Comments on: Government Loans Are Great–But You’ve Gotta Pass a CAIVRS Check

By: Effie

Effie — Sat, 31 Jul 2010 00:40:33 +0000

Hello we are in a similar predicament as Jason above on 5/31/10. Our mortgage application for a USDA loan was cleared by the mortgage broker, however two weeks before we are supposed to close they pull a Caivrs and my fiances foreclosure from 9/06/2007 is on it. We have court papers stating that the bank foreclosed in 2007, though HUD repayed the balance due to Wells Fargo after the sale in 2009. According to HUD it states “A borrower is not eligible for an FHA mortgage if he is presently delinquent on any type of Federal debt, unless the delinquent debt is paid in full or otherwise brought current under a repayment plan approved by the Federal agency that is the holder of the debt.

If the borrower is under an approved repayment plan with the debt holder, the borrower will have to obtain a written copy of it from the debt holder. (Federal IRS tax liens may remain unpaid provided the IRS subordinates the tax lien to the FHA mortgage.)

For a borrower that had an FHA mortgage foreclosed, that borrower is not eligible to apply for another FHA mortgage until three years after the date that HUD paid the insurance claim to the lender. The names of FHA borrowers are automatically deleted from CAIVRS when this three year waiting period expires.”

CONFUSING, so if he is on a payment plan, will USDA reconsider his application for repayment. We also called HUD and they say we need to contact the lender, well if the original lender was repaid by HUD in 2009, wouldn’t HUD be the one we need to talk to about repaying them? Where can we get some answers quick because we will be homeless in 17 days, thank you.

By: Gina Pogol

Gina Pogol — Mon, 26 Jul 2010 22:23:47 +0000

Ben, if you have no lien and are on a payment plan you’ll have to include that debt in your application but are most likely not on CAIVRS. Peter, your FHA foreclosure will get you on CAIVRS. Here’s what HUD has to say about it:

Question 6: How long does this remain in CAIVRS after the claim is paid?

Answer: It remains in the system for 38 months after the claim is paid; however, 36 months after the claim is paid the borrower(s) are eligible for a new loan. Reference HUD Handbook 4155.1, 4.A.2.c, Handbook 4155.1, 4.A.8.a and Handbook 4155.1, 4.A.8b.

By: Ben

Ben — Sun, 25 Jul 2010 20:04:21 +0000

I’m going for a FHA 203 rehb loan I owe the IRS in back taxes but I have no tax lien will I show up on caivrs.

By: Peter

Peter — Fri, 25 Jun 2010 15:13:27 +0000

I am currently in foreclosure and have a FHA loan. I am assuming this debt will be reported to CAIVRS. Is there a time frame before I can qualify again for another FHA loan? I’ve heard of different timelines anywhere from 3-7 yrs. I’ve also read it could be 4 yrs from the date of the foreclosure to 4 yrs from the date the CAIVRS debt is paid. Is it possible to never pay the debt and still qualify for a FHA loan after a certain amount of time has passed? Thank you!!!

By: Gina Pogol

Gina Pogol — Thu, 22 Apr 2010 21:19:00 +0000

That site is not a government site; it’s a commercial one. A check on HUD’s credit underwriting guidelines http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4155.1/41551c2HSGH.pdf finds no mention of CAIVRS and non-purchasing spouses. However, it does show that in community property states, the non-purchasing spouse’s debts must be considered in the borrower’s debt-to-income ratios. In addition, you must quit claim (sign away all rights to) the property. For a VA mortgage, the spouse showing up on caivrs doesn’t necessarily preclude loan approval but it is considered a negative factor. One thing to keep in mind, however, is that lenders are free to impose stricter guidelines than FHA requires and may do so to keep their default rates down and maintain their FHA approval.