BUILDING HOMEOWNERSHIP NAF CASH
WHAT IS NAF CASH?
• NAF Cash, LLC. is an affiliate of New American Funding that helps buyers purchase a home with cash
• It’s the all - cash buying program available in all States
• We help your buyer secure their dream home and stand out with a cash offer
BUILDER BENEFITS
• Cash flow
• Timely closings (10-14 days)
• A solution for your standing inventory
• We’ll work with your contract
• Help you meet quarterly goals
• Make contingent buyers non - contingent
• Builder concessions roll over to the buyer's mortgage
BUYER BENEFITS
•Buyers can move into their new home before selling their old home
•Avoid the hassle of moving twice or paying for storage
•Enjoy a stress-free move without rushing
•Avoid the extra cost of a short-term rental
•Buyers have more time to stage, repair, and get top dollar for their current home
HOW NAF CASH WORKS
NAF CASH PURCHASE TIMELINE
NAF CASH SELLS TO BUYER TIMELINE
SERVICE FEE
• NAF Cash charges a transaction fee of 1.50%-5.95% of final purchase price (varies by state)
• Can be offset by Seller concessions so, the buyer doesn’t have to pay out-of-pocket
• Fee is included as part of the Buyer’s is pre-approval so, there’s not surprise costs later
COST BY STATE
Calculating the Final Purchase Price
NAF Cash transactions involve a service fee ranging from 1.5% to 5.5%, varying by state (and in some cases, by county). This fee is rolled into the mortgage. The buyer does not have to pay this out of pocket.
Cash + State Service Fee = Final Purchase Price
Example: California home
$1,000,000 + 1.6% = $1,016,000
Example: Colorado home $500,000 + 1.5% =
$507,500
LEASE AGREEMENT & RENT BACK
Lease agreement must be signed prior to the future homeowner moving in.
Rent back calculation is based on the new home purchase price (see chart at right).
• Rent starts on day 1 from NAF Cash purchase closing. It is charged per diem and is not due in the first 60 days.
• After 60 days, rent payments are due. If needed, the lease can be extended on a month-to-month basis with a 10% increase applied each month, payable monthly.
• Rent back payment methods include ACH (Electronic), Check, Credit Card, Wire, and gift funds.
FAQS
• Who do I call when I have a buyer interested in NAF Cash?
Contact your New American Funding Loan Officer.
• How is the NAF Cash fee paid?
Typically added to the purchase price in the final mortgage. Alternatively, it can be covered through seller concessions.
• How long does it take to close a NAF Cash transaction?
It usually takes up to 14 days, but it can close in as little as 6 days.
• Who is going to send me the contract instructions?
Once the client is pre-approved by UW and NAF Cash approved, a NAF Cash transaction coordinator is assigned. The TC will make an introduction call and will be NAF Cash main point of contact.
• How long does the buyer have to sell their current home?
Rent remains the same for the first 60 days. After day 61, rent increases by 10% each month until the home is sold.
• Does the home buying process change?
No, the process stays the same. Buyers still choose options, do their orientation, final walk-through, and warranties remain in place.
• When a contract is reassigned, how does the EMD work?
NAF Cash coordinates remaining EMD to be deposited to title company. (Conventional loans 5% total between Builder and NAF Cash; 1.5% total on VA loans).
• When does the rent back start?
It starts on day 1 after cash purchase closes and is charged on a per diem basis.
• Who do I write the cash contract to? You would write the contract to NAF Cash, LLC.
• Are seller concessions allowed?
Yes, it must be written as seller credit in the cash contract between the builder and NAF Cash, LLC.
• Is the same process with a Real Estate Agent?
Yes, buyers REA will represent NAF Cash to buy the property from the Builder
