Pre-Approval/Proof of Funds Requirements

A PRE-APPROVAL or PROOF OF FUNDS is required with absolutely ALL HUD contracts.

MAKE SURE THE BUYER’S LENDER OR BANKER ARE AWARE OF THE FOLLOWING REQUIREMENTS FOR THESE DOCUMENTS:

PRE-APPROVAL LETTER REQUIREMENTS

  • Printed with letterhead of lender and must be signed by the lender
  • Includes property address
  • INCLUDES HUD CASE #
  • INCLUDES FULL LEGAL NAME OF BUYER (as it appears on ID or driver’s license)
  • DATED WITHIN 30 DAYS OF THE BID ACCEPTANCE DATE
  • Confirms the type of financing and the terms the buyer has applied for
  • Method of financing on Pre-Approval must match method of financing on contract
  • Confirms the amount the buyer has been approved for
  • Confirms that a full report of the buyer’s credit has been obtained and reviewed
  • If for any reason the loan amount does not cover the purchase price a PROOF OF FUNDS letter for the difference is also required

PROOF OF CASH FUNDS AVAILABLE (PROOF OF FUNDS) REQUIREMENTS

  • Copy of bank statement verifying funds are available
  • Account number may be “blacked out” on bank statements and related documents
  • Buyer’s full legal name must be on the statement, regardless of document type
  • Statement must be dated within 30 days of bid acceptance date
  • Available account balance must meet or be greater than the gross purchase price