Reserves

Reserves are liquid assets the borrower must demonstrate after closing, expressed in months of full mortgage payment coverage. Conventional loans typically require 2-6 months of reserves; investment-property loans often require 6-12 months. The requirement protects the lender against short-term borrower setbacks.

Reserves are traditionally counted in cash, savings accounts, brokerage accounts, and (with some haircuts) retirement accounts. Most lenders won't count crypto toward reserves; the crypto needs to be liquidated first.

Why it matters for Milo customers

Milo is one of few major lenders that counts crypto holdings as reserves, even without requiring liquidation. For borrowers whose net worth is concentrated in Bitcoin or Ethereum, this is the difference between qualifying and being turned down. The self-custody mortgage product is built around exactly this mechanic.

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