Reserves

Lenders often want to see that money will still be on hand after closing, not only enough cash to get to the closing table. Those leftover funds are reserves. How many months of payment a lender wants is not a universal consumer figure. This page defines the leftover-asset idea. It does not publish reserve tables.

Fannie Mae’s Selling Guide defines liquid financial reserves as liquid or near-liquid assets available after the mortgage closes. That official definition is PRIMARY. Month-count tables and engine-specific calculations are omitted.

Asset verification is the process of proving assets. Reserves are the leftover funds that process may be used to show.

• Asset verification
• Compensating factors
• Underwriting

This page does not publish universal month-count reserve requirements.