What Is Proof of Funds (POF)?
Also known as: POF
Proof of funds (POF) is documentation, usually a bank statement or a lender letter, showing that a buyer has the cash available to complete a purchase. Sellers and agents often require it before accepting an offer.
Proof of funds (POF) is documentation, usually a bank statement or a lender letter, showing that a buyer has the cash available to complete a purchase. Sellers and agents often require it before accepting an offer.
Proof of Funds (POF) explained
POF gives a cash offer credibility. When a wholesaler or their end buyer makes an offer without financing contingencies, the seller wants assurance the money is real. A proof-of-funds document, often a recent bank statement or a letter from a transactional or private lender, provides that assurance.
Wholesalers may present POF when making offers, particularly on agent-listed or bank-owned properties. Because the wholesaler often is not the party ultimately bringing the cash, they typically rely on their cash buyer's funds or a transactional lender's POF letter. Keeping a current POF ready speeds up offer acceptance and signals professionalism.
Example
To submit an offer on an agent-listed property, you include a proof-of-funds letter from your transactional lender showing access to the purchase amount. The listing agent accepts the offer as a credible cash deal.
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