Buying a high-value home with a jumbo loan, step by step
Step 2: cash reserves after closing
In brief
Reserves are the money you would still have after paying the down payment and closing costs, usually measured in months of housing payments. Jumbo lenders often ask for more reserves than conforming programs. Checking, savings, and often a share of retirement or investment balances can count, depending on the lender's rules.
Last reviewed against the primary sources listed below.
Getting statements ready
- Keep full statements, every page, for each account.
- Be ready to explain large deposits with a paper trail.
- Avoid moving money between accounts during the process without telling the lender.
Where the rules come from
Conforming reserve rules are in Fannie Mae's minimum reserve requirements. Jumbo lenders write their own, often stricter, versions.
Buyer questions
Do retirement accounts count as reserves for a jumbo loan?
Often in part, depending on the lender. Ask how each account type is counted before you apply.