# Reserves

> Reserves are the savings you still have after closing, counted in months of your new mortgage payment. What counts and the Fannie Mae minimums.

URL: https://mortgage-math-us.com/glossary/reserves/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

**Reserves** are the liquid savings you’ll still have after closing, measured in months of your new mortgage payment (principal, interest, taxes, insurance and any HOA dues). Money in checking, savings and other accounts you can draw on counts; the cash you need to close doesn’t, and some loans require a minimum number of months.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| Fannie Mae minimum, second home | 2 months | [Fannie Mae Selling Guide B3-4.1-01](https://selling-guide.fanniemae.com/sel/b3-4.1-01/minimum-reserve-requirements) | Aug 7, 2024 |
| Fannie Mae minimum, 2–4 units, investment property or high-DTI cash-out | 6 months | [Fannie Mae Selling Guide B3-4.1-01](https://selling-guide.fanniemae.com/sel/b3-4.1-01/minimum-reserve-requirements) | Aug 7, 2024 |

## Fannie Mae minimums

*Minimum reserves on loans approved through Desktop Underwriter*

| Property or transaction | Minimum |
|---|---|
| One-unit home you’ll live in | None, unless DU asks for more |
| Second home | 2 months |
| Two- to four-unit home you’ll live in, investment property, or cash-out refinance with DTI above 45% | 6 months |

Owning other financed properties adds to the requirement when you buy a second home or rental, and [manually underwritten](https://mortgage-math-us.com/glossary/manual-underwriting/) loans follow the levels in Fannie Mae’s Eligibility Matrix.

## In dollars

On a $360,000 home with 20% down at 7.24%, the full monthly payment is about $2,377 (try your own figures in the [mortgage payment calculator](https://mortgage-math-us.com/tools/mortgage-payment-calculator/)). Two months of reserves is $4,753; six months is $14,260. Even where none are required, reserves strengthen a borderline file in [automated underwriting](https://mortgage-math-us.com/glossary/automated-underwriting/) and give you a buffer after move-in. On Fannie Mae loans, a documented [gift](https://mortgage-math-us.com/glossary/gift-letter/) can count toward reserves. Planning a rental? See [buying a second home or rental](https://mortgage-math-us.com/blog/buying-a-second-home-or-rental/).

## Sources

- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=010XX00US) — Median value of owner-occupied homes (2024 ACS 1-year)
- [Freddie Mac Primary Mortgage Market Survey](https://www.freddiemac.com/pmms) — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- [Freddie Mac Research](https://www.freddiemac.com/research/insight/homeowners-insurance-costs) — Average homeowners insurance premium per $1,000 of home value (2023 data)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=010XX00US) — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- [Fannie Mae Selling Guide B3-4.1-01](https://selling-guide.fanniemae.com/sel/b3-4.1-01/minimum-reserve-requirements) — Fannie Mae minimum reserves, second home (DU loans); Fannie Mae minimum reserves: two- to four-unit principal residence, investment property, or cash-out refinance with DTI above 45% (DU loans) (Aug 7, 2024)
- [Fannie Mae Eligibility Matrix](https://singlefamily.fanniemae.com/media/20786/display)

_General information, not financial advice._