Proof of Funds Letter Request
Proof of funds letters come in two different forms. The traditional proof of funds letter is issued by the offeror’s bank and the purpose is to show the cash that is available in the person’s account. This type of proof of funds letter, of course, requires that the investor that is making the offer actually has a significant amount of cash in their bank account.
What about all those investors that do not have bank accounts bulging with money? That’s where the private funding proof of funds letter comes into play. These letters are issued by private real estate funding sources and these letters basically state that the money is available in the private funder’s bank account. In many cases, this type of proof of funds letter will suffice such as when making offers on REOs or standard transactions. That is the proof of funds letter you can get access to on this page.
However, recently, when submitting short sale offers, numerous banks have begun flagging private funding proof of funds letters as being an indication that a flip may be coming. Therefore, many of the short sale offers investors are making using a private funding proof of funds letter are being denied. Therefore, if you are making a short sale offer, do not use the private funding proof of funds letter you can obtain here. Instead, refer to your training materials on the alternative ways to satisfy the proof of funds / pre-approval letter requirement when submitting a short sale offer. Thankfully, there are numerous ways to handle this requirement outside of using a private funding proof of funds letter.
To obtain a private funding proof of funds letter, fill in the form below: