Bank reserve requirements on jumbo mortgages

1 year.

6 months of reserves

I was right in the middle - 9 months of reserves. It was something like 50% of retirement funds. And, any funds you end up liquidating to pay for the down payment do not count as reserves, just be careful when you are submitting your reserves proof that you are separating out down payment amounts.

I used Citibank for a jumbo and closed back in September 2012. Citi required 9 months of reserves and permitted the use of only 60% of retirement fund balances to satisfy the reserve requirement on top of demonstrating reserves for the remaining downpayment owed to the seller. Hope this helps

The reserve requirements are different based on the loan amount. If you want to discuss please give me a call.

Jim McPartland
AVP, Mortgage Banking
Bank of America Home Loans
50 Rockefeller Plaza, 11th Fl.
New York, NY 10020
(646) 556-0207 Direct
(917) 993-2358 Mobile
(866) 614-4829 Fax
james.mcpartland@bankofamerica.com
NMLS#614743

Thanks all, this seems like a breeze compared to getting through another coop board - especially considering that at least a portion of 401K balance could be considerecd.

The fact that banks allow you to use a portion of your 401(k) balance but co-ops do not tells you something right there about what co-ops did RIGHT and banks did WRONG in precipitating the whole mortgage meltdown.

@NYCmatt, why? cash is cash, if you can pull 100k from your 401k and this is enough to get you through a years worth of living without a job then it may be detrimental to "your" retirement plans but not detrimental to "the bank" getting paid.