Rental Property Loan Reserve Requirements

Quick Answer

Most DSCR lenders require 6-12 months of PITIA in reserves after closing. For a property with a $2,000 monthly PITIA, that means $12,000-$24,000 in accessible liquid funds must remain after the down payment and closing costs are paid. Reserves can often include checking, savings, money market, and retirement accounts (at a discounted value).

Reserve Requirements by Scenario

Scenario	Typical Reserve Requirement	Notes
Purchase (1 property)	6 months PITIA	Standard for most programs
Purchase (2-4 unit)	9-12 months PITIA	Higher for multi-unit
Rate/Term Refinance	6 months PITIA	Similar to purchase
Cash-Out Refinance	9-12 months PITIA	Higher risk = higher reserves
Portfolio (5+ properties)	6-12 months per property	Or aggregate portfolio reserve
LLC Vesting	Often 12 months PITIA	Entity closing may require more

What Counts as Reserves

✅ Typically Counts

Checking & savings accounts
Money market accounts
CDs (accessible without penalty)
Retirement accounts (60-70% of value)
Stocks/bonds (60-70% of value)

❌ Typically Does NOT Count

Gift funds not yet received
Equity in other properties
Business assets (unless personal)
Expected rent from subject property
Cryptocurrency (most programs)

FAQs

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Disclaimer: Educational only. Reserve requirements vary by program.

Last Updated: July 17, 2026 | Reviewed by: Matt Dean, Sr. Loan Officer, NMLS #227603 · NEXA Lending