Updated November 2026. For buyers working out how much cash has to survive closing day, and new owners rebuilding it. Reserve rules are from Fannie Mae’s Selling Guide, read November 7, 2026.
Plan to have three to six months of total housing costs left after buying a house, plus your insurance deductible and a repair fund. As of November 2026, Fannie Mae’s automated system sets no minimum reserve on a one-unit primary home, so that cushion is your own safety net rather than a loan rule.
Jump to: 💲 Your number · 🏢 Lender minimums · 🪜 What counts · 🏠 Repair fund · ⏱️ Keeping more · ❓ FAQ
Before you spend it all on the down payment
- A lender’s minimum and a safe amount are different numbers. On a one-unit primary home, the minimum can be zero.
- Fannie Mae counts funds to close first. Whatever’s left afterward is your reserve.
- Second homes need 2 months of payments and 2- to 4-unit primary homes need 6, under Fannie Mae’s automated underwriting.
- A conventional water heater typically lasts 6 to 12 years (InterNACHI), so check the ages in your inspection report.
Planning cash reserves for homeownership sounds abstract until the week after closing. The boxes are still taped, the account is at its lowest point in years, and the AC stops. Most buyer advice is about getting to the closing table. For that part, here’s how much cash you need to buy a $400,000 house. This page is about the morning after: how much should still be in the bank, why, and how to keep more of it without a smaller home.
How much money should you have left after buying a house?
Use a sum, not a rule of thumb. Add up four lines.
| Line | How to work it out | Example |
|---|---|---|
| Living cushion | Monthly principal, interest, taxes, insurance, HOA × 3 to 6 | $2,550 × 6 = $15,300 |
| Insurance deductible | From your declarations page | $2,500 |
| Repair fund, first year | Replacement quote ÷ years left, for each aging item | $1,800 |
| Move-in costs | Movers, locks, deposits, must-fix items | $1,500 |
| Target left after closing | $21,100 |
Those are made-up figures to show the math. Pick the low end of the range with two steady incomes, and the high end if you’re self-employed, on commission or the only earner.
Your payment can also rise after closing. The CFPB explains that taxes and insurance change from year to year, and your escrow payment changes with them. Our entry on property taxes covers the tax side. Keep a little room for that first adjustment.
How many months of reserves does a lender want?
It depends on the home and the loan. Fannie Mae’s Selling Guide, section B3-4.1-01, counts reserves in months of your qualifying payment. That payment is PITIA: principal, interest, taxes, insurance and association dues.
| Transaction (Fannie Mae DU) | Minimum reserves |
|---|---|
| One-unit primary home | No set minimum |
| Second home | 2 months |
| Two- to four-unit primary home | 6 months |
| Investment property | 6 months |
| Cash-out refinance with DTI over 45% | 6 months |
Two warnings. The system can still ask for more based on overall risk, and owners of several financed properties need extra. And FHA, VA and manually underwritten loans follow their own rules, so ask your lender for the number in writing early.
In Florida, Beycome Mortgage’s pre-approval is one place to get that answer before you make an offer. If your file has other soft spots, read our tips to buy a home with poor credit or our guide to buying a house with no money, which covers VA, USDA and FHA. Our list of surprises to avoid when buying a home is worth a look too.
Does your down payment count, and what money qualifies?
No. Funds to close come off first. Have $60,000 and need $55,000 at the table? Your reserve is $5,000, not $60,000. That’s the mistake we’d check for first.
Fannie Mae accepts checking and savings, stocks, bonds, mutual funds, CDs, money market funds and the vested part of a retirement account. It doesn’t count money you can’t withdraw before retirement, unvested funds or stock in a private company. Keeping deposits steady and traceable also makes them easier for a lender to verify.
Where should you keep it after closing?
Split by how fast you’d need it:
- Checking: about one month of housing costs, for a late paycheck or a same-day bill.
- Savings: several months, reachable in a day or two. A higher-interest savings option lets idle money earn something; compare rates, fees and FDIC insurance first.
- CDs or short-term Treasury bills: anything you won’t need this year. You may wait or pay a penalty to get it early.
A cushion is also the first of the best ways to protect your home loan when money gets tight.
How much should you save each year for home repairs?
Skip the percentage rules and look at your own house. Your inspection report lists the age of each system. Match those ages against InterNACHI’s life expectancy chart.
| Item | Typical life (years) |
|---|---|
| Conventional water heater | 6 to 12 |
| Central air conditioner | 7 to 15 |
| Heat pump | 10 to 15 |
| Furnace | 15 to 25 |
| 3-tab asphalt roof | 20 |
| Architectural asphalt roof | 30 |
Get a rough quote for each big item and divide it by the years it likely has left. A $1,500 water heater with two years left needs $750 a year. A roof with 20 years left barely registers. Add the lines up, then set a monthly transfer.
