---
title: "What Is Replacement Reserves? | Calibre Glossary"
description: "Replacement reserves are funds a borrower sets aside, usually through regular deposits to a lender-held account, to pay for future replacement of building."
url: https://calibre.multisites.ai/glossary/replacement-reserves
publisher: Calibre Commercial Inspections
phone: "+1-208-305-6245"
email: Schedule@CalibreCBI.com
---

Costs and capital planning

# Replacement Reserves

Replacement reserves are funds a borrower sets aside, usually through regular deposits to a lender-held account, to pay for future replacement of building components.

## Why it matters

Lenders size reserves from the property condition report and review them over the loan term. Higher reserves reduce cash flow but protect the asset. Servicers may adjust the amount using updated condition reports.

Source: [mf.freddiemac.com](https://mf.freddiemac.com/docs/chapters/mf_guide_ch_39.pdf)

[Related Calibre serviceProperty Condition Assessments](https://calibre.multisites.ai/cre-services/astm-property-condition-assessments)

## Where we discuss it

-   [Immediate Repairs vs. Replacement Reserves in a Property Condition Assessment](https://calibre.multisites.ai/cre-inspector-insights/immediate-repairs-vs-replacement-reserves-pca)
-   [ASTM E2018-24: What the Current Property Condition Assessment Standard Covers](https://calibre.multisites.ai/cre-inspector-insights/astm-e2018-24-property-condition-assessment-standard)
-   [PCA vs CBI: Which Commercial Inspection Report Works Best for You](https://calibre.multisites.ai/cre-inspector-insights/pca-or-cbi-which-inspection-report-works-best-for-you)

## Ready for your next inspection?

Tell us about the property and your timeline. We will scope the right report and send a proposal.

[Request a proposal](https://calibre.multisites.ai/request-proposal) [(208) 305-6245](tel:+12083056245)