How Do I Remove a CAIVRS Alert to Qualify for a Mortgage?
CAIVRS is an automated monitoring system that tracks defaults on Government debt.
If you have been a victim of foreclosure, short sale, or deed in lieu of foreclosure on a FHA or USDA mortgage, you will have a CAIVRS alert associated with your social security number.
Default on student loan debt will also trigger a CAIVRS alert and can prevent you from using an FHA or USD Government-insured mortgage.
- What is CAIVRS?
- Waiting Periods After Losing Your Home
- How CAIVRS Can Stop You From Buying a Home
- Did HUD Waive the CAIVRS Waiting Period?
- How to Clear CAIVRS / How to Get off the CAIVRS List
- How Do I Clear Delinquent Student Loans from CAIVRS?
- How Long Does it Take to Clear CAIVRS After A Student Loan is Paid in Full?
- Can I Check My won CAIVRS Report?
What Is CAIVRS?
CAIVRS (the Credit Alert Verification Reporting System) is a system run by the U.S. government to let lenders know if someone applying for a federally-supported loan has any debt due to the federal government that is currently in default, foreclosure, or has had a claim paid within the last 3 years.
Basically, it tells lenders whether you have stopped paying on a federally-supported loan (including federally-supported student loans) in the recent past, whether it is still outstanding, or has been recently paid off.
Anyone applying for a VA, FHA, or USDA loan is screened through the CAIVRS system before their loan is approved. In most cases, if CAIVRS shows you have a defaulted loan, you won’t be able to receive an FHA, VA or USDA loan.
Waiting Periods After Losing Your Home
In these troubled economic times, there have been many individuals and families across the country that have fallen victim to bankruptcy, foreclosure, short sale, or a deed in lieu of foreclosure as a result of the real estate collapse.
The path forward, if you experienced one of these financial setbacks, is typically just a waiting period. The waiting period to be eligible to buy again will depend on the type of financing you are using.
Conventional Loan Waiting Period
You can buy using conventional financing in:
- 4 Years after the discharge of a Chapter 7 Bankruptcy
- 2 Years after the discharge of a Chapter 13 Bankruptcy
- 4 Years after a Short Sale or Deed in Lieu of Foreclosure*
- 7 Years after a Foreclosure*
* If your mortgage was included in a bankruptcy, and a foreclosure, short sale, or deed in lieu occurs after the discharge, an underwriter may use the bankruptcy waiting period and ignore the subsequent default of the mortgage.
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VA Waiting Period
You can buy using VA financing in:
- 2 Years after the discharge of a Chapter 7 Bankruptcy.
- 1 Year after Filing a Chapter 13 Bankruptcy if you have satisfactorily made at least 12 months’ worth of the payments and the Trustee or the Bankruptcy Judge approves of the new credit.
- 2 Years after a foreclosure or deed in lieu of foreclosure.
- Short Sale – VA does not recognize a short sale as a derogatory event. If you are able to credit qualify for a VA loan, a short sale would not prevent you from being eligible for VA financing. Updated 4/2016
USDA Waiting Period
You can buy using USDA financing in:
- 3 Years after the discharge of Chapter 7 or 13 Bankruptcy
- 3 Years after a Short Sale or Deed in Lieu of Foreclosure*
* If your mortgage was included in a bankruptcy, and a foreclosure, short sale, or deed in lieu occurs after the discharge, an underwriter may use the bankruptcy waiting period and ignore the subsequent default of the mortgage.
FHA Waiting Period
You can buy using FHA financing in:
- 2 Years after the discharge of Chapter 7 or 13 Bankruptcy.
- 1 Year after the discharge of a Chapter 13 Bankruptcy (manual underwriting only).
- 3 Years after a foreclosure, short sale or deed in lieu of foreclosure.
How CAIVRS Can Stop You From Buying a Home
If your foreclosure, short sale, or deed in lieu happened with an FHA or USDA mortgage, a CAIVRS alert is in effect for 3 years from the date that the mortgage insurance claim is paid to the original lender.
While all other waiting periods are measured from the date that the deed of trust is transferred out of your name, the waiting period for a new Government mortgage begins from the date the mortgage insurance claim is paid.
CAIVRS claims are causing considerable challenges for home buyers that were shocked to find out that the mortgage insurance claim was not issued until months, or even years after the home was transferred out of your name.
This biggest challenge with having a CAIVRS land mine explode under your feet is that inexperienced loan officers do not even know to look for this surprise, until it’s often too late.
