Become a cash homebuyer
Buying a home before you've sold your current one shouldn't feel impossible. NAF Cash*, an affiliated company of New American Funding, makes it possible. It's a cash-offer homebuying program that puts traditional homebuyers in control with a cash offer that removes the financing and home-sale contingencies that can slow a deal down.
The result: your offer stands out, may get accepted faster, and lets you move forward with confidence.
NAF Cash buys the home you want upfront with cash, then sells it back to you at the original price plus a service fee that can be rolled into your financing once you secure a mortgage. This can help you compete, win, move in sooner, and potentially save money along the way.
What is a cash offer on a home?
A cash offer on a home allows you to offer to purchase a property entirely with cash, without relying on a mortgage to fund the purchase. In a traditional home sale, the buyer secures financing through a lender, which introduces approval contingencies. These requirements may slow the process down or may even cause the deal to fall through.
A cash offer gets rid of those contingencies. The seller knows the funds are there, the closing can happen faster, and the deal won’t fall apart because the buyers can’t get a loan.
Sellers are often willing to accept a cash offer even if it comes in lower than a financed offer, because the reliability and speed are worth the trade-off.
How NAF Cash works
NAF Cash turns you into a cash homebuyer in several steps including:
Get Pre-approved
Get pre-approved for a mortgage through New American Funding to finance your new home
Make a cash offer
Once you’ve found your new home, NAF Cash helps you make an all-cash offer on the home you want.
NAF Cash buys the home
NAF Cash will buy the home with cash. The seller gets their money immediately. You can rent the property from NAF Cash until your financing is secured.
Sell your existing home at your own pace
If you are listing your home, NAF Cash lets you live in your new home while you wait for your old one to sell.
Finish the mortgage process
You and your loan officer will find the home loan that is best for your financial goals. You will settle on terms and conditions and begin to make monthly mortgage payments.
Buy the home from NAF Cash
You will use your new mortgage to buy your home back from NAF Cash.
Key benefits of NAF cash
- Save money: Cash buyers pay approximately 11% less** than those using a mortgage, according to a 2022 study by the University of California San Diego, Rady School of Management.
- Close on your home faster.
- No rush to sell your existing home: You have time to sell your existing home.
- Be competitive: Being able to offer cash for a home makes you stand out in a competitive market.
**According to a study from researchers at the University of California - San Diego, cash buyers have paid about 11% less than using a mortgage. Reher, Michael and Valkanov, Rossen, The Mortgage-Cash Premium Puzzle (September 24, 2021). Available at SSRN: ssrn.com/abstract=3751917 or dx.doi.org/10.2139/ssrn.3751917.
FAQs
Sellers prefer cash offers because they are perceived to be more certain to close. A financed offer carries the risk that the buyer's loan could be denied or delayed, which can cause the deal to fall through at the last minute. Cash offers eliminate that risk. So, sellers are often willing to accept a cash offer even if it comes in lower than a competing financed offer.
A contingency is a condition that must be met for a sale to go through. In a traditional financed offer, these may include a financing contingency (the buyer's loan must be approved) and an appraisal contingency (the home must appraise for at least the purchase price).
A cash offer has fewer contingencies. This may make the offer more appealing to sellers.
A cash buyer is not required to have a home inspection, but it is strongly recommended. An inspection helps identify potential issues with the property before the purchase is finalized. It is beneficial for buyers to understand the condition of the home they are purchasing.
Homebuyers using NAF Cash are required to undergo an inspection.
Yes, qualified buyers may use a cash offer program like NAF Cash.
NAF Cash purchases the home upfront on your behalf, so the seller sees a cash offer with no contingencies. You then secure a mortgage with New American Funding to buy the home back from NAF Cash. This gives you the competitive advantage of a cash offer without needing the cash yourself.
No. NAF Cash is designed for traditional homebuyers who need financing. The company will purchase your new home with cash. Then you will need to secure a mortgage with New American Funding to buy the home back from NAF Cash.
NAF Cash charges a service fee that can be rolled into your mortgage. The exact fee depends on your transaction details and where you’re located and can be confirmed at the time of application.
Yes. NAF Cash allows you to move into your new home before selling your existing home. You will not have to take the first offer that comes along for your existing home. This gives both buyers and sellers more flexibility.
You have up to 60 days to sell your existing home, although that initial period may be extended. During that time, you rent your new home from NAF Cash at the market rate until your previous home is sold and your permanent financing is in place.
The seller sees a cash offer with no financing or contingency tied to selling an existing home, which is what makes the offer attractive. The certainty of a cash offer is what gives you the competitive advantage.
Since NAF Cash purchases the home with cash, you may be able to close in as fast as 10 to 14 days. This means sellers receive the funds without waiting the typical 30 to 60 days that a traditional mortgage requires.
The timeline for completing your mortgage with New American Funding depends on a variety of factors.
NAF Cash is available in all states. It is not available in Puerto Rico. Contact New American Funding to confirm availability in your area and learn about eligibility requirements.
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