Reserves are liquid assets that remain after cash to close, measured as months of PITIA — principal, interest, taxes, insurance, and association dues when they apply. They are not extra closing costs you write a check for at the table. Snapshot as of 2026-08. This page does not publish a single required number of months.
Required months depend on occupancy, program, unit count, and overlays. A primary 1-unit file may need few or no months; investment and 2–4 unit files commonly need more. Relocation / future-employment paths can add reserve tests. This page does not publish a single required number.
Cash to close vs reserves
| Question | Cash to close | Reserves (months of PITIA) |
|---|---|---|
| What it is | Down payment, remaining earnest, closing costs, and prepaids due at the table (minus credits). | Reserves are liquid assets remaining after cash to close, measured as months of PITIA (principal, interest, taxes, insurance, and association dues when they apply). |
| Where the money sits | Leaves your accounts at closing (or was already earnest). | Stays in documented accounts after closing. It is still sourced. |
Earnest money that already left your account is not also reserves.
Utah cash stack: cash besides down payment. Earnest vs down vs costs: three cash lines. HOA in the payment: DTI with HOA.
What usually counts
Checking, savings, and many vested brokerage and retirement accounts can count, often with haircuts on retirement. The cash that pays earnest money, down payment, and closing costs is not also reserves. Gift funds are often limited or excluded as reserves — confirm the program.
- Checking and savings in the borrower’s name, seasoned and sourced.
- Brokerage accounts, often with a haircut on stocks.
- Retirement accounts, often with a larger haircut if accessible.
- Not: the same dollars already used for down payment, and often not undocumented cash.
When months go up
- Investment occupancy and 2–4 unit files commonly need more months than a primary 1-unit. See investment financing.
- Some future-employment / relocation paths add reserve tests: That no-paystub path typically adds reserve tests: often six months’ PITIA, or liquid resources to cover counted monthly liabilities (including the new PITIA) for the months between the note date and the start date, plus one. Confirm the guide in force. Guide: job seasoning when work starts in 60 days.
- Non-QM overlays (DSCR, asset-depletion, bank-statement) often set their own reserve months.
What happens next
- Keep two months of statements. Large deposits in that window still have to be sourced.
- Do not spend the “reserve” account down to pay furniture after you are under contract without asking.
- Hub: first-time cash and closing. Affordability illustrations: affordability calculator.
Common questions
Keep going
What to do next
Education first. A conversation with a loan officer is how you find out what may actually fit your file.
Loan information is provided by Ondo Real Estate (NMLS ID on file). This is not a commitment to lend, a loan approval, or an offer of credit. Rates, terms, and payments shown are estimates for illustration only, are not a quote, and are subject to credit approval, underwriting, and market conditions. You are not required to use Ondo for financing to buy or sell with Ondo. Equal Housing Lender. Program rules, fees, and county loan limits change. Confirm the current published schedule and lender overlays. Nothing here is a quote, a lock, or a credit decision. Licensing and disclosures