Yes — most 1099 Non-QM programs require liquid reserves equal to months of PITIA left after closing, separate from your down payment and closing costs.
Not the same dollars as your down payment — investors want cushion left after you fund.
Reserves are usually measured as months of principal, interest, taxes, insurance, and HOA dues on the subject loan.
Underwriters verify balances remaining after earnest money, down payment, and closing costs clear.
Cash and near-cash accounts count cleanest. Illiquid equity rarely helps until converted.
Lower credit, investment occupancy, or larger loan amounts can push reserve months higher.
Common Non-QM 1099 patterns — your matched investor may differ.
Primary residence
Often 2–6 months
Stronger files may land near the low end
Second home
Often higher
Two housing payments drive cushion needs
Investment
Often 6+ months
Plus other financed property overlays
What counts
Liquid accounts
Brokerage and retirement haircuts apply
Gift funds
Limited for reserves
Borrower-owned cash preferred
Timing
Seasoned balances
Fresh large deposits need LOX
Reserve months and eligible asset types are investor-specific and can change without notice.
Ryan & Steve map down payment, closing costs, and reserve months against your actual accounts before you write an offer.
We flag retirement haircuts, business-account ownership proof, and large-deposit seasoning so underwriting does not stall mid-file.
If reserves are thin, we look at larger down payment trade-offs, a different occupancy program, or timing to build cash — not a surprise denial later.
Reserve checklist
Related 1099 guides and Non-QM resources from Ryan & Steve.
Down payment is separate from reserve months.
Credit, equity, reserves, and 1099 history together.
Dual-housing payments raise reserve needs.
Full program hub with guidelines and Get Pre-Approved CTAs.
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Yes — most 1099 Non-QM programs require liquid reserves equal to months of PITIA left after closing, separate from your down payment and closing costs.
Often 2–6 months for primary residences, and higher for second homes, investment properties, lower credit, or larger loan amounts. Exact months are investor-specific.
Liquid and near-liquid assets — checking, savings, and brokerage (often with haircuts). Retirement accounts may count at a reduced percentage. Business funds need ownership proof.
Gift funds more often help down payment than post-close reserves. Many investors want borrower-owned cash remaining after closing. We confirm the gift rules for your matched product.
Ryan & Steve will size down payment, closing costs, and reserve months for your 1099 Non-QM scenario before you shop.