cancel
Showing results for 
Search instead for 
Did you mean: 

Reserves

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
Established Contributor

Reserves

Do lenders commonly require a certain # of months worth of payments in reserve? We will be cutting it close to save up the rest of the down payment money needed before applying in Feb. I will be right at 50-51% DTI, self employed. 3.5% down FHA and mid mortgage score is 660. 

Starting Score: 6/17/15 EQ: 589 EX: 593 TU: 579
Current Score: 5/22/16 EQ: 703 EX: 697 TU: 713
Goal: 700s by June 2016
Message 1 of 6
5 REPLIES 5
Contributor

Re: Reserves

typically FHA does not require reserves - your loan officer will let you know if it is necessary for the type of loan you are getting. Requirements can vary across loan programs

In the garden since 12/29/16

Starting Score: EQ 662 TU 685 EX 706 (MyFico 1/7/15)
Current Score: EQ 735 TU 724 EX 741 (MyFico 1/4/17)
Goal Score: All 750


Take the myFICO Fitness Challenge



Message 2 of 6
Regular Contributor

Re: Reserves

Yup not usually needed for FHA. Almost all jumbo loans require them. For conforming loans it depends on the lender but there are many that require no or very low reserves. You are more likely to be required to come up with reserves if there's something in your profile that makes you a higher risk-- credit score is low, FYI is high, low down payment, etc.
Message 3 of 6
Contributor

Re: Reserves

Also 401k, IRA, and HSA accounts can be counted as reserves by many lenders for many loans types

In the garden since 12/29/16

Starting Score: EQ 662 TU 685 EX 706 (MyFico 1/7/15)
Current Score: EQ 735 TU 724 EX 741 (MyFico 1/4/17)
Goal Score: All 750


Take the myFICO Fitness Challenge



Message 4 of 6
Valued Contributor

Re: Reserves

It depends on the loan program and what automated underwriting says. Remember, typically 60% of retirement and investment accounts can be considered reserves as well as long there isn't a clause saying they can't be touched under any circumstance until retirement age (sometimes the case with government employees' retirement accounts).

Mortgage Loan Officer licensed in CA & AZ


Message 5 of 6
Established Contributor

Re: Reserves

Unfortunately I do not currently have anything in retirement. 

Starting Score: 6/17/15 EQ: 589 EX: 593 TU: 579
Current Score: 5/22/16 EQ: 703 EX: 697 TU: 713
Goal: 700s by June 2016
Message 6 of 6
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.