Direct answer
A source-bounded reserve worksheet that separates lender-required eligible assets from an investor’s operating and repair liquidity.
Decision workflow
- Ask for the DSCR program’s written reserve amount and eligible-asset definition.
- Separate lender reserves from escrow deposits and cash paid at closing.
- Document ownership, liquidity, seasoning and any pledged or borrowed funds.
- Map additional financed properties and contingent obligations.
- Maintain a separate operating reserve based on the property’s actual risks.
File worksheet
| Record | What to verify |
|---|---|
| Written lender terms | Date, program, assumptions and any exception |
| Property file | Value, rent evidence, insurance, taxes and condition |
| Borrower/entity file | Identity, credit, assets, ownership and required authorizations |
| Decision record | Cash required, ongoing payment, reserves and exit provisions |
Joe’s Advice
“Use the written program terms for the actual property. A threshold copied from another lender or another month is not an approval rule.”
— Joseph “Joe” Pistone, NMLS 2087918
Verified questions
Is there one reserve requirement for every DSCR loan?
No. Amounts and eligible assets are lender- and program-specific. Do not import Fannie Mae reserve rules into a proprietary DSCR program.
What are reserves?
They are documented eligible assets available after closing under the applicable program; they are different from costs paid at closing and from escrow deposits.
Can retirement or investment assets always count?
No. Eligibility, valuation discounts, access and documentation vary. Confirm the written program treatment.
Why cite Fannie Mae on a DSCR page?
Fannie Mae is used only as a transparent example of how an agency defines and varies reserves—not as the rule for a proprietary DSCR loan.
Primary sources reviewed August 28, 2026
- Fannie Mae minimum reserve requirements
- Fannie Mae general asset requirements
- CFPB Closing Disclosure explainer
Agency and consumer sources provide definitions and comparison context. Proprietary DSCR matrices remain lender-specific.