What's your scenario?

When it comes to getting a mortgage, you've got more options than you think. Everyone's situation is different. Tell me your scenario below, and I'll present you with all your options.
Close this form
close

407-704-8729

Questions? Give us a call or chat now!
Ready for your free, no-obligation personalized rate quote?
Get Started Today
< Fannie Mae Loans

Fannie Mae Reserve Requirements

fannie-mae-reserve-requirements

In general, when you hear "Fannie Mae Reserve Requirements" it's referring to a reserve of cash or assets that may be used to make payments on the loan should anything happen.

Cash-out refinances and limited cash-out loans do not require reserves and therefore do not fall under this category. If you're seeking a loan for a primary or secondary home, all underwriters will determine, on a case-by-case basis, if your loan requires you to place assets in reserve in order to qualify.

If you're considering seeking a loan for an investment property, be aware that investment properties typically require a reserve of six months or more.

What are acceptable sources of reserves?

Acceptable reserves are any liquid financial asset that is readily available in:

  • Checking or savings accounts
  • Stocks, bonds, mutual funds, certificates of deposit (CDs), money market funds and trust accounts
  • Amount currently vested in a retirement savings account
  • Cash value of a vested life insurance policy

What are unacceptable sources of reserves?

Unacceptable reserves are any of the following financial instruments:

  • Funds that have not been vested
  • Funds that require retirement, employment termination or death before permitting withdrawal.
  • Stock held in an unlisted corporation
  • Non-vested stock options and non-vested restricted stock
  • Personal unsecured loans
  • Interested Party Contributions (IPCs)
  • Cash proceeds from a cash-out refinance transaction on the subject property

Additional Questions?

Have questions about extenuating circumstances like commissions, alimony and child support? Review our additional forms of income for conventional loans.

When it comes to getting a mortgage

you have more options than you think

  • FHA loan requirements 2017 in Florida (Frequently asked questions)

    What is the maximum loan amount/limit 2017? Maximum loan amount vary by county for traditi READ MORE
  • No Closing Cost Mortgage Home Loan

    What is a no closing cost mortgage? A no closing cost mortgage is simply an option that is READ MORE
  • #1 mistake when searching “Mortgage Rates Today”

    #1 mistake when searching “Mortgage Rates Today” The #1 mistake consumers make with th READ MORE
  • Call Today! (407) 704-8729 Hours: 8:30am to 9:00pm EST

  • © 2016 Copyright © 2016 Copyright Florida Home Funding

    Sondi And Associates, Inc. dba Florida Home Funding. NMLS ID: 870878 Location: 390 N Orange Ave #2125, Orlando, FL 32801 | Phone: (407) 704-8729

    Content provided by The information provided on this site is for basic informational purposes only and IS NOT intended as a substitute for professional or legal advice.
  • Explore Florida Home Funding