If not caught early, the CAIVRS alert will not be caught until you are well into the process to buy your new home. More often than not, this challenge rears it’s ugly head weeks before the closing date.
Did HUD waive the CAIVRS Waiting Period?
I am now seeing a pattern of HUD volunteering to suppress the CAIVRS alert if you provide them with a scanned copy of the transfer deed removing your name from title.
I have seen this done several times in the past 30 days, and it was undeniably confirmed when I got this email from a client:
Please email a copy of the Trustee’s Deed Upon Sale to answers@hud.gov. If the sale occurred over 3 years ago we can process an early CAIVRS suppression.
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You may also speak directly to a customer service representative by calling 1-800-CALL-FHA (1-800-225-5342) from 8am to 8pm EST or visit our online knowledge base at www.hud.gov/answers, 24 hours/7 days a week.
This is not an isolated incident. Because we specialize in qualifying for a mortgage after a financial hardship, I see patterns and emerging trends.
I’ve taken at least four phone calls and emails in the last few weeks about CAIVRS suppressing the alert so that you can go by the foreclosure, short sale, or deed in lieu date, and not when the mortgage insurance claim was paid.
How To Clear CAIVRS / How To Get Off The CAIVRS List
You won’t be able to take out a new federally-backed (FHA, VA, USDA) if a search on the CAIVRS database shows that you have delinquent federal debt. But you can take action to clear that information for the future, including:
- Wait long enough for the problem to drop off your report (times required for each type of delinquency to no longer appear on your report are listed in this article)
- Prove you’re eligible for a CAIVRS exception. Exceptions do exist. If you can provide documentation for special circumstances, like
- Someone else assumed your FHA loan and they (not you) defaulted on it
- You got a divorce, and your ex-spouse who was totally responsible for the mortgage (and that fact is clear in your divorce decree) they were the ones who defaulted
- You were a victim of a presidentially-declared disaster, as long as you were current on your mortgage payments prior to the disaster
- Your bankruptcy was due to circumstances beyond your control, like the death or illness of the primary wage earner
- You are selling your primary residence which is the source of the report and the buyer is using VA, FHA, or USDA financing.
- Pay off the past-due balance in full and provide documentation of that fact
- Set up a payment schedule for the past-due balance and create a 9-12 month history of making timely payments.
How Do I Clear Delinquent Student Loans From CAIVRS?
To clear a delinquent student loan from CAIVRS you will need to resolve the debt with the reporting agency. Though technically there is a process to get a CAIVRS waiver for student loans, it rarely happens.
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Defaulted student loans stay on CAIVRS until you get out of default. Unfortunately, agreeing to resume monthly payment on a defaulted student loan won’t remove you from CAIVRS. The only way to remove them is to undergo settlement, get a debt consolidation loan (and pay it off with that) or be part of a loan rehabilitation program and make consistent, on-time payments on that loan for at least 9-12 months.
How Long Does It Take To Clear CAIVRS After A Student Loan Is Paid In Full?
It typically takes 2-3 weeks after documentation of full payment of a defaulted student loan for it to clear off your CAIVRS report.
To get a CAIVRS block cleared from your record once you start participating in a loan rehab agreement, (where you resume payments on defaulted student loans,) you will need to work with your lender, then make on-time payments of your agreed-upon amounts for at least several months, (we’ve seen reports of 3 – 12 months) after which the loan servicer can request a release of the claim.
Can I Check My Own CAIVRS Report?
There is no way for a normal person to check their CAIVRS report. You will have to have an FHA-approved lender verify your CAIVRS status for you.
Working with a Mortgage Expert
Choosing the best mortgage based on your qualifications requires that you work with a professional loan officer that has experience with all of the options that are available to you.
All mortgage companies are NOT created equal. Big box lenders that advertise on TV, radio, and the internet, often only target very narrow qualifying criteria.
These popular lenders spend millions of dollars on marketing and advertising, only to dump you into a call center and put you in the hands of an inexperienced customer service telemarketer.
Big box lenders try to convince unsuspecting consumers that it’s the lender that matters, and never mention the fact that your loan officer is the gateway to you getting the best mortgage.
You should avoid these types of lenders at all costs if possible. They do not offer lower rates or better service, but they do have more money to convince you that they do.
Set Yourself Up for Success
The absolute first step to buying a home is to get your financing ducks in a row before you start looking for a home. This means working with a mortgage professional.
Once you find an expert loan officer that you trust, ask them for an introduction to a local real estate agent that they trust. Even if the loan officer is not from the community that you’re buying in, they will still be able find an agent that rises to the level of professionalism you deserve.
