Cash Reserves for Mortgage

[Craig Risser]

Hello everyone,

Getting my down payment, closing costs, and cash reserves lined up for my first investment property come January.

But today I read that lenders also want to see six months of cash reserves available for my primary residence. Approximately $7k in my case.

Is this information accurate? My credit score is 820.

Thanks

[Chris Mason]

Originally posted by @Craig Risser:

Hello everyone,

Getting my down payment, closing costs, and cash reserves lined up for my first investment property come January.

But today I read that lenders also want to see six months of cash reserves available for my primary residence. Approximately $7k in my case.

Is this information accurate? My credit score is 820.

Thanks

 Six months on your primary residence might be an overlay, but it's not a Fannie requirement. 

If you have 1 to 4 financed properties (each can be a 1-4 unit property), the current general standard is:

- 0 months on primary residence, assuming you have good credit.

- 6 months if the subject property is an investment.

- 2% of unpaid mortgage balances for all other investment properties with 1 or more mortgages. 

(As always, Fannie rules are not FHA rules, they aren't jumbo rules, they aren't anything but Fannie rules applicable to Fannie loans)