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. 

I have heard, as little as 3 months. 

    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. 

http://www.biggerpockets.com/blogs/5110/blog_posts...

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, Lender in NY (#NMLS 1084877)
585-204-6923

@Jerry Padilla

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

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