The Quick Read: Usually yes, a taxable brokerage account of stocks, bonds, ETFs, or mutual funds can count toward reserves, provided the statements show the account is in your name and fully accessible, though many programs count it at a discount to the balance, and the exact treatment depends on the lender.
- Reserves are measured in months of PITIA (principal, interest, taxes, insurance, and association dues) on the property you are buying or refinancing.
- Only what remains after the down payment and closing costs counts. The same dollar cannot do both jobs.
- Brokerage balances are often counted below face value because prices move and selling takes time.
- Short-term rental files tend to get a harder look at reserves than long-term rental files, because the income swings by season.
- Reserve rules differ by lender, leverage, loan size, and transaction type. No single number applies everywhere.
What Counts as Reserves on an STR Loan
Reserves are liquid assets you still hold after the loan funds. Lenders size them in months of PITIA for the subject property. Commonly the requirement lands around six months on files placed through Lendmire’s wholesale network, though it moves with the file.
Short-Term Rental Calculator
Run the STR numbers in your market
Rate source: Freddie Mac 30-yr average via FRED® — Federal Reserve Bank of St. Louis · effective Oct 15, 2026
Prefilled with starting assumptions — enter your nightly rate, occupancy, taxes, and insurance for a more accurate picture.
Short-term rental income is documented with a 12-month history or a market data report. Program parameters update from Lendmire’s centralized guideline source.
As of Oct 15, 2026 · General Freddie Mac market benchmark, not a Lendmire loan offer. Nightly rate, occupancy, taxes, and insurance are editable estimates. Qualifying income for short-term rentals varies by program — some use appraisal market rent, others use documented STR history or projections — and is confirmed in underwriting. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
Several things move it. Conservative rate-and-term refinances at modest leverage under $1,500,000 can see reserves waived. Loans above that size typically step up to about nine months. A thinner coverage ratio or a weaker credit profile can also pull the requirement higher.
The order of operations matters most. Your down payment and closing costs come out of your liquid assets first. What is left is your reserve balance. An investor who plans to count the same brokerage dollars toward both the purchase and the reserves will come up short.
Reserves are one test among several. The lender also reviews rental coverage, credit, leverage, and property eligibility. A big reserve balance does not erase a leverage cap or a credit floor. For a look at how those pieces fit together, see Lendmire’s complete DSCR loans guide.
Does a Brokerage Account Count?
A taxable brokerage account is generally an eligible reserve asset. Stocks, bonds, ETFs, and mutual funds all fall into that bucket. The account has to be verifiable, owned by the borrower, and available without restriction.
Most programs placed through the network ask for the most recent statement for each account. That is usually a monthly or quarterly statement. It should show the owner’s name, the holdings, and the current value. Some programs do not require you to sell the securities to count them. Others want to see the funds liquidated. Ask which camp your program is in before you plan around it.
The discount is where investors get surprised. Lenders usually do not treat a brokerage balance like a checking balance. Two reasons drive that.
- Price risk. The balance on the statement is not the cash you would receive after a market drop.
- Timing. The standard settlement cycle for most broker-dealer trades is now one business day after the trade date, so proceeds are near-liquid but not instant.
How big is the discount? It varies by program, and market surveys show a wide spread. Some programs count diversified holdings close to full value. Others apply a meaningful cut. Treat any single percentage you read online as one lender’s choice, not an industry rule.
The practical advice: ask for the program’s treatment of brokerage assets in writing before you commit to a purchase. Then size your reserves assuming the more conservative end.
How Each Asset Type Is Typically Treated
This table shows the general pattern across programs. Treatment is lender-specific, so confirm the details for the program your file lands in.
| Asset | Usually counts? | Typical treatment |
|---|---|---|
| Checking and savings | Yes | Full balance after closing |
| Money market | Yes | Usually full balance |
| Taxable brokerage | Usually | Often discounted; statements required |
| Retirement account | Often | Deeper discount, vested balance only |
| Business account | Case by case | Ownership and access reviewed |
| Gift funds | Varies | Often excluded or limited |
| Crypto | Varies | Commonly excluded or case by case |
| Home equity, undrawn credit lines | Generally no | Not liquid assets |
Restricted stock and unvested options are in the same doubtful bucket as crypto. If most of your net worth sits in a single employer’s unvested shares, plan on cash or diversified holdings carrying the reserve requirement. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
A Worked Example in Months, Not Dollars
Run the numbers this way. All inputs below are modeled assumptions, not network terms.
Say a short-term rental purchase calls for six months of PITIA in reserves. The investor holds cash after closing equal to two months of PITIA. The rest sits in a diversified brokerage account whose statement value equals eight months of PITIA.
Assume the program counts brokerage at 80 cents on the dollar. That is a hypothetical 20% discount.
1. Brokerage at face value: 8 months of PITIA. 2. After the assumed discount: 6.4 months of counted reserves. 3. Add the 2 months of cash: 8.4 months total. 4. Requirement of 6 months: cleared with room to spare.
