Amount of required reserves for a conventional mortgage?

[wilee]

I see reserves mentioned a lot on these forums but no ball park numbers of what's expected. I understand strengths in one area (ie high score or low LTV%) can help offset some weaknesses (ie low reserves or high LTV%) but I keep reading reserves are required for conventional but not FHA.

What is an ideal amount of reserves for a conventional mortgage? 2 months wages? 2 months P&I? 6 months wages? What would generally be considered a minimum?

Message Edited by wilee on 01-22-2009 12:36 AM

[wilee]

Anyone???

[WannaHouse]

I would say about 3-6 months of payments. So, if you are looking at 2K a month house payment, then 6-12K reserves would be nice.

[DallasLoanGuy]

Jumbo requires set amounts, but conforming doesn't.

I see people with 2 month PITI (or less)approved all of the time. 

[WannaHouse]

Thanks Dallas.

Not my area, so I basically gave a ballpark figure. 

[Anonymous]

A friend of mine who has been a respected mortgage broker for over 20 yrs. informed me that most lenders require reserves of at least 3 mos PITI payments.  I believe this would be for conventional mortgages; I am unaware of the FHA requirements, if any.

[wilee]

Thanks for the replies...sounds like I'm all set with reserves.

[DallasLoanGuy]

---

@Anonymous wrote:
A friend of mine who has been a respected mortgage broker for over 20 yrs. informed me that most lenders require reserves of at least 3 mos PITI payments.  I believe this would be for conventional mortgages; I am unaware of the FHA requirements, if any.

---

neither require reserves.... it is NOT in the guidelines anywhere that you must have a dime post closing.

i am sure yourfriend has access to the guidelines.

 

if you are keeping your old home as a rental, then reserve requirements kick in.