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Lets say that your total monthly housing costs will be 1,000. If a lender says you need reserves for two months you must have 2,000. If your monthly housing cost is 1,500 then you would need 3,000.
Acceptable Sources Of Reserves. The lender is happy if you happen to have the required reserve in cash. For a lot of borrowers this is a high bar after a down payment and closing costs.