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6 Ways How To Show Proof Of Funds To Buy House With Cash



If you’re looking to buy a house with cash, you’ll need to prove that you have enough money. In the United States, this means having enough funds in the bank account to pay for the house and its fees. Proof of funds is essential to buying a home because it shows lenders that money will be available if they lend it to you.

The amount needed varies depending on your credit score, income level, and other factors specific to your situation. Generally speaking, proof should cover at least 30% of what’s owed on the property (loan plus fees). Here are six ways how to show proof of funds to buy a house with cash:

What Is A Proof Of Funds?

A Proof of Funds document (POF) is a document that shows the seller or real estate agent that you have enough cash to pay for your purchase. It also shows them that your funds are in a legitimate bank account and not some questionable source such as an offshore account. If the seller doesn’t want to wait for your bank to confirm this information, they can ask for a POF letter instead.

The most important thing about a POF is it should look like a recent statement from your bank account. This way, if there’s any question about where the money came from, it will be easy for anyone reading it to see where it came from and ensure you have access to those funds at all times. If you want to learn more about proof of funds letters in the real estate industry, check out https://homesbyardor.com/proof-of-funds-letter/.

Methods To Show Proof Of Funds To Buy A House

There are many ways to show proof of funds when buying a home with cash. Some people will choose to have the amount deposited into an escrow account, and others may opt for a letter from their bank stating that they have sufficient liquid assets. Here are some other options:

Bank Statement

The most common way how to show proof of funds to buy a house with cash is a bank statement. A bank proof of funds statement shows the amount of money you have in your account and can be used as evidence that you have enough money to purchase the house.

The only requirement is the bank should be located in the same state where you are buying the home. Otherwise, it may not be accepted as mortgage proof of funds.

Moreover, the buyer should obtain his or her last three months’ statements from all accounts showing how much money is available for use. This includes savings, checking, and/or retirement accounts.

Then submit these documents with their offer when making an offer on a home. It’s important to note that sellers often request certification by an attorney or other professional source attesting that all documents are authentic before accepting them as proof of funds.

Personal Statement Of Assets

If you have a high net worth, you may be able to put down a larger deposit. If this is the case, showing proof of funds is essential when buying a house with cash. Your lender will want to see that your assets are large enough to cover the mortgage payments and other costs associated with home ownership.

When preparing your personal statement of investments, list all of your assets, including:

  • Cash on hand or in bank accounts
  • Stock holdings
  • Property (such as rental properties)

Include the value of each asset along with any liabilities that are tied up in those particular assets. For example, if you own stocks worth $1 million but owe $900k on one of those stocks due to margin trading (borrowing from an investment firm).

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In that case, include both amounts in your personal statement of assets. This way, the lender will know exactly what they’re dealing with when approving loans for homes using cash.

Certificate Of Deposit

Another way how to show proof of funds to buy a house with cash is to consider using a certificate of deposit (CD). CDs are investments made by depositing money into an account for a specified period.

You give up access to your money for this period in exchange for returns on your investment. This can be beneficial if you need to save money but not spend it immediately or if you want to safeguard its value against inflation and market downturns.

When using a CD as a real estate proof of funds, remember that the amount of interest earned varies from institution to institution. Different types of CDs have other terms.

Some require that investors withdraw their funds before the end date; others allow them full access after it expires, yet others only pay out earnings at maturity. The benefit of choosing one over another is based on what best suits your situation when buying a property with cash.

Letter From Your Bank

A letter from your bank can be among the best ways how to show proof of funds to buy a house with cash. This is because it is a document that states that you have enough money in your account to purchase the property. Also, the letter details this amount and explains why it should be considered a proof of funds letter for real estate.

It is important to note that not all banks will allow their customers to get such letters at first sight. This is especially true if they don’t have an existing relationship with them or are not regular clients. To get one, you need to ask your bank manager’s permission before signing up for any loan or mortgage agreement.

Securities Account Statement

A securities account statement verifies that you have the money to buy a house with cash. It will be used as proof of funds in many cases. This method works so well because it shows how much money you have deposited in your savings account. Also, the statement contains information about the stocks and bonds owned by the person applying for financing for buying a house with cash.

If you want to use this method, ensure to get a securities account statement from any financial institutions that hold your investments, such as banks or credit unions. They should provide these documents upon request. However, they may require additional time if they need approval from higher authorities before granting access to such information regarding client accounts.

Mutual Fund Account Statement

Mutual fund account statements are one of the ways how to show proof of funds to buy a house with cash. A mutual fund account statement should be issued by your broker every year and will show all of the different investments that you have made over time. This is a great way to show proof of funds because it will show how much money has been invested in each asset and how much return they have generated over time.

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The main advantage of using this method is that it shows how wealthy someone is without taking out their entire net worth on paper. Additionally, it provides detailed information about what assets were purchased with those funds and how much profit was made off them during their lifetime. This can help give potential lenders confidence in their decision-making process when whether or not they want to spend their cash on buying property instead.

What to Do If You Don’t Have Enough Proof Of Funds

If you don’t have enough proof of funds to buy a house with cash, there are still ways to purchase a home. These include:

Apply For a Zero Down VA Loan or Usda Loan

The VA and USDA programs will allow buyers without a down payment to qualify for mortgages at lower interest rates than conventional financing.

Use Down Payment Assistance

Several non-profit organizations provide grants or low-interest loans for buyer closing costs, including FHA’s HomeReady program and the USDA Rural Development Guaranteed Housing Loan Program.

Ask a Family Member for a Down Payment Gift

Suppose someone wants to help you by giving you money for your home purchase. In that case, this is one way they can do so without affecting their own financial situation since they won’t be losing anything.

It won’t affect them even if they wouldn’t usually afford such generosity with their own money. This is because they’re just gifting away something they’re not using anyway, so there’s no harm done.

Get the Lender to Pay the Closing Costs

Some lenders offer programs where they will pay all or part of your closing costs up front as long as certain conditions are met (usually based on credit score). This helps offset some upfront cost burden when buying property today while still keeping payments low over time. This is mainly because we don’t pay much interest when making monthly payments.


When buying a house, you want to be sure you have the funds to do so. The last thing you want is to take out a loan and then be unable to pay it back. Therefore, make sure you’ve got all your ducks in a row before you start looking for your dream home.

Remember, if you’re looking for a way to show proof of funds, there are many ways to do it. Just make sure that whatever method you choose aligns with your needs and fits within your budget.

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