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. Mu ltiple 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’t 2 .
1 Builder, November 2023
2 National Association of Realtors, Redfin, March 2022
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
Get pre-approved for a loan with our affiliate, New American Funding.
Get NAF Cash Approved.
Submit Cash Offer Find the home you love, then make an all-cash offer with NAF Cash.
Cash Offer Accepted and Closed NAF Cash purchases the home. The Rent-Back Period starts.
You Move In Move into your new home!
For those with a home to sell, do it at your own pace.
Buy-Back
Complete the mortgage process with New American Funding.
Buy back your home from NAF Cash. 01 02 03 04 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.
What are the benefits of NAF Cash?
Simplify the homebuying process with certainty & convenience.
Smooth Closing
Eliminate contingencies for a straightforward process
Comprehensive Advantage
Sellers prefer cash for its ease and speed
Stress-Free Transition
Buy your new home before selling your current home
Flexibility
More time to get your home ready to stage; save time and stress
Discounts
Cash purchases may lead to seller discounts and builder concessions
Savings
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.
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.
Cash Offer + State Service Fee = Final Purchase Price
Example: Colorado Home
$300,000 + 1.95% = $305,850 cash offer CO service fee final purchase price
* 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.
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. It can be extended with an increase in the rent amount of 10% each month.
• Rent-Back payment methods include ACH (Electronic), Check, Credit Card, Wire.
$300,001$400,000
$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.
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%
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 • Net Sheet
Listing Requirements
Departing residence must be listed within 7 days of NAF Cash purchasing the new home.
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.
We require the tenant to obtain a renter’s insurance policy.
Utilities
All utilities will be in the end buyer’s name, including water and sewer.
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
