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Does the borrower need a cash reserve?

April 26, 2017borrower cash Reserve

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Does the borrower need a cash reserve?

2 Answers

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The borrower needs 2 months PITI in reserve if they are purchasing a 2-unit property. There is no reserve requirement for a 1-unit property; however, borrowers with a cash reserve are more likely to receive an Approve/Eligible DU decision at higher loan-to-values.

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The borrower needs 2 months PITI in reserve if they are purchasing a 2-unit property. Reserve requirements for a single family property vary by product, pricing option and private mortgage insurance company, if applicable, requirements. Borrowers with a cash reserve are more likely to receive an Approve/Eligible DU decision at higher loan-to-values.