How much cash do I need left after closing?
Six months of the full housing payment is what Fannie Mae's software looks for on a conventional loan for a two-to-four unit home you will live in. FHA asks for three months on a three- or four-unit home, and less on a duplex.
WHAT MOST PEOPLE ARE NEVER TOLD
The money does not all have to be cash in checking. Fannie Mae counts savings, stocks, vested retirement accounts and eligible gift money toward these months.
Lenders call this money reserves. It is what you still have after the down payment and closing costs are paid. It is counted in months of the full payment: principal, interest, taxes, insurance and any dues.
On a one-unit house Fannie Mae's software sets no minimum, and with a second unit it asks for six months. A duplex on an FHA loan needs one month when a person, not the software, reviews your application. When FHA's software approves it, the handbook sets no fixed number of months. A house with an ADU is a one-unit home, and FHA asks for two months if you use the ADU's rent.
Unsecured personal loans do not count. On an FHA loan reviewed by a person, gift money does not count toward these months.
Get three figures before you shop: the down payment, the closing costs and these months.
GOOD TO KNOW
Ask your lender for its exact number: Fannie Mae's software can ask for more than six months, and a lender may add its own rule. This is the floor for approval, so keep a repair fund beside it for an empty unit or a failed water heater.
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WHERE THIS COMES FROM
- Fannie Mae Selling Guide B3-4.1-01, Minimum Reserve Requirements (08/07/2024)
- HUD Handbook 4000.1 (FHA), revised 8/12/2026: reserves, printed pages 253 and 332
- HUD Mortgagee Letter 2023-17 (October 16, 2023), Revisions to Rental Income Policies, Property Eligibility, and Appraisal Protocols for Accessory Dwelling Units
Researched and written by Series Homes. Checked against its sources on . Lending rules change. This page is general information, not a loan offer or legal or tax advice.