P.I.T.I. Reserves

P.I.T.I. Reserves – Cash reserves that a buyer is required to have on hand after their down payment is made. These are funds to protect a lender against default and are a set number of months of housing payments.

  • Example: Some types of higher leverage loans require a borrower to have a set number of months of housing payments saved away called, P.I.T.T. reserves, which give extra protection to the lender that the borrower will make the payments.
Print Friendly

Facebook Comments


Powered by Facebook Comments