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However, with a second home, a multi-unit property, or investment real estate, you probably will. This would seem to leave out reserve worries for single-family prime residences, but maybe not.
You may need reserves if you want to cash out some home equity. Thats a little ironic, because if 20000 pounds personal loan cashing out equity it usually means you need cash - not that you have all these reserves lying around.
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.