Mortgage reserve requirements (insurance, credit score, guidelines, lender)

[Jambo2012]

I am being told by my mortgage lender that I will need 18 months worth of reserves to qualify for a conventional jumbo mortgage. I am a first time buyer with a credit score of 740. I have limited credit history as I have only lived in the US for two years (which has also contributed to my (relatively) low score). I have no history of delinquency or any black marks on my credit. The mortgage amount is about 2.5 times my annual pre-tax income. I have a pretty conventional income with a small bonus component of about 15%. I have 8 years continuous employment with the same company. Principal-interest-tax-insurance each month will be about 29% of my monthly pre-tax base income (i.e. excluding bonus). The LTV on the mortgage will be 80%.

I am absolutely blown away by such a high reserve requirement. It amounts to more than half of my 50% downpayment. The highest i have ever heard of is 6 months. The one "risk" factor in my application from the bank's perspective, aside from the admittedly limited credit history, is that gift money represents about half of my down-payment, but does that really result in an 18 month reserve requirement?

I have told the lender that I will shop elsewhere and he is guaranteeing me that any lender following Fannie and Freddie guidelines will turn me down for a conventional mortgage without 18 months of reserves. I am assuming he is blowing smoke up my ass, but i am just curious as to whether anyone agrees with him.

[Jambo2012]

My apologies - I see that there is a dedicated forum for mortgage questions. I will re-post there.

[MrRational]

Focus on the word "jumbo"

[Jambo2012]

Thanks.