Now change one input. Suppose the investor has to sell part of that brokerage account to fund the down payment. The pool shrinks, and the cash does not come back. If the post-closing brokerage balance falls to the equivalent of five months of PITIA, the counted figure drops to 4 months under the same discount. Add the 2 months of cash and the total is 6.0. That is the requirement, with no cushion.
The lesson: calculate reserves after you decide which assets fund the closing. Not before.
Market moves count too. If the statement is a few weeks old and the market drops before the file is reviewed, the lender may ask for a fresh statement. A balance that barely clears the requirement is the balance most exposed to that.
Why Short-Term Rentals Get a Closer Look
STR income is variable. It is usually underwritten from trailing twelve-month platform or property-management revenue, or from a market projection, rather than from a signed lease. AirDNA notes that lenders scrutinize coverage on short-term rentals more carefully because of those variable income patterns.
That scrutiny reaches reserves. A property that earns well in peak months and thinly in the off-season needs a buffer for the thin months. Reserves are that buffer. And brokerage assets can lose value in the same stressed environment that hurts bookings, which is part of why lenders discount them.
Here is the program picture for short-term rental collateral across the network:
- Purchase leverage tops out at 75% LTV on the strongest files.
- Refinance leverage runs around 70%, and cash-out on short-term-rental collateral is capped at 70%.
- A 640 credit score is the usual floor.
- Programs generally expect about 12 months of hosting experience.
- Coverage starts at 1.00 on both purchases and refinances, on select programs. Stronger ratios open better pricing and leverage.
- Coverage below 1.00 is a separate path. It is available through select lenders in the network, with leverage and terms adjusted.
All of these are typical ranges, subject to lender guidelines. They are not commitments to lend.
One caution on the coverage number. DSCR compares rent to PITIA and nothing else. Clearing 1.00 does not mean the property has positive cash flow. Repairs, vacancy, management, utilities, furnishing, and capital expenses all sit outside the calculation. Reserves are part of how an investor survives those costs, which is another reason not to stretch them.
Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income.
Where the General Answer Breaks Down
Retirement accounts. Many programs count vested retirement balances, usually at a deeper discount than taxable brokerage. Part of the reason is the cost of getting at the money. Withdrawals from an IRA before age 59½ generally carry an additional 10% tax on top of regular income tax, per IRS Topic 557, and tax treatment varies, so consult a qualified professional. Some programs also treat retirement balances differently by borrower age.
Reserves versus asset depletion. Counting brokerage assets as reserves is not the same as using them as qualifying income. Asset-depletion programs convert a balance into income. They subtract the funds used for closing and reserves first. DSCR files qualify primarily on property-level rental income covering the payment, subject to lender guidelines, so depletion rarely enters the picture. Do not let the two ideas blur.
Ownership and titling. The account should be in the borrower’s name, or the borrower needs clear access. When an LLC is the borrower, funds in a separate entity or in someone else’s account may not count, subject to program terms. Joint accounts usually work if the borrower is an owner with full access. Ask before you move any money.
Margin. A brokerage account carrying margin debt can be netted down, and pledged securities may not count at all.
Large or growing portfolios. Reserve requirements can step up with loan size. Some programs also look at the total balance of the investor’s financed properties. Each added property can claim more of the same pool. An investor scaling a short-term rental portfolio should plan reserves for the whole stack, not one property at a time. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Large deposits. Money that just landed in the account usually needs a documented source. Lenders also look at how long funds have been in place. A transfer that goes into the brokerage account a few weeks before application invites questions.
DSCR vs. conventional financing
There are two common ways to finance an investment property, and they qualify you differently — here’s how investors weigh them.
Why investors choose it
- Qualifies on the property’s rental income — no personal tax returns, W-2s, or pay stubs needed to document income.
- No personal debt-to-income ceiling to clear, so existing mortgages and obligations don’t cap your borrowing the same way.
- Can be closed in an LLC, keeping the property inside a business entity.
- Built for scaling — not held to the limit on number of financed properties that conventional financing applies.
- Underwriting centers on the deal: generally qualifies when the rent covers the payment, a 1.00x coverage ratio being a common baseline (confirmed in underwriting).
- Designed specifically for investment property, including long-term and, where the program allows, short-term rentals.
Where it’s strong
- Often the lowest ongoing financing cost for a buyer who fully qualifies on personal income — a fit for a first property or a cost-first purchase.
Trade-offs for investors
- Requires full personal income documentation and must fit within a debt-to-income limit — salary, existing debts, and other mortgages all count.
- Typically held in your personal name rather than a business entity.
- Caps how many financed properties you can carry, which can become a ceiling as a portfolio grows.
- Evaluates you as a borrower as much as the property, which usually means more paperwork.
How investors usually choose: a first or single property often optimizes for the lowest financing cost; portfolio builders often optimize for leverage, vesting in an LLC, and scaling past conventional caps. The right answer depends on your goals, the property, and current guidelines — both paths run through select lenders in Lendmire’s wholesale network, with eligibility and terms confirmed in underwriting.
Sell the Holdings or Leave Them Alone?
This is a real decision, and it depends on the investor.
