NAF Cash Presentation - Consumers

Introducing NAF Cash

Homebuying activity is strong & predicted to grow Buyer demand is increasing and sellers are returning to market.

“The median home price reached an all-time high for the month of January 2024. ​Multiple offers are common on midpriced homes, and many homes were sold within a month."

— NAR Chief Economist Lawrence Yun, U.S. News, February 2024

"If you want to have a winning offer in 2024, the best advice I can give is to pay cash or qualify for a conventional mortgage. Sellers will want to close fast."

— Maureen McDermut, Realtor at Sotheby’s International-Montecito CBS News Money Watch Feb. 2024​

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

How does NAF Cash work?

It all starts with getting pre-approved and working with a NAF Cash Certified Real Estate Agent.

Get Pre-Approved

Submit Cash Offer

Get pre-approved for a loan with our affiliate, New American Funding.

Find the home you love, then make an all-cash offer with NAF Cash.

NAF Cash purchases the home.

The Rent-Back Period starts.

Get NAF Cash Approved.

01

Cash Offer Accepted and Closed

02

03

You Move In

Buy-Back

Move into your new home!

Complete the mortgage process with New American Funding.

For those with a home to sell, do it at your own pace.

04

Buy back your home from NAF Cash.

05

What types of homes can I purchase?

NAF Cash can assist with these types of homes.

The home must be your primary residence.

Single-Family, Primary Residences Investment properties, multi-family, and second homes are not eligible for NAF Cash.

Condominums Considered on a case-by-case basis.

Must be approved during 10 business day due dilligence period.

New Construction Homes Considered on a case-by-case basis.

How do I qualify for NAF Cash?

Loan Qualifications

Conventional Loans

620

Minimum Credit Score

3%

AS LOW AS

†

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

What is the EMD?

$150,000 Minimum Purchase Price

Maximum Purchase Price

Minimum EMD Required

EMD stands for "Earnest Money Deposit". This goes toward the purchase of the property.​* 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.

What are the benefits of NAF Cash?

Simplify the homebuying process with certainty & convenience.

Smooth Closing

Comprehensive Advantage

Stress-Free Transition

Eliminate contingencies for a straightforward process​

Sellers prefer cash for its ease and speed​

Buy your new home before selling your current home

Flexibility

Discounts

Savings

More time to get your home ready to stage; save time and stress​

Cash purchases may lead to seller discounts and builder concessions

You can use potential savings to buy down (lower) your interest rate​

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. You don’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.

For Purchase Prices...

Above

And Not Over

Rent/Month

$0

$300,000

$1,800

• This agreement includes rent payments for the period until you take ownership of your new home; aka the ‘Rent-Back’.​

$300,001

$400,000

$2,300

$400,001

$500,000

$2,800

• 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).​

$500,001

$600,000

$3,500

$600,001

$700,000

$4,000

• Rent is not collected monthly. A final invoice (out of escrow) will be provided at the closing of the mortgage.​

$700,001

$800,000

$4,500

$800,001

$900,000

$5,100

• The Rent-Back period is typically up to 60 days.

It can be extended with an increase in the rent amount of 10% each month.

$900,001

$1,000,000

$5,700

$1,000,000+

• After the cash offer transaction closes (see step 3), a lease agreement is created.​

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

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 Program Requirements

Earnest Money Deposit EMD is based on the cash purchase price of the home and goes towards the down payment and/or closing cost of the home.

Minimum Required EMDs Minimum

And Not Over

Minimum EMD Required

$150,000

$1,000,000

5%

$1,000,001

$2,000,000

10%

All VA Loans

1.5‑3%*

*1.5% for homes under $1.0 Million; 3% for homes over $1.0 Million

Consideration Liquid funds must be verified to cover the required minimum Earnest Money Deposit prior to signing a cash offer.

Gifting Gifts are acceptable to cover the required minimum EMD. Gifts must be deposited into the client’s account prior to the cash offer.

NAF Cash Program Requirements

Departing Residence These requirements apply to those with a home to sell.

Equity Evaluation

Takes place during pre-qualification (see step 1) and 30% equity is required.

Required Documents for Evaluation • Comparative Market Analysis

Listing Requirements

• Net Sheet

Departing residence must be listed within 7 days of NAF Cash purchasing the new home.

NAF Cash Program Requirements

Home Inspections

Home Inspections are Required Ordered during the Due Dilligence period and paid for by the borrower.

Home Inspection Waivers If a home inspection was completed with the past 90 days, a waiver is acceptable but with no replacements. Buyer assumes full responsibiltiy.

NAF Cash Program Requirements

Taxes, Insurance, and Utilities $

Taxes

All taxes (if applicable) will be noted in the final invoice. No credit will be given for the time the home was owned by NAF Cash LLC.

Insurance Policies NAF Cash LLC will carry an insurance policy.

Utilities

All utilities will be in the end buyer’s name, including water and sewer.

We require the tenant to obtain a renter’s insurance policy.

Important: HOA Fees are the end-buyer’s responsibility.

NAF Cash handled everything. It was because of NAF Cash that I got my forever home. The easiest transaction ever. They were professional and knowledgeable. They answered all my questions before I could even ask them!

— Homebuyer

thank you.

AgentFullName Title

[[CellPhoneNumber]] [[SecondPhoneNumber]] AgentEmail AgentWebsite

#BeACashBuyer Please Select a state or blank.

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.