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Fannie Mae – Reserve Requirements for Note Holder vs. Title Holder
Question:
In a Refinance of investment property, the loan is in the father’s name only, but the title was and will continue to be in the son’s name, who occupies the property.
Can the son, co-owner, provide the 6-month reserves needed?
Answer:
The reserves must be the father’s reserves and cannot be from any party not on the loan, regardless of holding ownership in the property. If the son will be on the loan with the father, then assets from the son can be used; otherwise, no consideration is given to the son’s assets, income, or liabilities.