Profile picture for tiramisu5706

Does is required to have reserve from lender?

Does every lender ask for reserve ?
If Yes, How many months reserve lenders ask typically ?
Any expereinece , thought ?
  • August 30 2013 - Shrewsbury
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Answers (9)

Additionally, all jumbo loan programs require reserves.     If you post more information about your scenario (loan amount & Home Value, if you own other properties, if this is a new purchase or refinance) the advice would be relevant to your specific situation.
  • August 31 2013
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The simple answer is that virtually any loan will be processed thru automated underwriting (DU or LP) and that finding will determine if reserves are required and the amount.  If investment property there may be individual lender overlays in addition to DU or LP finding. Most owner occupied loans do not require reserves, though some FHA programs below 640 credit scores may.
  • August 31 2013
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If you are planning on purchasing a multi family you should plan on having 6 months reserves in the bank. Contact me for more details.
  • August 31 2013
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Profile picture for shapiroamg
Reserves will depend on the program and guidelines. You need not have cash in savings or checking for reserves.  Retirement, stock, and cash value life insurance can be used for reserves if needed.
  • August 30 2013
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This is something that varies from lender to lender and also depends on the type of loan as well. Although it is important to have reserves, because it demonstrates less risk to the lender, not every lender or loan requires it. I would suggest that you talk to some lenders, like myself, so we can try to help you out and give you a loan with your situation.

Well I hope this helps! If you have any other questions or need a loan please contact me through the information on my profile page! Also, if you found this helpful, please leave me a review on my profile page.

Good Luck
  • August 30 2013
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Program and situation. FHA or VA, no reserves needed. But, some programs require them and if you have a rental, then yes. We need to know if you come upon a hard time, you have assets to survive the bumps in the road of life. 
  • August 30 2013
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There are many different loan programs out there, many do not have large reserves requirements and some have no reserves requirement at all.

That said, it's never a good idea to commit to a large debt if you don't have sufficient reserves to get you through a 6 month stretch if you needed it. Good luck!
  • August 30 2013
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Many different factors are taken into account to determine if reserves are required, by no means does every lender require or every buyer need reserves. Depends on the situation.
  • August 30 2013
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Profile picture for GMerino
It all depends on your situation, for example if you own another home and you are going to rent it out but have not had a rental in your tax returns you would be required to have reserves.  It all depends on your scenario.
  • August 30 2013
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