Sell smarter
List your home on the MLS from $99
A flat fee instead of a percentage, and $0 to Beycome at closing. You stay in control of your sale.
Sell your home →Buy smarter
Get up to 2% back at closing
On homes listed by other agents, Beycome credits you up to 2% of the price at closing (1% kept, $1,499 minimum; not on FSBO homes or homes listed by Beycome sellers).
Buy a home →Insurance won’t fill this gap. It pays for sudden damage, not wear, and you pay the cost of an insurance deductible yourself first. Our guide to what homeowners insurance doesn’t cover lists the usual gaps.
How can you keep more cash at closing?
Look at the money that leaves at the table before you shrink your cushion. Ask for a seller credit toward closing costs, compare title quotes, and read your Loan Estimate line by line.
Beycome’s buyer program is built for this moment. It has no upfront fee and is open to every buyer on homes listed by other agents, where the state allows it. Beycome keeps 1% of the price, minimum $1,499, and credits the rest of the buyer-agent commission offered at closing, with lender approval. On a $400,000 home with 3% offered, that’s $8,000 back.
That 3% commission is an example only. Commissions are not set by law or NAR rules and are negotiable. Sellers choose whether to offer buyer-agent compensation, and offers have not been shown on the MLS since August 17, 2024. Rebate rules vary by state: the credit isn’t offered in Alabama or Tennessee. It also can’t apply where no commission is offered, like most FSBO homes, or on homes listed by Beycome sellers.
Reserves matter on the way out too. When you sell, cash covers inspection fixes, movers and overlapping payments. See our guide to preserving cash flow as a seller, or the calculators for estimating home selling costs, planning a sale with a cost calculator and estimating your sale proceeds. Selling with Beycome starts from $99 in most states (see your state page), on the major home search sites and the MLS, with $0 due to Beycome at closing.
Money after closing: questions
How many months of reserves do I need to buy a house?
It depends on the loan. Fannie Mae’s DU sets no minimum for a one-unit primary home, two months for a second home and six for a 2- to 4-unit home or investment property.
What counts as reserves for a mortgage?
Checking and savings, stocks, bonds, mutual funds, CDs, money market funds and vested retirement funds. Unvested money and funds locked until retirement don’t count.
Is my down payment part of my reserves?
No. Fannie Mae subtracts the funds needed to close first. Reserves are what’s left after closing.
How much should a homeowner keep in an emergency fund?
Three to six months of full housing costs is a common target, plus your insurance deductible and a separate fund for repairs.
Can my monthly mortgage payment go up?
Yes, if it includes escrow. The CFPB notes taxes and insurance can change each year, and your escrow payment changes with them.
Where should I keep my home emergency fund?
One month in checking, a few months in an insured savings account, and anything you won’t need this year in CDs or short-term Treasury bills.
Is it OK to have no savings after buying a house?
A lender may allow it on a one-unit primary home, but it’s risky. One repair or missed paycheck goes straight onto a credit card. A longer save or a smaller down payment may be worth comparing.
Reserve rules are from Fannie Mae’s Selling Guide B3-4.1-01 for DU loan casefiles; manual underwriting, FHA, VA and other loans differ, and lenders may ask for more. Lifespans are InterNACHI estimates. Dollar examples use made-up figures. General information, not financial advice.
Buyer credit: no upfront fee; Beycome keeps 1% of the price, minimum $1,499; the rest of the buyer-agent commission offered is credited at closing with lender approval; not offered in Alabama or Tennessee; not on FSBO homes or homes listed by Beycome sellers; rules vary by state. Beycome Mortgage LLC, NMLS #2523620, is licensed in Florida only, and the buyer credit doesn’t depend on using it.
Beycome prices as of November 2026: Basic from $99 in most states ($129 in California and Illinois), Enhanced $399, Concierge $1,399. “$0 at closing” means no Beycome fee at closing; other closing costs still apply.
Sources
- Fannie Mae Selling Guide, B3-4.1-01 Minimum Reserve Requirements, read November 7, 2026.
- CFPB, What is an escrow or impound account?, read October 29, 2026.
- InterNACHI, Standard Estimated Life Expectancy Chart for Homes, read October 29, 2026.
- Forbes Advisor, Insurance deductibles, checked October 29, 2026.
- Beycome, buyer program, November 2026.
- Beycome, listing package features, November 2026.
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