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In some cases, it will kill the deal even when the borrower passes all of the other requirements with flying colors. Well-Qualified Borrowers Being Rejected. In some cases, borrowers dont learn about cash-reserve requirements until after theyve applied for the loan. That was the case for Brad and Melinda, a pair of veteran home buyers in Carlsbad, California.
They applied for a VA loan through Bank of America. Cash reserves were not mentioned up front.