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When mortgage lenders mention cash reserves, they are talking about extra money the borrower has in the bank at the time of underwriting and closing. The amount is typically expressed in terms of monthly mortgage payments.
For instance, a lender might require borrowers to have three months worth of payments in the bank at closing. This is above and beyond the amount required for secured personal loans with collateral down payment and closing costs, by the way. Its extra money kept in reserve to cover the monthly payments hence the term.
Why do some lenders have cash-reserve requirements.