Frequently Asked Questions

What is Keybacker?
Keybacker is a transformative platform that connects individuals struggling to secure home loans or access home equity with empathetic investors ready to offer support as co-signers. By fostering this unique partnership, we aim to make homeownership and equity access achievable for many who face barriers in traditional financial avenues.

Why support borrowers who don't qualify traditionally, and isn't it risky?
Some individuals don't qualify for traditional loans due to factors like fluctuating income or short credit history, not necessarily their ability to pay. Keybacker's thorough vetting aims to uncover genuine repayment capacity. We minimize investor risk through tailored interest rates, rigorous financial assessments, and constant support from financial advisors. While there's inherent risk in cosigning, these steps are designed to safeguard investments.

How does Keybacker work for borrowers?
If you're dreaming of buying a home or accessing your home's equity but find yourself without a qualified co-signer, Keybacker might be your solution. You share your story, financial goals, and the challenges you face. Our platform then matches you with investors who understand your situation and are willing to help by co-signing your loan.

How does the investment process work for investors?
As an investor with Keybacker, you have the unique opportunity to review the stories of potential borrowers. This personal insight allows you to choose whom you invest in, setting your own interest rates and terms. It's a way to make a meaningful impact while also earning returns on your investment.

What are the terms of the agreement between borrowers and investors?
Our model facilitates one-year agreements where the goal is for borrowers to refinance the loan, releasing the investor from their co-signer obligations. There’s also an option to renew the agreement if both parties agree, offering flexibility and continued support.

How do we ensure that borrowers who traditionally wouldn't qualify can make payments?
Our commitment to due diligence involves not just a vetting process but an ongoing relationship with borrowers through financial advisory support. This ensures that borrowers are not only able to meet their initial loan requirements but are also set up for long-term financial stability, increasing the likelihood of successful repayment.

How do you support borrowers in meeting their refinancing goals?
Keybacker employs financial advisors who work closely with borrowers to ensure they remain on track to meet their refinancing objectives. This proactive approach helps mitigate risks and supports the long-term success of both borrowers and investors.

What assurances do investors have regarding borrower repayment?
Investors are safeguarded through multiple layers, including the initial comprehensive borrower vetting and continuous monitoring and support by financial advisors. This ensures borrowers stay on track. Additionally, investors set the terms of their investment, including interest rates, giving them control over their risk and return.

Can anyone become an investor with Keybacker?
Yes, if you're looking to make a positive impact while seeking a return on your investment, Keybacker welcomes you. Our platform caters to both seasoned investors and those new to real estate investing who share a common goal of helping others achieve their homeownership dreams.

What makes Keybacker different from other lending platforms?
Keybacker stands out through its story-driven approach, connecting borrowers and investors on a more personal level. Our mission-driven model focuses not just on financial transactions but on creating meaningful, empathetic partnerships. This community-centric approach is designed to foster trust and long-term relationships.

How are interest rates determined?
Interest rates are set by the investors themselves, allowing flexibility and control over the risk and potential return of their investment. This dynamic ensures that both the investor's and borrower's needs can be met in a fair and balanced manner.

What makes Keybacker different from crowdfunding?
Most banks require loans to close in an individual's name, not an LLC's, which is a common structure for crowdfunding. Keybacker’s model avoids this issue by facilitating direct connections between individual investors and borrowers, sidestepping the limitations that traditional crowdfunding faces in the real estate market.

What happens if a borrower defaults?
While defaults are rare due to our thorough vetting process, we have strategies in place to handle such situations, including reserve funds and strategic partnerships for financial counseling to support borrowers. Additionally, legal avenues are pursued as a last resort to protect investor interests.

How does Keybacker generate revenue?
Keybacker earns through origination fees charged for each successful loan facilitation and a subscription model for premium services, including personalized financial advice and enhanced investor-borrower matching features.