There is no single number: under Fannie Mae's DU a one-unit principal residence needs no minimum reserves, a second home needs two months and a two- to four-unit principal residence or investment property needs six months, while FHA requires three months' PITI for three- to four-unit properties and VA generally requires none. Freddie Mac uses the reserves stated on the Loan Product Advisor Feedback Certificate, and its manual rules require six months for a two- to four-unit primary residence. VA requires reserves when rental income is used to qualify: 3 months' PITI for each rental property, or 6 months' PITI for a multi-unit property the Veteran will occupy. Non-QM minimums are set by each lender; AD Mortgage's Non-QM guide, for example, ties them to loan amount.
Fannie Mae (conventional)
- DU loan casefiles: there is no minimum reserve requirement for a one-unit principal residence transaction. Fannie Mae B3-4.1-01
- DU requires two months' reserves for a second home and six months' for a two- to four-unit principal residence, an investment property, or a cash-out refinance with a DTI ratio above 45%. Fannie Mae B3-4.1-01
- Manually underwritten loans: the Eligibility Matrix sets minimum reserves by credit score, LTV and DTI. For a two-unit or three- to four-unit principal residence purchase or limited cash-out refinance it shows six months in both DTI columns; one-unit requirements vary. Fannie Mae B3-4.1-01 Fannie Mae Eligibility Matrix
- For a second home or investment property, borrowers with other financed properties need additional reserves of 2% of those properties' aggregate unpaid principal balance (one to four financed properties), 4% (five to six) or 6% (seven to ten, DU only). Fannie Mae B3-4.1-01
Freddie Mac (conventional)
- Loan Product Advisor mortgages: the seller must verify all reserves required by Loan Product Advisor, as stated on the Feedback Certificate. Freddie Mac 5501.2
- Manually underwritten mortgages: no reserves for a one-unit primary residence; six months for the subject property on a two- to four-unit primary residence. Freddie Mac 5501.2
- Second home and investment property mortgages must be Accept Mortgages, so the manual reserves table covers primary residences only. Freddie Mac 4201.12 Freddie Mac 4201.13
FHA
- TOTAL Mortgage Scorecard: three months' PITI after closing for three- to four-unit properties, and two months' PITI for a one-unit property with an ADU when rental income is used as effective income. FHA 4000.1 II.A.4.d.i
- Manual underwriting: one month's PITI after closing for one- to two-unit properties and three months' PITI for three- to four-unit properties. FHA 4000.1 II.A.5.c.i
- For manual underwriting, reserves exclude cash-out proceeds, gift funds, equity in another property and borrowed funds. FHA 4000.1 II.A.5.c.i
VA
- VA does not require cash to cover a set number of mortgage payments, but the borrower's liquid assets should be considered in the overall credit analysis. VA Pamphlet 26-7, Chapter 4, Topic 4
- To count income from other rental properties the borrower owns, at least 3 months' PITI in cash reserves must be documented for each property; equity in the property and gift funds cannot be used. VA Pamphlet 26-7, Chapter 4, Topic 2.n
- To use prospective rental income from a multi-unit property the Veteran will occupy, cash reserves must total at least 6 months' PITI (6 months for each unit if units are separately mortgaged); reserves must be the borrower's own funds, not a gift or equity. VA Pamphlet 26-7, Chapter 4, Topic 2.n
Non-QM lender examples
- AD Mortgage's Non-QM guide sets minimum reserves by loan amount: 3 months up to $1,000,000, 6 months from $1,000,001 to $2,000,000, and 12 months above $2,000,000. AD Mortgage Non-QM Guidelines 6.8.6
- UWM's Bank Statement Blue guide requires 6 months' subject PITI(A) up to $2,000,000; from $2,000,001 to $3,000,000, 9 months for primary and second homes and 12 months for investment properties. Reserves must be seasoned 60 days. UWM Bank Statement Blue Guidelines
- Cake's Non-QM guidelines refer to its matrix for minimums and waive reserves on rate-and-term refinances that save 10% or more on the payment, except when DTI exceeds 50%. Cake NQM 5.0 Guidelines 8.7
Sources
- Fannie Mae Selling Guide, September 2, 2026 version: B3-4.1-01, Minimum Reserve Requirements (p. 411); B3-4.1-01, Minimum Reserve Requirements (Calculation of Reserves for Multiple Financed Properties) (p. 412)
- Fannie Mae Eligibility Matrix, August 5, 2026 version: Standard Eligibility Requirements - Manual Underwriting (PDF p. 4)
- Freddie Mac Single-Family Seller/Servicer Guide, September 16, 2026 version: 5501.2(b), Minimum required reserves (p. 5501-13); 4201.12(a), Eligibility requirements (second home Mortgages) (p. 4201-9); 4201.13(a), Eligibility requirements (Investment Property Mortgages) (p. 4201-12)
- FHA Single Family Housing Policy Handbook 4000.1, August 12, 2026 version: II.A.4.d.i(C), Reserves (TOTAL) (p. 253); II.A.5.c.i(C), Reserves (Manual) (p. 332)
- VA Lender's Handbook (VA Pamphlet 26-7), August 12, 2026 version: Chapter 4, Topic 4, Assets and Amount of Cash Required for Closing (PDF p. 93); Chapter 4, Topic 2.n, Rental Income (Verification of Rental Property Income) (PDF p. 88); Chapter 4, Topic 2.n, Rental Income (Analysis of Multi-Unit Property Securing the VA loan) (PDF p. 89)
- AD Mortgage Non-QM Loan Eligibility Guidelines, September 24, 2026 version: 6.8.6, Reserves (p. 70, 71)
- UWM Bank Statement Blue Guidelines, September 16, 2026 version: Required Reserves (PDF p. 27)
- Cake Non-QM 5.0 Guidelines, September 30, 2026 version: 8.7 Reserves (PDF p. 32)
Agency guides set the baseline; individual lenders can add stricter overlays. Sources are the guideline versions in Zeitro Strata as of October 29, 2026.