For an investor with a large brokerage account and modest cash, leaving the account invested often works best when the program counts it with a discount. The account stays intact and does its job as reserves. Only the down payment and closing costs come from cash. The catch is the discount, which can mean needing a bigger balance than expected.
Selling holdings makes more sense in two situations. One is when the program wants liquid cash rather than securities. The other is when a concentrated position makes the balance too volatile for the lender to rely on. The cost is that you shrink the pool that was supposed to supply reserves.
There is also an opportunity cost. Cash held in reserve instead of invested has a price. An investor with a strong, diversified brokerage account and a well-covered rental may decide to hold more cash and take the clean answer. An investor stretched thin should probably choose a smaller loan or a different property rather than counting on a discounted balance to carry the file.
For a first short-term rental, cash is usually the cleaner reserve. For a fourth or fifth property, a mix of cash and diversified brokerage assets tends to be the practical structure.
Lendmire’s piece Can Booking Deposits Count as Reserves on a Short-Term Rental Loan? covers a related question about money that sits on a platform. For investors pulling equity to fund the next purchase, Lendmire also covers how reserves and proceeds work on a short-term rental cash-out refinance.
Business-Purpose Loans and Why Rules Differ
DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. Reserve treatment is set by each program’s guidelines rather than by a single published formula. That is why the discount on a brokerage balance can vary so much from one lender to the next.
For a broker, that variation is the point of working with a network. Lendmire sees many programs’ reserve rules side by side. A file that is tight under one program’s brokerage treatment may fit cleanly under another’s.
Key Terms Defined
PITIA: Principal, interest, taxes, insurance, and association dues, the monthly obligation reserves are measured against.
Reserves: Liquid assets the borrower still holds after closing, expressed in months of PITIA.
Haircut: The discount a lender applies to a non-cash asset when counting it toward reserves.
Seasoning: How long funds have been in an account before the application.
Asset depletion: A way of turning a balance into qualifying income, which is separate from counting that balance as reserves.
T+1 settlement: The standard cycle in which a securities trade settles one business day after the trade date.
What to Gather Before You Apply
A short checklist helps the file go smoothly:
- The most recent statement for each brokerage account, showing owner, holdings, and value.
- A plan for which assets fund the down payment and closing costs, so reserves are not double-counted.
- Documentation for any large recent deposit.
- Confirmation of whether the borrower or an entity owns each account.
- A note on any margin balance or pledged securities.
- A separate budget for furnishing, renovation, and lease-up costs. These are not reserves.
Common Mistakes
- Treating a brokerage statement balance as dollar-for-dollar cash.
- Counting the same funds toward the down payment and reserves.
- Moving money between accounts right before applying.
- Leaving a thin cushion above the requirement when the market is volatile.
- Assuming DSCR means no asset review. Qualification runs on the property’s income, but reserves are still documented with statements.
- Using peak-season income to size the loan and then having no buffer for slow months.
Frequently Asked Questions
Is a brokerage account discounted when counted as reserves?
Often, yes. Many programs count stocks, bonds, and funds at less than the statement value because of price swings and settlement time. The size of the discount varies by lender, so ask for the program’s treatment before sizing your balance.
Do retirement accounts count the same way as a brokerage account?
Usually they count, but at a deeper discount, and often only the vested balance. The cost of reaching the money is part of the reason. Some programs also treat the account differently depending on the borrower’s age.
Does the brokerage account have to be in a LLC’s name?
Not necessarily. Many files count accounts held personally by the borrower or guarantor, as long as the borrower has full access. Accounts owned by a separate entity or another person may not count. Program terms decide.
Do reserves stack across several financed properties?
On many programs they do, at least in effect. Each property has its own requirement, and some lenders also look at total balances across the portfolio. An investor adding a short-term rental to an existing portfolio should plan reserves for the whole stack.
Can reserves be waived on a short-term rental?
Rarely for short-term rental collateral. Waivers show up mainly on conservative rate-and-term refinances at modest leverage and smaller loan sizes. Short-term rental files generally carry a reserve requirement because the income is variable.
Next Step
If you are buying or refinancing a rental property and want to see how the numbers work, Lendmire can help you compare DSCR loan options based on the property income, credit profile, leverage, and investor goals. As a broker, Lendmire arranges financing through select lenders in its wholesale network across 41 markets, including Washington, D.C. Program terms are subject to lender guidelines and are not a commitment to lend.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage built around DSCR investor lending, with programs available in 41 markets, including Washington, D.C. DSCR lenders commonly evaluate rental-income coverage instead of personal income paperwork — a practical fit for LLC-owned and multi-property investors. Terms vary by lender, property, leverage, and program. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. SEC Investor.gov: New T+1 Settlement Cycle Investor Bulletin
2. AirDNA: Debt Service Coverage Ratio in Real Estate
3. IRS Topic 557: Tax on Early Distributions from IRAs
This article is part of Lendmire’s short-term rental loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Will a DSCR Lender Count Mid-Term Rental Income on a Furnished Property? · Do You Need a Lease for a Short-Term Rental DSCR Loan? · How to Qualify for a No-Ratio DSCR Loan on Short-Term Rental Properties
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.