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Updated over 5 years ago on . Most recent reply

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Craig Risser
  • Rental Property Investor
  • Harrisburg, PA
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Cash Reserves for Mortgage

Craig Risser
  • Rental Property Investor
  • Harrisburg, PA
Posted

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

Most Popular Reply

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Chris Mason
Pro Member
  • Lender
  • California
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Chris Mason
Pro Member
  • Lender
  • California
ModeratorReplied
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)

  • Chris Mason
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