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Or is this a standard requirement across the industry. The short answer is yes, there are mortgage lenders out there that do not require borrowers to have cash reserves. There are also lenders with stricter requirements of up to six months cash reserves, or even 12 months for jumbo loans. And finally, there are some companies in the instant cash loans india, requiring borrowers to have one or two months worth of mortgage payments in the bank prior to closing.
So its a broad spectrum. Before we go any further, let me explain what cash reserves are and why some lenders require them.
Definition of Cash Reserves, in a Mortgage Context. When mortgage lenders mention cash reserves, they are talking about extra money the borrower has in the bank at the time of underwriting and closing.
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