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What is the freddie mac reserve requirements second home?

by fredgoaalen721 from St. Paul, Minnesota. Sep 10th 2015 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,722 contributions

It's really based on the Freddie Mac's Loan Prospector Automated Underwriting System (AUS) Results. When you apply for a loan, the lender runs your file through an AUS which tells what is necessary for your file to qualify for Freddie Mac. Based on the results, it will state how much reserves would be required.. there's not a standard answer.. Here's Freddie Mac's PDF detailing how they determine the required reserves. http://www.freddiemac.com/learn/pdfs/uw/reserves.pdf I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Sep 10th 2015
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Mary Chris Gallo (MaryChrisGallo)
#48 ranked lender in Minnesota - 116 contributions

This isn't nearly as easy to answer as you may think. Freddie's requirements for reserves depends on many, many factors not the least of which is whether the loan requires a manual underwriting or not. Is the second home the subject property? Is the second home a primary residence being converted to a second home? Etc. And the reserve requirement is in addition to the standard reserve requirement. Should you want to pursue this question, feel free to contact me. My office number is 952-851-8979.

Sep 10th 2015
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Mark Hemingway (SFSLend)
#1 ranked lender in Colorado - 998 contributions

Typically you do not need reserves but it really depends on many different factors. Freddie Mac loans have to get an automated approval thru their system. In this approval it outlines things such as income documentation that is required as well as assets. Regardless of the lender you go with will more than likely not change the AUS results that you receive

Sep 10th 2015
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