Funds a lender may require a borrower to retain after closing, often measured in months of specified expenses or payments.
Put this term into context.
Use related guides, calculators, and magazine features to see how this concept affects real home-equity decisions.
Related Education Guides
DSCR HELOC Reserves: Why Liquidity Still Matters After Closing
Investment-property lenders may care about reserves even when property cash flow supports the debt. Understand why liquidity can influence eligibility and strategy.
Read guide →DSCR HELOC Basics for Rental-Property Owners
Investor HELOCs should be evaluated through the economics of the rental property and the lender overlay, not through owner-occupied assumptions.
Read guide →Second-Lien Strategies for Seasoned Investment Properties
A fixed second lien can create liquidity while leaving a seasoned first mortgage intact, but investor-specific overlays can be decisive.
Read guide →Home Equity Loans for Veteran Homeowners: When a Fixed Second Payment May Fit
For veteran homeowners who want a known lump sum, a home equity loan may provide a fixed-payment alternative to a revolving line of credit.
Read guide →Related Magazine Features
Investor Opportunity Reserves: When a HELOC Can Support, Rather Than Replace, Liquidity
Investors may use home or property equity to create flexible opportunity capital, but borrowing capacity should not be confused with true cash reserves.
Read feature →Investor Scenario of the Month: $500,000 Rental, $225,000 First Mortgage, $100,000 Capital Goal
The recurring investor feature compares a DSCR HELOC, DSCR HELOAN or second mortgage, and DSCR cash-out refinance using a realistic rental-property scenario.
Read feature →10 Questions to Ask Before Taking Cash Out of an Investment Property
A pre-closing checklist covering leverage, cash flow, DSCR, rates, fees, reserves, prepayment terms, exit strategy, and intended use of proceeds.
Read feature →
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