Reserve requirements
Reserves are assets left after closing—not the money being spent to close.
Fannie definition
Fannie defines reserves as liquid or near-liquid assets available to the borrower after closing. Funds needed for down payment, closing costs and other required uses are subtracted before reserves are measured.
Common acceptable reserve sources
Examples include checking/savings, publicly traded investments, vested retirement funds and vested life-insurance cash value.
Common exclusions
Fannie does not count non-vested funds, unsecured personal loans, IPCs, lender contributions, rent-back credits or cash-out proceeds from the subject cash-out refinance as reserves.
Official guide baseline
Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide
Asset eligibility depends on ownership, accessibility, documentation and how the funds are being used.