NAF Cash Presentation - Agents

Introducing

Our Story:

NAF Cash was formed in 2021 with a mission to help provide borrowers a competitive edge in a cash buyer market.

NAF Cash is an affiliate of New American Funding, available in 50 states and helps accelerate the closing process.

Buyers are using Cash to compete About one-third (~30%) of home sales go to cash buyers1.

A study by Redfin found that buyers who offered an all-cash transaction were four times more likely to win a competitive offer situation than those who didn’t2.

Builder, November 2023 2 National Association of Realtors, Redfin, March 2022 1

Learn about cash buying trends in your area

Our new map shows the prevalence of all-cash purchases across the U.S., by state and county.

Explore the map at nafcash.com

How does NAF Cash work?

Pre-Approved & Fully Underwritten Your client submits all financial documents to our affiliate, New American Funding.

You get NAF Cash Certified and your clients get NAF Cash Approved.

01

Submit Cash Offer Your client finds a home they love, then makes an all-cash offer with NAF Cash.

02

Cash Offer Accepted and Closed NAF Cash purchases the home.

Your Client Moves In Your client moves into their new home.

Buy-Back Your client completes the mortgage process with New American Funding.

The Rent-Back Period for your client starts.

If they have a home to sell, they can do so at their own pace.

They buy back the home from NAF Cash.

03

04

05

Benefits for Real Estate Agents • Make a competitive offer with no contingencies • Get the offer accepted and potentially save buyers money • Close more homes more quickly with cash • Secure an advantage over financed buyers • Gain a competitive edge in the market • Convenient and hassle free

Benefits for Buyers First Time Homebuyers • Secure your dream home • Get all the benefits of a cash buyer (Savings, concessions) • Close faster

Repeat Buyers

(clients with a home to sell) • Convenience to buy first and sell after at full market value • Take control of your move (get NAF Cash approved, win the home you want, move in, sell your old home) • Save time and money with an easy cash buying process

Loan Programs & Buyer Qualifications NAF Cash Parameters

Conventional Loans (Fannie/Freddie)

620

Minimum Credit Score

AS LOW AS

3%

†

Lowest Down Payment

$150,000 Minimum Purchase Price

$2,000,000

5‑10%

Maximum Purchase Price

Minimum EMD Required*

$2,000,000

1.5‑3%

VA Loans

620

Minimum Credit Score

AS LOW AS

0%

Lowest Down Payment

EMD Restrictions

$150,000 Minimum Purchase Price

Maximum Purchase Price

Minimum EMD Required

* For Conventional Loans: 5% EMD required for homes $150,000 - $1,000,000; and 10% EMD required for homes $1,000,001 - $2,000,000. This EMD must be liquid to be eligible for NAF Cash. † 3% Down Payment if at least one borrower is a first-time homebuyer.

Allowed Property Types for NAF Cash Allowed Property Types:

Primary Residences Only

Single Family Residences Only

Reviewed on a Case-by-Case Basis:

New Construction Homes

Condominiums

Must be approved during 10-day due dilligence.

Ineligible properties: Multi-Family / Multi-Purpose, Investment Properties, Secondary Homes, Manufactured Homes, Foreclosed / Auctioned Homes and Rural Properties

What does NAF Cash Cost?

NAF Cash transactions involve a service fee of 1.5% — 5.95%, varying by state.* The service fee is rolled into the mortgage. The buyer doesn't have to pay this out-of-pocket.

WA

2.80%

The map on this slide indicates the service fees for each state when this deck was published. For the most up-to-date list of state service fees, talk to a NAF Cash Program Specialist.

VT

3.10% MT

OR

1.95%

MN

2.30% ID

CO service fee

2.25%

2.05%

WY

2.85%

OH

IL

UT

2.10%

2.35%

IN

1.95%

KS

1.95%

2.05%

(Fee varies by county)

2.15%

TN

2.35%

OK

final purchase price

AZ

1.95%

2.20%

NM

1.95%

SC

AR

2.35%

2.25% MS

1.95% TX

1.95%

* In NY, service fee is based on the County (up to 5.5%) and the state requires a minimum of 31 days of rent-back.

