buying, unverified cash, or funds you have already committed to the down payment. Gift funds are treated differently from your own seasoned money on most investor programs.
What lenders actually say, where they say it.
| Lender | Reserves | Minimum DSCR |
|---|---|---|
| Easy Street Capital | 3 to 9 months of PITIA | No stated minimum |
| Kiavi | States no cash reserve requirement | As low as 0.8x |
| Lima One Capital | Not published | 1.0, best pricing at 1.2+ |
| Angel Oak | Not published | Sub-1.0 and no-ratio available |
| Griffin Funding | Referenced, not quantified | No stated minimum, no-ratio program |
Every entry above comes from that lender's own published pages, checked September 2026, and says "not published" where the lender does not disclose it. That silence is itself the finding: three of five major DSCR lenders do not put their reserve requirement in writing publicly, which is exactly why borrowers discover it during underwriting rather than while shopping.
The same loan, two reserve policies.
| Lender asking 9 months | Lender asking none | |
|---|---|---|
| Purchase price | $300,000 | $300,000 |
| Down payment at 25% | $75,000 | $75,000 |
| Closing costs | $7,000 | $7,000 |
| Reserves to show, PITIA $2,500 | $22,500 | $0 |
| Cash you must have | $104,500 | $82,000 |
Illustrative arithmetic, not quotes. A $22,500 difference in cash required, on an identical property, decided entirely by which lender the file went to. For an investor buying one property it is an inconvenience. For an investor trying to buy three this year it is the whole constraint, and it is the single strongest argument for shopping a panel rather than going straight to one balance-sheet lender.
Why your requirement might be higher.
DSCR near or below 1.0
Lenders offset weaker coverage with more cash behind it
Pushing toward 80%
Less equity usually means more reserves
Rather than a purchase
Commonly carries its own reserve add-on
Several financed properties
Some lenders count reserves across everything you own, not just this one
What investors ask about reserves.
Do I hand the reserve money over at closing?
No. Reserves are never paid to anyone. You show the balance exists after closing and it stays yours. People routinely confuse reserves with closing costs and budget for the wrong number.
Can retirement accounts count?
Often, at a discount. Many lenders count a percentage of a 401(k) or IRA rather than the full balance, on the reasoning that liquidating carries tax and penalty. The percentage varies by lender, so ask before assuming the account covers you.
Does a gift count as reserves?
Treated differently from seasoned funds on most investor programs, and sometimes excluded from reserves even where it is allowed for the down payment. If gift money is part of your plan, raise it at intake rather than at underwriting.
How long does money need to sit in the account?
Seasoning requirements are common, frequently around sixty days. Moving money between accounts shortly before applying creates paperwork, because every large deposit has to be explained and sourced.
Can I avoid reserves entirely?
Sometimes. At least one major lender publishes no cash reserve requirement. Whether that lender is the right one for your file depends on the rate, the leverage and the prepayment structure that comes with it, which is the trade worth examining rather than chasing the zero.
Find out what your file actually needs.
Send the property, the rent and roughly what you have liquid. We will tell you which lenders your reserves clear and what that does to the rate. Run the ratio first on the DSCR calculator.