high cash reserve requirement for mortgage, impact to investors

[Glen Wiley]

We recently worked on getting pre-approved for our next SFH rental purchase and found out that the credit union we have been using requires 6 months worth of mortgage payments for all properties in our portfoio in cash as a reserve. The purchase was about $300,000 with 25% down with a federally backed loan (fannie/freddie).

I believe that this kind of underwriting policy will significantly reduce investor purchase volume. Combined with the interest rates it makes purchasing a SFH less attractive or out of reach for many small investors.

Have others seen this high reserve requirement and what do you expect the impact to be on investors.