In a competitive sellers' market, homebuyers should take advantage of all the tools available to them. One of the greatest advantages, is being able to buy in cash. Buying in cash doesn't mean actual paper money. Rather, buying in cash refers to the ability of a buyer to pay for their new home in one lump sum instead of having to take out a mortgage and pay monthly payments. Buying in cash offers more security to sellers and generally simplifies the process of buying a home for sellers and buyers alike.
However, buying a multi-thousand dollar home using one lump sum isn't an option for a lot of people. This is why NAF Cash*, exists. To give you, the buyer, the advantage of an all cash offer, without the financial stress.
What is NAF Cash?
NAF Cash is a cash buyer program that was created to allow homebuyers to get the benefits of buying their dream home with cash, without the financial stress of saving up hundreds of thousands of dollars for their purchase.
How Does NAF Cash Work?
NAF Cash works in 5 simple steps:
- Apply to get Preapproved, a loan officer will underwrite your application, and you'll start shopping for your dream home
- NAF Cash submits your all cash offer to the seller
- Once your offer is accepted, NAF Cash purchases the home for you using one lump sum payment
- You move into your dream home
- You'll buy your home from NAF Cash using lender financing with New American Funding
What are the Advantages to Using NAF Cash?
Being able to buy a home with cash has many benefits. Some of the advantages of using NAF Cash to buy your home include:
- Preapproval - Getting preapproval for a mortgage has many benefits including proving creditworthiness, shortening the timeline of your homebuying, and giving the buyer a better idea of how much home they can afford.
- All cash offer – Sellers like all cash offers on their homes. They give them security, shorten the timeline and streamline the process for selling and closing on a home. This makes all cash offers highly competitive in a seller-friendly market like the one we are experiencing today.
- Buy before you sell – NAF Cash allows you to buy your new house without having to wait to sell your existing one. If you need to, you can even move into your new home and rent it from us while you complete the sale. This gives you more flexibility to buy and sell on your own terms and reduces the stress of managing things like storing your belongings or housing your family in between buying and selling.
- Working with NAF Cash plus New American Funding allows you to streamline your mortgage process – Once your all cash offer is accepted, you will work with a Loan Officer from New American Funding to secure the home loan that is the right fit for your unique needs. New American Funding has 20 years of experience in the mortgage industry and are experts at working with individuals to turn their dream of homeownership into a reality.
What Types of Mortgages Are Available?
The mortgage types that are eligible to be used in conjunction with NAF Cash include Conventional loans with a minimum of 620 credit score and as low as 3% down payment and VA Loans with a minimum of 620 credit score and as low as a 0% down payment.
Conventional loan* – Most home loans are Conventional loans. These loans follow specific guidelines from Fannie Mae and Freddie Mac and are one of the most common types of mortgages. Conventional loans tend to have fewer restrictions on them than other loan types, like loans that are backed by the government. Having fewer restrictions gives lenders more flexibility in the terms, features, and benefits that they can offer to borrowers.
VA loan* – VA loans are mortgages that are guaranteed by the United States Department of Veterans Affairs. Unlike Conventional loans, VA loans are backed by the government, this means that they have different applicable requirements than other home loans. The most notable is that borrowers must be service members or select military spouses to qualify for a VA loan. They also have unique benefits such as the possibility of no down payment, lower interest rates, and no monthly mortgage insurance premiums.
NAF Cash Requirements:
- 3% of the selling price as Earnest Money**
- In order to qualify for NAF Cash, you must first pre-qualify for either a Conventional or a VA loan
Conventional Loan Requirements:
- Proof of income – this can be in the form of pay stubs, banks statements, W-2s etc. for a minimum of 2 years
- Employment verification – stable and consistent work history that demonstrates your ability to pay back your loan
- Personal identifying information – this can include ID, Social Security number, passport etc.
- A DTI of no more than 43% - there are conditions where a lender may accept a higher DTI
- Minimum credit score of 620
- The financial ability to put down 3%-20% down payment on a house
VA Loan Requirements:
- Certificate of Eligibility (COE) – A COE is a document used by a service member that proves that they have met the military qualifications to receive VA benefits including access to a VA-backed home loan.
- U.S. Citizens may also qualify if they have served in these organizations:
- Air Force
- Coast Guard Academy
- Public health service officers
- Military cadets (U.S.)
- WWII armed forces of a U.S. ally
- Merchant seaman who served in WWII
- Midshipmen of the U.S. Naval Academy
- National Oceanic and Atmospheric Administration officers
- Military spouses under certain conditions
- Ability to pay a Funding Fee – the amount of this varies based on the military category and the down payment amount
- Loan must be used for the primary residence – investment properties, vacation homes, etc. are not eligible
If NAF Cash sounds right for you, we'd love to help you get started. Simply apply to become pre-qualified, we will underwrite you, and you'll be on your way to becoming a homeowner and taking advantage of all the benefits that being a cash buyer offers!Apply
*Loan products offered by New American Funding, LLC. dba New American Funding. NMLS #6606. www.nmlsconsumeraccess.org. Terms and Conditions apply. Loan products subject to credit and property approval. Not all applicants will qualify. © 2023 New American Funding, LLC. New American and New American Funding are registered trademarks of New American Funding, LLC. All Rights Reserved. Corp Office 14511 Myford Rd, Ste 100, Tustin, CA 92780. Ph 800-450-2010.
**3% earnest money may be forfeited to NAF Cash, LLC if borrower does not purchase the home after NAF Cash has purchased the home on borrower's behalf in cash