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And Fannie Mae makes it very clear that you cant be taking cash out because you need the money. cash proceeds from a cash-out refinance transaction on the subject property, say the guidelines. You may also need reserves for a primary residence if your credit score is below 660 or your down payment is on the small side. This is not universal, however - if Lender Smith kicks you to the curb, Lender Jones may put down the red carpet. It pays to shop. Calculating Reserve Requirements.