Proof of Funds With Financing

[Kyle Majors]

Hey BP, 

I was wondering if you are financing an acquisition with debt and equity, is it necessary to show proof of funds for anything besides your equity portion? 

Thanks!

[Jonathan Bombaci]

I've never had to show proof of funds when purchasing my investment properties. The letter from your lender plus the earnest money deposit should be all they need. 

Now if you were doing a CASH offer then you need to show proof of funds. If your offer includes a very large downpayment then they may ask for proof of funds but that would be an exception to the rule and in my opinion not the norm.