FHA loan/reserves

[Anonymous]

From what I have been reading, FHA suggests you have about two mo mortgage supply in your savings? We do not have this, we are working towards savings but do not have a reserve yet. Does this mean we wont get approved? Our scores are at the minimum and we are paying down all % util drasticaly this month..

[Anonymous]

It will depend on the lender and the strength of your file. FHA does not require it, but some lenders may, and if you have high DTI or something else that an underwriter might not like, reserves can counterbalance it. We have high DTI but a lot in reserves, so that helped us a lot.

Good luck!

[DallasLoanGuy]

FHA does not require cash reserves.

But like any loan, it is one of the factors weighed in underwriting.