What is the CAF, and how does it work?
Q: What is the Cosigner Alternative Fee?
A: The Cosigner Alternative Fee (CAF) is a financial product for applicants that can help them to become eligible for Guaranteed Rent.
If an applicant qualifies for this product, they can choose to forego adding a traditional cosigner to their application and instead submit a non-refundable fee before their lease start date.
We realize that not everyone is in a situation where they can provide a traditional cosigner. This product provides more applicants with the opportunity to become Guaranteed Rent Eligible
Q: Why is the fee retained by Nomad?
A: Nomad retains this non-refundable fee to offset the risk of non-payment. At scale, this fee allows us to continue to guarantee the rent for statistically less qualified individuals.
Q: Who is eligible?
A: All B-tier applicants (600-649 credit) can select this product. The fee for this credit tier is $350.
For properties priced at or below $2000/month, C-tier applicants (550-599 credit) are also able to select this product. The fee for this credit tier is $750.
Q: Can I choose to not offer this?
A: If an applicant has opted into this product, that means that they were either unwilling, unable, or do not prefer to add a traditional cosigner to the lease. You as the owner can choose to require a traditional cosigner instead of the CAF, but you run the risk of losing an eligible applicant.