What Is a Proof of Funds Letter and How Do You Get One?
A proof of funds letter shows sellers you can close. Learn what it is, what it should say, and how to get one fast before you make offers.
A proof of funds (POF) letter is a document showing a seller or agent that you have the capital, or the financing, to close on a deal. For investors using a lender, it is usually a letter from that lender confirming you are pre-qualified to fund up to a certain amount, subject to full underwriting.
Why you need one
Sellers, agents, and auctions want confidence you can perform before they accept your offer, especially on cash or fast-close deals. A POF letter makes your offer credible and competitive.
What a strong POF letter includes
- Your name or entity
- The lender's confirmation that you are pre-qualified to fund
- A maximum amount or price range
- A recent date and lender contact
How to get one
A private lender can often issue a proof-of-funds letter after a short pre-qualification, sometimes before you are even under contract. Have your basics ready, the kind of deals you target, your entity, and your typical price range, and a lender can turn one around quickly.
Frequently asked
Rates, leverage, and timelines mentioned in this guide are typical figures, subject to underwriting and market conditions. Not a commitment to lend. Nothing here is legal, tax, or investment advice.
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