The question comes up in every conversation with a Brazilian buyer: "if my money is in Brazil, can I still buy?". You can — and it is routine in Orange County and in Los Angeles, where homes are bought with money from all over the world. There is simply a document to present and a path to walk, and it is better to know both before making the offer, not after.

The document is called proof of funds (proof of funds). It travels with the offer and answers one objective question from the seller: does the money for this purchase exist, and is it available?

What counts as proof of funds

In practice, two formats handle almost everything:

• A recent bank statement showing sufficient balance, with the account holder's name and the institution's name visible.
• A bank letter on letterhead, signed, stating that the client holds available funds in a given amount.

The amount required changes with the type of purchase. In an all-cash purchase, the proof has to cover the entire price. If there is financing, it covers the down payment plus closing costs, and it comes alongside the pre-approval letter. Investment statements are usually accepted too, as long as the money can genuinely be liquidated within the timeline of the deal.

Money outside the United States: accepted, with extra work

A Brazilian or European bank statement is acceptable, and it is not an exception. What changes is the need to translate the context for the other side: an account in reais or euros requires conversion at the day's rate, and the seller's agent needs confidence that the money will arrive in time for closing.

That work belongs to your agent, and it is decisive. An offer with foreign proof of funds presented without explanation reads as risk; the same offer accompanied by a transfer timeline and the bank's contact reads as an ordinary offer. That is why, with money abroad, choosing the right agent matters even more.

The path of the money matters as much as the balance

Here is what most often delays a Brazilian buyer, and it is not about the seller — it is about banking and regulation:

• Lead time. If there is financing, the lender will want to see the down payment sitting in a US account for a while, typically two to three months (what is called seasoning). A large deposit that just landed requires documentation of its origin.
• A complete paper trail. Keep the foreign exchange contract, the international wire receipt and the document explaining where the money came from (sale of a property in Brazil, profit distribution, inheritance, savings). "It was always mine" is not an acceptable answer for a credit analyst.
• Anti-money-laundering rules. US banks operate under know-your-customer and reporting obligations; international funds get closer scrutiny. That is normal and it is not an accusation — it simply requires paperwork.
• All-cash purchases through a company or trust. There is a specific federal reporting rule for non-financed residential transfers made to legal entities and trusts. If the purchase is structured that way, confirm the current version and its information requirements with a professional.
• The Brazilian side. The remittance has to follow the applicable foreign exchange rules, and assets held abroad have consequences for the Brazilian income tax return. Consult an accountant in both countries before moving large amounts.

One item almost nobody plans for: the tax when you sell

It is not a purchase problem, but it belongs to the same subject and it prevents a shock later on. When a non-resident for tax purposes sells property in the United States, the federal law known as FIRPTA requires the buyer to withhold a portion of the gross sale price and remit it to the US tax authority as an advance on the tax owed. The standard rate is 15% of the sale amount, with paths to reduction or exemption through a specific procedure.

Whoever enters the market knowing this plans the exit. Whoever finds out on closing day loses liquidity for months.

What to do before making an offer

Three steps solve 90% of the delays: open the US account early and bring the down payment over before you start looking at houses; assemble the source-of-funds file while there is no rush; and ask your bank for the balance letter already in English, or with a translation, so you can attach it to the offer the same day you decide to make one.

This text is informational and does not replace legal, accounting or banking advice. Foreign exchange, tax and compliance rules change in both countries; confirm the current version before transferring funds.

Sources and verification

• California Association of REALTORS® — residential purchase form: requirement of proof of funds and of documentation attached to the offer.
• Requirements for seasoning and source-of-funds documentation in mortgage origination (Fannie Mae / Freddie Mac standards).
• Bank Secrecy Act and know your customer rules applicable to US financial institutions in international transactions.
• FinCEN — reporting rule for non-financed residential transfers to legal entities and trusts (confirm the effective date and the text in force).
• IRS — Foreign Investment in Real Property Tax Act (FIRPTA): 15% withholding on the gross price when a non-resident sells US property, with exceptions provided by law.
• Banco Central do Brasil — rules applicable to international remittances and to the registration of Brazilian capital held abroad.

Watch this part of the episode:

Proof of funds and money coming from Brazil — starting at 16:47 · CADÊ BRAZIL