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Updated over 5 years ago on . Most recent reply
Cash Reserves for Mortgage
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
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)