CAIVRS, or the Credit Alert Verification Reporting System*, is a database created by the U.S. Department of Housing and Urban Development to track defaults, delinquencies, federal liens, and foreclosures related to other federal loan programs.
Information is sent to CAIVRS by several federal agencies, including:
the Department of Education (DOE)
the Small Business Administration (SBA)
the Department of Veterans Affairs (V.A.)
the Department of Agriculture (USDA)
the Department of Justice (DOJ)
If your name is in CAIVRS for a federal debt like defaulted student loans, you’ll need to pay it off or get back in good standing before a lender can approve you for an FHA, USDA, or VA loan. Until then, borrowing a federally-backed mortgage is off the table.
A bank can approve you for a conventional home loan even if your name pops up in a CAIVRS report. They’ll first need to determine if you are a credit risk, which means you’ll need a good credit score (680+), down payment, and a letter that shows how you’re addressing the defaulted student loan (loan rehabilitation, settlement, repayment plan, and so on).
Ahead, learn when lenders pull your CAIVRS report and how to clear it if you’re in the database for defaulted federal loans.
Closing soon and just learned your name is in CAIVRS for old student loans? I share everything I know about the process in this premium guide. Or, if you’d like to hire me to get you off of CAIVRS ASAP, schedule a call with me so I can review your loans, figure out your options, and give you a realistic timeline to clear CAIVRS.
* Before the database moved online, CAIVRS was known as the Credit Alert Interactive Voice Response System.