Mortgage Glossary
Cash Reserves
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Cash reserves are liquid savings left after closing, measured in months of mortgage payments, that lenders may require.
What Cash Reserves means
Reserves show you can keep paying through a setback. Requirements rise for jumbo loans, investment properties, and weaker files. Some retirement funds count at a discount.
Florida example
A Florida investor buying a rental may need six months of cash reserves. On a $2,500 payment, that's $15,000 set aside after the down payment and closing costs are paid.
Related program: Learn more →
Related Mortgage Terms
Still have questions?
Talk to a licensed Florida mortgage broker — no cost, no obligation.