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Do FHA Mortgage Lenders require reserves for manually underwritten loans?

Yes, the Mortgagee must verify and document Reserves equivalent to (1) one month’s Principal, Interest, Taxes, and Insurance (PITI) after closing for one- to two-unit Properties.  The Mortgagee must verify and document Reserves equivalent to (3) three months’ PITI after closing for three- to four-unit properties.

What are FHA mortgage reserves?

FHA Mortgage reserves are also called cash reserves these are funds that are accessible to the FHA mortgage applicant after they’ve paid their down payment and closing costs. The FHA reserve funds must be liquid or near liquid, meaning they can be quickly turned into cash.

FHA mortgage reserves are meant to cover future monthly mortgage payments in the event of a financial situation, and are calculated by how many payments you  have saved after you close the FHA mortgage. FHA mortgage reserves are the total monthly payment to include PITI principal, interest, property taxes and homeowners  and HOA- homeowners association dues.


US Mortgage Lenders has an extensive lender network that allows us to provide unique and mortgage solutions. Contact US for the most update information on terms and conditions. All Information on this site Is for example, hypothetical purposes and should NOT be relied on for decision making.
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