What are “Liquid Reserves”? When buying a home, lenders will look at your overall financial situation. Depending on your strengths or weaknesses [and trust me, most people have weaknesses so don’t let that hold you back], the underwriting systems may require reserves in order to qualify for a loan. Reserves show a lender that you still have some money left over after closing, to demonstrate financial stability. Reserves are not always required, so let’s talk and review your personal financial situation.
Related Article Title: Can Employer Profit Sharing be Used as Reserves? Question: Can we use profit sharing from an employer as reserves on a Fannie Mae loan? Answer: Here is what I have in the selling guide for Fannie Mae (Freddie is basically the same). Unfortunately, this is not listed as an eligible asset. I […]