What is a proof of funds letter?

A document from the institution holding your money that states, as of a recent date, that you have a given amount of liquid funds available. In real estate it is attached to a cash offer, or used to show closing funds on a financed purchase, so the seller knows the money to close exists before taking the home off the market.

What does a proof of funds letter need to show?

Your name as it will appear on the contract, the date, the name of the institution, the type of account, and the available balance. Most listing agents also want to see that the statement or letter is recent, usually within the last 30 to 60 days, and that the account number is redacted rather than removed entirely.

Is a bank statement the same as a proof of funds letter?

For most purposes, yes. A recent statement showing your name and the available balance does the same job as a letter on bank letterhead, and many agents prefer it because it shows the balance over time rather than on one day. A letter is useful when the account type is unusual or the balance is split across several accounts.

Is a mortgage pre-approval the same as proof of funds?

No. A pre-approval says a lender is willing to lend you up to an amount, subject to conditions. Proof of funds shows money you already have. A financed buyer usually needs both: the pre-approval for the loan and proof of funds for the down payment and closing costs.

Does crypto count as proof of funds?

It can, but not as a screenshot. An exchange balance or wallet screenshot does not prove the account is yours or that the funds are available, so most agents will not accept one. A verified crypto proof of funds letter documents your identity, cryptographic proof that you control the wallet, and the balance read from the blockchain, in a letter the other side can check is genuine.

Does a proof of funds letter lock up or reserve the money?

No. It is a statement of what was available on a date, not a hold on the account. That is why the other side cares that it is recent, and why a contract will separately require an earnest money deposit and a funded escrow before closing.

Can I use money from a retirement account or a gift?

Usually with conditions. Retirement accounts are generally not treated as liquid for a cash offer until the funds are actually withdrawn. Gift funds need a gift letter from the donor and proof of the donor’s funds, and a lender may have its own rules about when the money has to be in your account. Ask before you make the offer, not after.

Proof of funds letter for real estate: what it shows, a sample, and how to get one

A proof of funds letter is a dated statement from whoever holds your money that you have a specific amount available. A listing agent asks for it with a cash offer; a lender and the title company ask for it to confirm your down payment and closing costs are real. It is not a pre-approval, it is not a hold on the money, and a screenshot does not count.

Below: what the letter has to show, which documents are accepted in its place, a sample you can hand to your bank, the mistakes that get offers set aside, and what to do when the money is in crypto rather than a checking account.

A proof of funds letter, in one paragraph

Proof of funds (POF) is evidence that the cash needed to close exists and belongs to the buyer. It takes the form of a letter on the institution’s letterhead or, more often, a recent account statement. It answers one question for the seller: if we accept this offer, can this person actually pay?

Key Points

Your full name, matching the name on the offer
The institution and the type of account
The available balance, as of a stated date
A date recent enough to be believed: most agents want the last 30 to 60 days
Account numbers redacted to the last four digits, never blacked out entirely

Who asks for it, and what each one is checking

The listing agent, with a cash offer. A cash offer is only as strong as the cash behind it. Before the seller takes the home off the market, the agent wants to see that the full purchase price, or at least the amount not covered by financing, is sitting in an account in your name. Many listings say so in the remarks: “proof of funds required with all offers.”

The lender, on a financed purchase. The underwriter needs to source your down payment, closing costs, and reserves. Here the letter is only the start; they will also want the statements behind it and an explanation for any large recent deposit. The rules for that are in the seasoning and sourcing guide.

The title or escrow company, before closing. They do not underwrite you, but they do have to receive good funds by wire from an account they can tie to you. A proof of funds letter that names the account the wire will come from saves a round of questions in closing week.

Each of them is asking a narrower question than “how wealthy are you.” Show the account that will pay, show that it is yours, show that the balance covers the number. Nobody needs your whole financial life.

