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.
Reserves are assets left over after down payment and closing costs.
Reserves are usually measured as months of principal, interest, taxes, insurance, and association dues.
Checking, savings, brokerage, and eligible retirement funds can count with proper documentation.
Money used for down payment and closing costs does not also count as reserves.
Primary homes often need fewer reserves than second homes or rentals.
More financed properties typically mean higher reserve requirements.
These profiles usually need more cash left in the bank.
Document ownership and accessibility.
We show cash to close and post-closing reserves as two separate numbers.
Step 1
Add eligible accounts with statements.
Step 2
Remove down payment and closing costs.
Step 3
Match occupancy and property-count guidelines.
Step 4
Adjust down payment, gift strategy, or timing.
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Often little or none on a straightforward primary purchase, though strong reserves always help as a compensating factor.
Frequently yes, usually at a percentage of the vested balance. We will confirm the usable amount.
No. Earnest money is part of cash to close. Reserves are what remains after you close.
Options can include a larger down payment trade-off, documenting additional assets, gift funds where allowed, or choosing a different occupancy/loan structure.
Ryan or Steve will calculate cash to close and required reserves for your exact conventional scenario.