Cash Reserves and HMLS

Hi, I have a question…

traditional lenders for NOO want 6 months cash reserves, plus down, closing, and fees. etc.

Is this also true of HMLs?

Not always, and in the cases that reserves apply, sourcing (where it came from) and seasoning (how long you had it) are usually overlooked.

Regards,

Scott Miller

Another comment to your original statement.

There are conventional lenders that allow for either no reserves and/or no seasoning of funds for closing for NOO property transactions (whether it be purchase, rate and term or cash out refinance).

As reserves are a common risk offset for lenders in this niche, those programs that don’t require reserves compensate risk with a lower LTV allowance.

Hope this clarifies matters for you and others.

Regards,

Scott Miller