Home Buying in Oshkosh>Question Details

TammyJ, Home Buyer in Oshkosh, WI

Proof of Funds for Mother's account

Asked by TammyJ, Oshkosh, WI Tue Apr 1, 2014

I am receiving a gift from Mother for closing cost. Lender wants proof of funds for that gift. Will not accept a letter from the bank stating that there is enough money available. Must have a bank statement and will not let my mother black out her account numbers. Says it is a Federal Law. Is this valid

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Lenders usually want proof that there is sufficient amount to cover the debt and that the money is actually legitimate and not from any shady business. It is for the benefit of both parties. Other lenders are satisfied with proof of funds letter. If you want consult a financing firm or institution.
Or check sites like BestPOF.com to see how to properly set up your proof of funds. Best of luck and I hope this helps you. Cheers
0 votes Thank Flag Link Wed Apr 23, 2014
Hi Tammy,
As Amber has stated the lender is required by law to get a bank statement for proof that funds are in her account, its for your own safety. Best wishes Nan
0 votes Thank Flag Link Wed Apr 2, 2014
The lender wants to know exactly where your money came from, if there are blacked out areas then they do not know if the form is legitimate. All of the information that is provided to your lender is confidential and if they say they need the information for Federal Law then that also has to be correct because they can not tell you something that is not true. Lenders are highly regulated and it is not uncommon for them to ask for complete bank statements with all pages (even the blank ones). Some lenders will accept a proof of funds letter, but each lender is different. Good luck and I hope this gives you some insight. Thank you.
0 votes Thank Flag Link Tue Apr 1, 2014
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