Reserves are liquid funds the borrower must hold post-closing to cover N months of PITI (Principal, Interest, Taxes, Insurance) or PITIA (PITI + Association dues). Investor programs typically require 3-12 months of reserves per loan, with portfolio-level multipliers on some programs. Foreign National programs run higher — 12-24 months PITIA. Reserves verify staying power if the property does not lease or the sale does not close on schedule.
Underwriting