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And Fannie Mae makes it very clear that you cant be taking cash out because you need the money. magnum cash advance loans proceeds from a cash-out refinance transaction on the subject property, say the guidelines.
You may also need reserves for a primary residence if your credit score is below 660 or your down payment is on the small side.
This is not universal, however - if Lender Smith kicks you to the curb, Lender Jones may put down the red carpet. It pays to shop. Calculating Reserve Requirements.
According to Fannie Mae, liquid reserves are those financial assets that are available to a borrower after a loan closes. Reserves are calculated as the total amount of liquid assets remaining after the loan transaction closes divided by the qualifying payment amount.
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