Furthermore, if the borrower's employment is interrupted for any reason, the borrowers would have enough cash in reserve to pay their mortgage. The amount of cash reserves is qualified by the number of payments the borrower can make on his or her total housing expenditure (the total of the principal and interest payment, taxes, insurance, homeowners insurance, mortgage insurance, and any other applicable charges) before the reserves are completely exhausted. Often lenders will require anywhere from two to twelve months of payments in reserve. If a borrower is applying for an FHA (Federal Housing Administration), there are no reserves required.