Definition of Proof of Funds:

Proof of Funds in Orange County:

This is a document that is sent by a lender that demonstrates that a person has the ability and funds available to use as a down payment for a real estate transaction. It usually comes in the form of a bank statement which is then followed up by a formal verification of deposit form (VOD) by the lender to insure that the funds required for the transaction are obtainable and legitimate.

In a Orange County real estate transaction the borrower will always need to have more money in the bank, up-and-beyond their down payment, to close the loan with their lender. If they are not putting at least a 30% down payment (70% LTV or less) they will be required to have 6 months PITI in reserves left in the bank after their down payment (they must have 6 months of their new payment amount, including taxes and insurance left in their bank accounts, verified by their lender). If their down is greater than 30% then they are only required to have 2 months of PITI in reserve.

 

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