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