AL

2.20%

GA

2.05%

LA

1.5%

FL

2.20%

AK

1.95%

HI

2.35%

Legend <2.0%

2.0-2.5%

(Fee varies by county)

DC

3.45% NC

$305,850

DE

VA

2.20%

KY

1.95%

2.70%

2.70%

(Fee varies by county)

2.05%

MO

NJ

MD WV

CO

1.95%

CT

3.95%

1.95%

2.5-3.0%

2.45%

2.45%

PA

IA

NE

2.05%

RI

(Fee varies by county)

MI

2.20% 1.95%

MA

NY

1.95%

CA

cash offer

WI

SD

1.95%

2.35%

+ 1.95% =

2.45%

1.95%

NV

$300,000

ME

ND

1.95%

Cash Offer + State Service Fee = Final Purchase Price

Example: Colorado Home

NH

3.45%

>3.0%

How does the Rent-Back Work?

It begins when NAF Cash purchases the home.

• After the cash offer transaction closes (see step 3), a lease agreement is created.​ • This agreement includes rent payments for the period until you take ownership of your new home; aka the ‘Rent-Back’.​ • The Rent-Back is calculated as a per-diem (per day) fee based on the purchase price of the cash offer transaction (see chart at right).​ • Rent is not collected monthly. A final invoice (out of escrow) will be provided at the closing of the mortgage.​ • The Rent-Back period is typically up to 60 days, at which time the rent is due. It can be extended with a month-to-month lease with an increase in the rent amount of 10% each month.

• Rent-Back payment methods include ACH (Electronic), Check, Credit Card, Wire.​

For Purchase Prices...

Above

And Not Over

Rent/Month

$0

$300,000

$1,800

$300,001

$400,000

$2,300

$400,001

$500,000

$2,800

$500,001

$600,000

$3,500

$600,001

$700,000

$4,000

$700,001

$800,000

$4,500

$800,001

$900,000

$5,100

$900,001

$1,000,000

$5,700

$1,000,000+

Provided on request.

The rental fees were accurate at the time this deck was published. For the most up-to-date list of rent prices, talk to a NAF Cash Program Specialist.​

NAF Cash was amazing and a joy to work with, delivering on every aspect of our agreement with exceptional communication. The entire transaction process was incredibly positive, and we eagerly look forward to working with them again.

— Kat and Cecilia, Listing Agents

NAF Cash Certification Join the over 16,000 agents who have been NAF Cash Certified so far!

Working with NAF Cash requires Real Estate Agents to complete a free, one-hour virtual training. Training is held Monday through Friday by a NAF Cash Program Specialist.

Click here to sign up or scan the QR code.

thank you.

Kevin Shea Sr. Loan Consultant | NMLS# 183935

314-471-6254

Kevin.Shea@nafinc.com NAF.com/KevinShea

Equal Housing Opportunity. This is not a loan commitment or guarantee of any kind. Terms and conditions apply. Subject to borrower and property qualifications. Not all applicants will qualify.

Rates and terms are subject to change without notice. All mortgage loan products are subject to credit and property approval. © New American Funding, LLC. NMLS #6606. nmlsconsumeraccess. org. Corporate office 14511 Myford Rd., Ste 100, Tustin, CA 92780. Phone: (800) 450-2010. NAF Cash is fulfilled by NAF Cash, LLC, an affiliated real estate company of New American Funding that is managed and operated in compliance with applicable legal and regulatory requirements. NAF Cash, LLC. MI Real Estate Broker #6502431375. NAF Cash, LLC does not originate loans or issue loan commitments. NAF Cash, LLC charges a Transaction Fee of 1.95%-5.5% of purchase price for its service (fee varies by state). Terms and conditions apply, not available in all states. 41050 W 11 Mile Rd, Ste 220, Novi, MI, 48375. Phone 844-344-0531. Borrower will rent the home at the market rate until their new loan with New American Funding closes.​04/2024.