Mortgage Navigator • Conventional • Assets & Reserves
Retirement accounts
A retirement account does not have to be cashed out simply to count as reserves.
Fannie
Vested IRA, SEP, Keogh and tax-favored retirement savings accounts such as 401(k)s can be eligible for down payment, closing costs and reserves when ownership, vesting and accessibility are documented.
Reserves
When eligible retirement funds are used only as reserves, Fannie does not require the borrower to withdraw the money.
Agency Difference: Freddie also permits eligible retirement assets, but valuation and accessibility documentation must follow Section 5501.3 and the applicable LPA documentation path.
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.