Expect months of PITIA left in liquid accounts after closing — often 6–12 months on jumbo. Here is what counts, what gets haircut, and how Indiana buyers plan liquidity.
Jumbo investors hold the risk themselves — Fannie and Freddie are not buying the loan. Larger balances mean larger monthly payments, so underwriters want proof you can weather a job change, vacancy, or repair without missing a payment.
Reserve months are measured against full PITIA (principal, interest, taxes, insurance, HOA). On an $850,000+ purchase, that can be a substantial cash requirement beyond down payment and closing costs.
Reserve requirements vary by investor and are subject to change.
Seasoned, documented assets with clear ownership — not last-minute large deposits without a paper trail.
Checking, savings, money markets, stocks, and bonds usually count at or near face value when statements are clean.
IRA, 401(k), and similar accounts often count at a reduced percentage. Vesting and withdrawal rules matter.
May be usable with CPA letters and ownership documentation — especially for self-employed borrowers.
Cryptocurrency (many investors), unverified cash, and funds already earmarked for down payment or closing.
Down payment, closing costs, and reserves all draw from the same liquidity pool.
Related jumbo guides from Ryan & Steve.
Many jumbo programs want 6–12 months of PITIA in liquid reserves after closing. Higher loan amounts, higher LTV, second homes, and investment properties often push toward the upper end — or beyond.
Liquid or near-liquid assets: checking, savings, money markets, stocks, bonds, and vested retirement accounts (often at a percentage). Earnest money and down payment already committed usually do not count toward post-close reserves.
Often not. Many investors haircut retirement balances (for example 60–70%) to reflect taxes and access. We confirm the exact treatment before you move money around.
Gift funds typically help with down payment and closing costs more easily than reserves. Some investors restrict gifts for reserve requirements — we verify overlays on your specific program.
We calculate your exact reserve gap against current jumbo investor guidelines.
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