BOA REO Prequalification Requiring 20% Down

[Jerry Calhoun]

Hi Everyone... Ok, this is my very first post on just about anything ever so please bear with me as I try to get my thought out coherently.

I am interested in bidding on a BOA REO and one of the requirements, as most of you here already know, is to prequalify through them even though I already have financing lined up. Anyways, I went through their prequal procedures and was granted their approval letter but they are requiring me to put 20% down instead of the 10% that I have already been approved for by a different lender.

Due to the nature of my current employment they were excluding some of my annual salary even though I have been receiving it for the past 6 years and have no indication of not continuing in the future. The BOA officer said I still qualified just with my base salary but was adamant about requiring the 20% down even though this is to be my second home and should not have to be considered an investment property. I have the 20% to put down but would rather keep the additional funds if possible so I can invest in another property, though that was never mentioned to the loan officer.

My question is.... does this mean they will verify at closing or something that I have obtained financing for 80% rather than the 90% I already have? Would they not close if I still went with the 90% funding? Any advice?

Thanks much in advance for any tidbits of wisdom out there....