How much money should you initially have saved for emergencies?

[Account Closed]

I'm planning to take out an FHA loan soon. I'm saving up for the down payment at the moment. But in addition to the down payment how much should I save up for other expenses such as emergencies that may come up?

[Franco Li]

One of the problems that you'll notice after buying several houses is that lenders require to you save more and more as reserves for each mortgage. Typically 6 months of reserve, but as you can guess, this becomes multiplied by how many mortgages you have. So that's where creative financing really helps! Best of luck!