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Not sure where to find a professional loan officer that you can trust? You’re in the right place!
About the Author
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Have Questions or Comments?
I defaulted on an DBA loan in 2017 and it was reported to caivers. I had filed bankruptcy chapter 7 the following year and had the debt discharged March 2018. Caivers will not remove nor has it fell off. I contacted the sba and they stated the debt was released but it’s up to lender to waive it. My apologies I applied for an fha loan last month and no one could help. Will this be removed on its own or what can o do?
Hi Todd, SBA loan typically cannot be discharged in bankruptcy. While the BK was discharged, and the lender is not allowed to collect, it is defaulted Government debt and you would need to contact the lender to make arrangements to pay it back, or ask them to forgive it, which is unlikely. Have you looked at Conventional financing that follows either Fannie Mae or Freddie Mac underwriting guidelines? These options will bypass CAIVRS. If you need additional help, feel free to email me directly at scott@findmywayhome.com
It has been 3 years and 6 months since my home sold at auction. I had an FHA mortgage. I am currently trying to buy a new house but there is a CAIVRS report still coming up for the original foreclosed home. I called the number that was on the CAIVRS report and they sent it in for review. I received an email today to have the New Lender wait 24-48 hours before they run a new report. What it doesn’t say, is are they removing the negative issue? Of course we a freaking out about the possiblity of losing the new home we have found. The house sold at auction on 9/04/2019. Is that the date they should be going by for the 3 year waiting period. Another concern is after that sale date, we were all hit with Covid shutdowns in local governments. Could this be the cause for the delay. Thank you for any help with this situation.
Hi Colleen, a CAIVRS alert isn’t a negative item that will impact any other area of your life. The “waiting period” begins on the date that the lender took ownership of the home (so they could sell it at auction). CAIVRS is going to stay on your account for 3 years from the date that the mortgage insurance claim is paid.
24-48 hours is pretty normal for suppressing the CAIVRS Alert. It sounds like everything is going as it should.
If your loan officer brings up anything that you don’t understand, feel free to reach out to me or any other expert on this website.
I hope this helps?
Hello, I am trying to purchase a home and my student loans are in default. I have contacted the default resolution group and have set up a repayment plan but before when I was going thru this process they said I didn’t have another loan to consolidate with. So how would I get my loans out of default to clear the CAIVRS report??
Hi Jasmine, I don’t know enough about your situation to offer a specific solution, but I can tell you that if you have federal student loan debt in default, an FHA loan is going to be a challenge.
Have you looked at using a Conventional loan that follows Fannie Mae or Freddie Mac underwriting guidelines? Neither of these options look at CAIVRS.
I hope this helps?
one day before the closing date to purchase a property regards to the caivrs listing, however I had supplied the loan officer with the title sale date… informed about the list, so my question is this since my foreclosure was not included in the bankruptcy discharge date March 2017 how long would I have to wait before I’m eligible to purchase again the foreclosure date listed for the title sale July 17th 2018, and would I ever be able to USDA…on the list due to FEMA loan. Thanks you for any answer…
I am expected to close November 11, 2021 and just discovered I am on CAIVRS. I had a foreclosure in October 2018 when my child’s father passed away unexpectedly. The deed was not transferred until March 2019. I’ve had a great credit history and ontime payments since then. Current FHA loan was manually underwritten and approved after writing a letter and providing documentation. How can I get this removed to purchase the home in time?
Hi Brenda, Did you let your loan officer know about this foreclosure? This should have been addressed much earlier than this.
So, if the foreclosure took place in October, that would be the date that deed was transferred out of your name back to the bank. Was March 2019 when the FHA mortgage insurance claim was paid to the old lender? Or when the home was resold to a new owner?
If it was truly foreclosed in October, then you should be able to provide a foreclosure deed to CAIVRS. If 36 months have passed since the foreclosure, they should be able to do what is called a “suppression” of the Alert and allow you to close on the new FHA loan.
It sounds like there may be more to this. If you would like, you can also email me directly at scott@findmywayhome.com.
I hope this helps?
Hi Scott My name is Taisha and I’m currently pre approved for FHA loan and I found my dream home with an accepted offer. As I’m doing my own research I stumbled across the Caivrs check . I have a federal student loan that’s in default but I didn’t know this can potentially come up and I lose my chances on getting the house. Why didn’t my loan officer tell me this before I got in too deep? What can I do to avoid coming up on Caivrs and how can I fix this before closing. I’m supposed to close by August 19th . Also can he change my fha loan to conventional with my co borrower my credit score is 750 and his is 645. I’ll will appreciate any advice .This process is nerve racking.
