Question: How Much Reserve is necessary on Existing Properties for New Loan?

6 Replies

Possibly opening escrow on an investment property - off market.

I have a few existing investment properties - all conventional loans. The new purchase would also be a conventional loan.

Per guidelines, what is the minimum reserve needed on my existing properties, and the subject property to qualify for a loan?

Thanks in advance

in the past.. Reserves for a conventional investor loan have been 6 months piti  minimum. 

    For me it's been 6 months,and one bank likes to see that the money has been in an account for awhile

@David G 

Here is a blog I wrote on cash reserves.

Cash Reserves Required For Other Properties Owned by Investor;

  • If the borrower has 1-4 mortgages, an additional two (2) months for every other SFR investment property and second home is required and additional six (6) months for every other 2-4 unit investment property and second home
  • If the borrower has 5-10 mortgages, An additional six (6) months for every other investment property and second home.

@Jerry Padilla

I have this page bookmarked for easy reference, I use it 4 or 5 times a week.  good stuff.

@Jeremy Pace I am so glad you find the blogs helpful! I have more to write up. I just need more time in the day! 

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