Cash Guide

What Reserves Are Required?

It depends on the loan. Many primary-residence conventional purchases need little or no reserves, while second homes, investment properties, and borrowers with multiple financed properties often need several months of PITIA in verified assets after closing.

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What Counts as Reserves

Reserves are assets left over after down payment and closing costs.

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))}

When Reserve Needs Rise

These profiles usually need more cash left in the bank.

  • Second-home and investment-property purchases
  • Borrowers with several financed properties
  • Higher DTIs that need compensating factors
  • Self-employed borrowers with variable income
  • Certain condo, manufactured, or unique property types

Eligible Reserve Sources

Document ownership and accessibility.

  • Checking and savings accounts
  • Stocks, bonds, and mutual funds
  • Vested retirement accounts (often with a percentage adjustment)
  • Money markets and CDs
  • Gift funds in some cases for down payment — reserves rules can differ

How We Calculate Your Reserve Gap

We show cash to close and post-closing reserves as two separate numbers.

{[ ["Total verified assets", "Add eligible accounts with statements."], ["Subtract cash to close", "Remove down payment and closing costs."], ["Compare to required months", "Match occupancy and property-count guidelines."], ["Plug any shortfall", "Adjust down payment, gift strategy, or timing."] ].map(([t, d], i) => (

Step {i + 1}

))}

Keep Exploring

Related guides to help you compare options and move toward pre-approval.

What Closing Costs Should I Expect?

Estimate cash needed beyond the down payment.

Can I Buy an Investment Property?

Investment loans often need more reserves.

Can I Buy a Second Home?

Second-home reserve expectations.

Get Started

Check your reserve position with Ryan or Steve.

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Related Blog Posts

Recent articles from our blog on conventional loans, credit, and homebuying.

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Frequently Asked Questions

Unsure How Much Cash You Need After Closing?

Ryan or Steve will calculate cash to close and required reserves for your exact conventional scenario.

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