• http://www.facebook.com/profile.php?id=667891609 Andrea Beck

    I’m finding your blog very interesting. My husband and I are trying to refinance our condo and are stuck over the capital reserve issue. The odd thing is, Chase is claiming that the contingency line item in the annual budget has to equal 10% or more of the total annual operating budget. We have about 30% of our annual operating expenses in reserve–but only 6.5% of the budget as contingency– and they aren’t accepting that. Have the guidelines changed since you wrote this or is there a misinterpretation here?

  • Betsy

    Is there a way to add the current reserves into the annual budget as reserved income so it will increase the current  reserve budget of 10%? Obviously I am not an accountant, but the existing funds should account for something.

  • Conor

    Thanks for the information. Let’s say you have an operating budget of $70,000. You put $7,000 in the reserve account. Does that amount become cumulative? Year one: $7,000 goes in… year two: another $7,000 goes in.

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