Hi Taisha, thank you for your question. Yes, there are a couple of options here. The first option is to pay the defaulted student loan. If that is not an option, then yes, you can use Conventional financing which does not use CAIVRS.
If you need your co-borrower because your income alone will not qualify you for the loan, you absolutely can. A 645 credit score is ok with Conventional, but it is riskier, and the rate would be a little higher if you can get an automated underwriting approval.
I would absolutely ask your loan officer to run DU (Fannie Mae desktop underwriter) and see if you can get an approval.
Defaulted student loans might be difficult to notice, so I’m not super concerned that your loan officer dropped the ball here. If you told them up front that you have a defaulted student loan and that you are concerned it might be an issue, and the loan officer said “don’t worry about it”, then you’re working with a loan officer that doesn’t have the experience to know better, doesn’t have the work ethic to research it, or doesn’t have the ethics to tell you that they need to research it and get back to you.
You have options. I hope this helps?
I just found out that my student loan showed up on Caivr report. I have been paying off the loans through Social Security since September 2016. I am trying to save a house I have been renting a room in for twenty years from foreclosure. I owe less than 6000 on the loan.
Is there anything I can do. I I want to buy house.
Hi Kathy, have you tried to call HUD/CAIVRS yourself? The alert shows up if your student loans are in default. If you are in a repayment plan, and currently paying on the loans, you should be able to get the alter suppressed for the purposes of qualifying for the mortgage.
1-800-CALL-FHA (1-800-225-5342) from 8am to 8pm EST or visit our online knowledge base at www.hud.gov/answers, 24 hours/7 days a week
Paying off the student loan is the most obvious solution, but may not be the easiest one. Again, if you’re in good standing on the repayment plan, I would be shocked if they didn’t allow you to qualify for a mortgage.
I hope this helps?
The first option is asking for an Extenuating Circumstances Exception..Execption…broke my neck in 4 places, c3-c7…Rehab and surgery took 4 years…) $0 money coming in at that time.Direct result of this was f/c.100% disabled because of this. We are 3 weeks out of f/c that took 12 years to complete..FICO 740, almost 0 debt…paying everyone off that I can..We want to buy a house in Valrico, Fl. Can you help us..any loan type minimal down…no VA
Hi Gary, FHA is pretty strict when it comes to granting extenuating circumstances exceptions, and it sounds like you may have met one of their 2 criteria. To qualify for an FHA exception requires the death or permanent disability of a primary wage earner.
If you are currently 100% disabled (as evidenced by SSI), you may be eligible for an exception, but that’s going to be the underwriter’s call. There is no specific guideline that directs the underwriter on what to do here, only that they can grant an exception if they feel that you meet the guideline. It’s almost always the timing and the documentation that prevents these exceptions from being granted.
A couple of other thoughts here. Was there a bankruptcy at any point during these past 12 years? If so, there may be a better route than trying to get an FHA extenuating circumstances exception.
Feel free to shoot me an email directly at scott@findmywayhome.com to dig into this further. If we identify an opportunity for you to buy now, I can introduce you to someone I know and trust that can get you pointed in the right direction.
Hope this helps?
Scott, My name is Janice A Smith.
I am trying to buy a home going through VA loan. I have met all the qualifications, but undeniably a CAIVRS alert came up.
My husband passed in 2014, in 2011 we got a SBA loan to rebuild our home as it went through a flood. I was trying to keep up with all the bills, but just could not keep up. I even tried renting my house & moving in with my daughter. The renter’s ruined alot & I had to fix & put on the market. It did not sell & was getting close to foreclosure, I worked with a SBA agent & the home had a short sale. Now on your site under under VA wtg period period for a short sale is not derogatory and shouldn’t be considered under CAIVRS.
In 2016 I filed bankrupcy chpt 7, did not include the house.
Back in 2017 my home was going towards foreclosure, but it sold as a Short Sale. Can you help me to clear this up? My closing date is February 12, 2021 & my loan officer said this has to be cleared BEFORE that date.
Hi Janice, HUD is not going to suppress a CAIVRS Alert from a defaulted or short sale SBA loan. Your only option to get around this is going to be a Conventional loan that follows Fannie Mae underwriting guidelines four years from the discharge date of the Chapter 7 bankruptcy.
Do you know if your loan officer has looked at this solution? If you need an introduction to a loan officer that I know and trust that knows these guidelines, shoot me an email to scott@findmywayhome.com and I can help make that connection.
I’m so sorry that you find yourself in this situation, I hope this helps?