An emergency or contingency fund (or credit) set aside and held in an easily accessible form (such as a savings account) for the purpose of meeting emergency expenses and/or short-term cash flow needs
Borrowers are required to have a cash reserve that equals two months PITI (Principal, Interest, Taxes and Insurance) payments after the loan has been closed (this is after closing costs and prepaid feeds are calculated)
A requirement of some lenders that buyers have cash remaining after closing Traditionally lenders have required borrowers to have reserves equal to two mortgage payments
An amount of money, usually equal to two or more monthly payments of a mortgage, which a lender requires a borrower to have after the closing of the mortgage
A sufficient amount of cash left over after closing on a mortgage loan to make the first two mortgage payments or to cover a financial emergency This amount is required by most mortgage lenders
An amount of money that the purchaser of a property still has after the transaction closes Some lenders require a certain level of cash reserve (equal to two payments) before granting a mortgage