Which documents count as proof of funds

Acceptance is the agent’s or lender’s call, but these are the forms that are routinely accepted:

A recent bank statement. Checking, savings, or money market, showing your name and the available balance. The most common form and often the preferred one, because it shows the balance over a period rather than on one day.
A letter on bank letterhead. Signed by a banker, confirming the account and the available balance as of a date. Useful when the funds are spread across accounts or the statement cycle is a month away.
A brokerage or investment statement. Accepted when the holdings are liquid. Expect the other side to discount volatile positions, and expect a lender to want the sale settled before closing.
A home equity or credit line letter. A lender’s letter stating the available, undrawn amount on a line of credit. Treated as cash by some sellers, not by all.
A verified crypto proof of funds letter. A third-party document that confirms the holder’s identity, proves control of the wallet, and reads the balance from the blockchain. Covered in its own section below.

What generally does not count on its own: an exchange or wallet screenshot, a retirement account that has not been liquidated, a business account without proof you can draw on it, a friend’s or relative’s account without a gift letter, or any document old enough that the balance may have changed.

Sample proof of funds letter

Banks issue these on request, usually from a branch or through secure messaging, and most have their own template. If yours asks what to include, this is the whole of it:

[Bank or institution letterhead]

[Date]

To whom it may concern:

This letter confirms that [Buyer full legal name] holds [account type, e.g. checking / money market / brokerage] account number ending in [last four digits] with [Institution name]. As of [date], the available balance in this account is [$ amount].

These funds are liquid and available to the account holder. This letter is provided at the account holder’s request and does not constitute a guarantee of payment or a hold on the funds.

Sincerely,
[Name, title]
[Institution name, branch, phone]

Two notes on the wording. “Available balance” matters more than “balance,” because pending deposits and holds are exactly what a seller is worried about. And the last paragraph, which says the letter is not a guarantee, is standard; agents expect it and it does not weaken the offer.

How to get a proof of funds letter

From a bank or credit union. Download a statement from online banking, or ask a banker for a letter. A letter typically takes a day or two; a statement is immediate. Redact the account number to the last four digits before sending.
From a brokerage. Download the latest monthly statement or a balance summary. If the offer depends on selling positions, say so, and plan the settlement time into your closing date.
From a lender, for a credit line. Ask for a letter stating the undrawn amount available and the conditions on drawing it.
For crypto. A bank cannot write a letter about a wallet it does not hold, and an exchange screenshot proves neither ownership nor availability. RealOpen verifies your identity and your control of the wallet, reads the balance on-chain, and issues a letter the agent or lender can confirm is genuine at realopen.com/verify. How that works is on the crypto proof of funds page.

Mistakes that get offers set aside

A screenshot. No name, no date, no institution, easily edited. This is the single most common reason an agent asks for “real” proof of funds.
A stale document. A statement from four months ago says what you had then. Send the most recent one and be ready to refresh it if the deal drags.
The wrong name. Funds in a spouse’s, parent’s, or company’s name need a gift letter or proof of authority, and a lender will have rules about when that money has to move.
Money that is not liquid. Retirement accounts, unvested stock, real estate equity, and crypto that has not been verified all read as “maybe” to a seller choosing between offers.
Over-redacting. Blacking out your name or the institution defeats the purpose. Redact the account number, keep everything else.
Sending your entire financial life. One account that covers the number is stronger than ten that invite questions.

When the money is in crypto

A listing agent wants a proof of funds letter, not your underwriting file. That cuts both ways for a crypto buyer. On one hand, nothing about a cash offer requires explaining where the money came from, and a verified letter lets you offer as a cash buyer without exposing wallet addresses or balances beyond the amount needed. On the other, a wallet screenshot is the one document everyone in the transaction has learned to distrust.

The fix is the same standard a bank letter meets, applied to a wallet: who owns it, what is in it, and can a stranger confirm the document is real. RealOpen verifies identity, proves wallet control with a signed message or a small challenge transfer, reads balances from the blockchain, and issues a letter with an ID the other side checks at realopen.com/verify. At closing the crypto is converted and the seller is paid in dollars by wire; the seller never has to take crypto, and RealOpen is not a lender. The steps are on the get started page.

If the purchase is financed rather than cash, the down payment portion still has to become documented dollars before the lender will count it. That path is in the crypto down payment guide.

Get a verified crypto proof of funds letter