---
title: "Reserves — What It Means | Ondo RE"
canonical: https://www.ondorealestate.com/glossary/reserves/
---

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Mortgage & lending[All terms starting with R](/glossary/#letter-R)

# Reserves

Also called: cash reserves, months of reserves, pitia reserves

Liquid assets left after closing, measured in how many months of the full housing payment they would cover.

Reserves are counted in months of PITIA remaining after the down payment and closing costs are paid. Requirements rise with investment properties, multiple financed properties, and weaker compensating factors.

Retirement accounts often count at a discounted value rather than in full, and the funds generally have to be documented and sourced like any other asset.

## Related terms

- [PITIPrincipal, Interest, Taxes and Insurance, the four parts of a typical monthly mortgage payment.](/glossary/piti/)
- [UnderwritingThe lender’s review of your credit, income, assets, and the property to decide whether the loan can be made.](/glossary/underwriting/)
- [Jumbo loanA mortgage larger than the conforming limit for its county, underwritten to the lender’s own standards.](/glossary/jumbo-loan/)
- [Gift fundsMoney from an eligible donor toward your down payment or closing costs, allowed when documented with a clear paper trail.](/glossary/gift-funds/)

## Go deeper

- [How reserves are counted](/blog/mortgage-reserves-months-of-pitia/)

## More in Mortgage & lending

- [Amortization](/glossary/amortization/)
- [APR (Annual Percentage Rate)](/glossary/apr/)
- [ARM (Adjustable-Rate Mortgage)](/glossary/arm/)
- [Cash-out refinance](/glossary/cash-out-refinance/)
- [Closing costs](/glossary/closing-costs/)
- [Conforming loan](/glossary/conforming-loan/)

## Have a question about your own situation?

Ondo handles brokerage, lending, property management and notary under one roof, so the answer does not change depending on who you ask.

[Talk to Ondo](/contact/)[Browse all terms](/glossary/)

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