Bank requesting proof of down payment

Hi all, I recently starting submitting offers on REO’s to wholesale as my exit. Today my realtor called me with a bank requesting to show pof for the 10% down payment. I’m making cash offers subject to satisfactory inspection 30 day close. If I submit pof letter from hard money, why do I also have to show pof for down payment. Any info is greatly appreciated.

Thank you

He/she is probably talking about the escrow deposit. Some of the banks require 10% as earnest money, and sometimes you have to submit a copy of certified funds with your offer.

They all have different requirements.


Your purchase offer says you will be using financing. If there is a difference between the amount of your financing and the purchase price, then you need to bring cash to the closing. The bank wants to see proof that you have the cash on hand to bring to the closing to cover the downpayment and closing costs.

If this is not the case, if your financing is 100% of your purchase price, then the bank will want to see some sort of loan commitment letter from your hard money lender.

If you have already provided that letter, then the loan processor just needs to see that you have the funds available to pay the closing costs.

OK, I understand that they want to see proof. I sent a proof of funds letter with my offer and they didn’t counter my offer but want proof of 10% down payment. How do I show 10% proof with no idea of a purchase amount?

How much is your offer? How much is 10% of that? That amount is how much you have to prove.

If you have that much cash on deposit in your bank account, submit the last two month’s bank statements showing that you have seasoned funds on deposit to cover the downpayment.