FinancingIntermediate

What Is Reserves?

Reserves are liquid savings — typically measured in months of the full PITI payment — a borrower has left over after closing, which lenders check to confirm a borrower can keep paying if income is temporarily disrupted.

Most useful for: Repeat Buyer · Homeowner
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Reserves
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This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.

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