Question about EMD and proof of funds

[Michael Ventura]

Hello BP family, I have a question about EMD funds and proof of funds for purchase. I'm working on buying a duplex, the owner is willing to land contract (owner finance) with 20% down 5% interest and 15 year amortization with a 5 year balloon. That actually works for me as long he agrees on my offer price, he's very motivated.

My question is this; the broker is asking for proof of funds for the entire purchase and a $4,000 EMD (earnest money deposit) for escrow. This sounds like over kill on a deal that is not using the banks and will be spread out over a 15 year time frame.

Is this an unusual ask? Am I just to new to the game to know what this is a regular occurrence? My thoughts and experiences in the past buying SFH are much different and did not require so much upfront funding. I do realize not using a bank creates other issues and costs. Any suggestions?

Thanks, Michael V 

[Michael Ventura]

Thank you Tod and John, I appreciate your insights.  I'll discuss tomorrow with the seller and broker. I feel we are close, but the 1% is geneally what I offer. At times up to 4%...  Much love, Michael V