Cash Reserve Requirements Calculator

Find out exactly how much cash you must have left after closing. Reserve requirements vary by loan program, property type, and occupancy — and using the wrong assets can get your loan denied.

Reserves are the cash you must have after closing. Enter your loan details to find how much your lender will require.

$
$
Reserve Requirement
0–2 months
0–2 months typical for primary Conventional at standard LTV/credit
Minimum Required ($)
$0
Recommended Max ($)
$4,200
Your Reserves
$25,000
Surplus Above Max
+$20,800

Reserve requirements vary significantly by program, property type, and occupancy. Here is a side-by-side comparison.

ProgramPrimary 1-UnitPrimary 3-4 Unit2nd HomeInvestmentNotes
Conventional0–2 mo2–6 mo2–6 mo6 mo eachVaries by LTV, credit, AUS decision
FHA1 mo3 moN/AN/AFHA does not allow investment property
VA0 moN/AN/A6 mo eachResidual income requirement; no reserves for primary
USDA0 moN/AN/AN/ANo reserve requirement; single family rural only
Jumbo6–12 mo6–12 mo6–12 mo12–18 moHigher loan balances = stricter requirements
Multiple properties: If you own other financed properties, Conventional requires 2% of the unpaid balance of ALL other mortgages as reserves, in addition to the reserves for the new property being purchased.

More down payment reduces your LTV (and may reduce reserves needed), but depletes cash. Find the right balance for your situation.

$
$
$
Standard Down
$80,000
LTV: 80.0%
Loan: $320,000
Required reserves: $0
Reserves left: $25,000 ✓
0–2 months typical for primary Conventional at standard LTV/credit
Higher Down
$100,000
LTV: 75.0%
Loan: $300,000
Required reserves: $0
Reserves left: $5,000 ✓
0–2 months typical for primary Conventional at standard LTV/credit
The trade-off: Putting more down reduces monthly payment and may eliminate PMI, but every extra dollar of down payment reduces your post-closing reserves. Lenders care about both LTV and reserves. Find the sweet spot where you meet reserve minimums while still getting the best rate tier.

How to Use the Cash Reserves Calculator

Select your loan program, property type, and occupancy to get the reserve requirement specific to your transaction. Enter your monthly PITI payment and how much cash you will have left after paying your down payment and closing costs. The calculator tells you how many months of reserves your lender requires, the dollar equivalent, and whether your post-closing cash meets the minimum.

Use the Advanced tier to see requirements across all programs, calculate eligible assets from checking, stocks, and retirement accounts, and understand what is excluded. The Pro tier covers the down payment trade-off, liquid vs retirement reserve considerations, and gift fund rules for reserves.

What Are Mortgage Reserves?

Mortgage reserves are funds you must have available after closing on your home. They are not used at closing — they prove to the lender that you have a financial cushion to cover payments if your income temporarily stops. Reserves are measured in months of PITI (principal, interest, taxes, insurance — your total monthly housing payment).

Example: If your monthly PITI is $2,000 and the lender requires 3 months of reserves, you need $6,000 left in accessible accounts after closing on your home.

Required Reserves ($) = Required Months × Monthly PITI Payment

Post-Closing Cash = Current Savings − Down Payment − Closing Costs

Reserve Status: Post-Closing Cash ≥ Required Reserves ($) = Sufficient

Reserve Requirements by Program — Quick Reference

Conventional (Primary, 1-unit)0–2 months (AUS-determined by credit, LTV)
Conventional (2nd Home)2–6 months
Conventional (Investment)6 months per financed investment property
FHA (1–2 unit)1 month minimum
FHA (3–4 unit)3 months minimum
VA (Primary)No requirement (residual income standard instead)
VA (Investment property)6 months per property
USDANo reserve requirement
Jumbo6–12 months standard; up to 18 months for investment

How Different Assets Count Toward Reserves

Lenders apply discount factors to different asset types based on how quickly they can be converted to cash without penalty:

Frequently Asked Questions

Requirements vary by program: Conventional primary residences typically require 0–2 months; FHA requires 1 month for 1–2 unit and 3 months for 3–4 unit; VA requires no reserves for primary; USDA requires no reserves; Jumbo loans require 6–12 months. Investment properties and second homes have higher requirements across all programs.
Generally no. Most programs — Conventional, FHA, USDA, and Jumbo — require reserves to be from the borrower's own seasoned funds (in the account 60–90 days). VA is the exception. If you received a gift, depositing it 90+ days before your loan application converts it to seasoned borrower funds.
After closing. Reserves are measured based on what you will have left after paying all closing costs and down payment. If you have $80,000 today but will spend $70,000 at closing, your post-closing reserves are $10,000 — not $80,000. This is a critical distinction many first-time buyers miss.
First, calculate the minimum reserves required for your program. Then put any excess toward the down payment. If putting 20% down leaves you below the reserve minimum, reduce your down payment (15% or even 10%) to preserve cash. A loan with adequate reserves at 15% down beats a loan rejected for insufficient reserves at 20% down.
Significantly. Conventional requires 6 months PITI per financed investment property — on every property, not just the new one. Owning two financed investment properties while buying a third could require $30,000–$60,000+ in reserves just to satisfy the investment property reserve requirement, plus reserves for the primary purchase.

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