What Qualifies as Reserves?

6 Replies

Hello,

Wondering if mortgage lenders count liquid assets (equities, 401K plus cash) towards the 6 month reserve requirement for a duplex (second property) or is it strictly cash? Also, I have been a landlord on my first property for over two years - same tenants. Does that impact the requirement at all for the first property?

Richelle

Originally posted by @Harjeet Bhatti :

@Richelle Bryan 401K can be used as reserve you don't need liquid assets. Yes you do need reserve for all the properties. 

 One other question Harjeet...what am I looking at in terms of mortgage rates for a duplex in New York State? Will there be points as well (Im not even sure how the points work?).

@Richelle Bryan Conventional rates are in around 5% but depend on your loan scenario.  You can always ask your lender if you pay points can get lower interest rate.  Ask for both option so you can do your calculations. If you pay points lets say its $100000 loan amount and you have to pay your lender .25% on this loan so this will be $250 to get lower interest rate.

Originally posted by @Harjeet Bhatti :

@Richelle Bryan Conventional rates are in around 5% but depend on your loan scenario.  You can always ask your lender if you pay points can get lower interest rate.  Ask for both option so you can do your calculations. If you pay points lets say its $100000 loan amount and you have to pay your lender .25% on this loan so this will be $250 to get lower interest rate.

 Okay thank you. I was quited 6.5% because I am an investor. Is that a regional thing?

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