How much are reserves?

Six months of PITIA on a single property, twelve months on a portfolio.

Can reserves sit in a business account?

Yes, provided the entity or guarantor controls it and the statements are complete.

Do retirement accounts count?

Generally at a discount to the accessible balance. Treatment varies by lender.

Can the seller pay my closing costs?

Within limits the contract and appraisal support. Tell the desk before the contract is signed.

Can closing costs be rolled in?

On a refinance, generally yes within the leverage cap. On a purchase, only against the down payment.

LESSON 6 OF 64 MIN READ

How much cash do I actually need to close a DSCR loan?

You need five things liquid: the down payment, the closing costs, the escrow seed, prepaid interest to month-end, and reserves. Reserves on Silt's sheet are six months of PITIA on a single property and twelve months on a portfolio, and they must remain after closing — they are proof of staying power, not part of the cash you spend. On a typical $400,000 purchase at 75% leverage, plan on the down payment plus roughly three to five percent of the price, plus reserves on top.

THE NUMBERS

Minimum DSCR	0.75 (0.75–0.99 prices at +62.5 bps, 70% LTV cap)
Maximum LTV	80% purchase or rate-and-term · 75% cash-out
FICO floor	660 (below that the desk does not lend)
Loan size	$100K – $3M single · $10M portfolio
Reserves	6 months PITIA · 12 months on a portfolio
Prepay options	5-4-3-2-1 par · 3-2-1 +25 bps · 1-yr +50 bps · none +87.5 bps
Typical days to close	21–30 days from a signed term sheet
Rate sheet	Silt Rate Desk — Market Composite Sept 2026 · effective 2026-09-01

ILLUSTRATIVE — published program floors, not a quote or a commitment to lend. Subject to underwriting, appraisal and final credit approval.

Bucket one and two — down payment and closing costs

At 75% leverage on a $400,000 purchase, the down payment is $100,000. Closing costs on a DSCR file — origination, lender fees, appraisal, title, settlement, recording and transfer taxes — commonly land somewhere around three to five percent of the price, with wide variation by state; transfer-tax states sit at the top of that range and states without them at the bottom. Ask for the estimated closing statement, not the fee schedule.

Bucket three and four — escrow seed and prepaid interest

If taxes and insurance are escrowed, closing collects several months of each to open the account, plus the first full year of insurance premium in most cases. Prepaid interest covers the days from funding to the end of the month, so a closing on the 3rd carries far more prepaid interest than one on the 28th. Neither is a fee — both are your money, spent early — but both need to be in the account.

Bucket five — reserves, and why they are different

Reserves are the balance that must still be there after everything above is paid: six months of PITIA on a single property, twelve on a portfolio. They are not sent anywhere and no one takes them, but a file that clears every other test and lands with $2,000 left over will not close. Count them first, not last — they are the constraint that surprises most first-time DSCR borrowers.

What counts as an acceptable source

Personal and business checking and savings, brokerage accounts at a discount to market value, and retirement accounts at a discount to their accessible balance. Cryptocurrency generally must be liquidated and seasoned in a bank account; treatment varies by lender. Gifted funds are viewed differently on a business-purpose loan than on a consumer one — disclose them and ask early. Undisclosed borrowed funds are a serious problem, not a paperwork issue.

Seasoning and large deposits

Two months of statements, all pages. Any deposit that is large relative to the account's normal activity needs a source: a HUD statement from a sale, a signed loan agreement, a distribution record. Cash deposits are the hardest to document and the most likely to be excluded. Move money into the closing account early so it seasons before you are asked about it.

Reducing the cash requirement

Higher leverage cuts the down payment but costs rate and ratio. A seller credit toward closing costs works where the contract and the appraisal support it. A lender credit in exchange for a higher rate is the mirror image of a buydown. On a refinance, costs can generally be rolled into the loan within the leverage cap. What cannot be reduced is reserves — that is a floor, and it is there for a reason.

Cash to close on a $400,000 purchase

Purchase price	$400,000
Loan at 75%	$300,000
Down payment	$100,000
Origination — 1 point	$3,000
Lender fees	$1,200 (illustrative)
Appraisal	$650
Title, settlement, recording	Varies by state
Escrow seed + first-year insurance	≈ $4,000 (illustrative)
Prepaid interest	Depends on closing date
Reserves that must remain — 6 × PITIA $2,571	$15,426

Reserves are not spent — they must simply still be there the day after closing. Illustrative figures; third-party costs vary by state.

WHAT WE NEED FROM YOU

Two months of bank statements. All pages, for every account being used.
Source letters for large deposits. With the supporting document, not just an explanation.
Brokerage or retirement statements. Where reserves are held outside a bank account.
Earnest money receipt. Showing the deposit already paid.

FREQUENT QUESTIONS

How much are reserves?: Six months of PITIA on a single property, twelve months on a portfolio.
Can reserves sit in a business account?: Yes, provided the entity or guarantor controls it and the statements are complete.
Do retirement accounts count?: Generally at a discount to the accessible balance. Treatment varies by lender.
Can the seller pay my closing costs?: Within limits the contract and appraisal support. Tell the desk before the contract is signed.
Can closing costs be rolled in?: On a refinance, generally yes within the leverage cap. On a purchase, only against the down payment.

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