In short a CAIVRS Report is a report to see if you ever defaulted on any previous government loans. CAIVRS stands for Credit Alert Verification Report System. You must have a clear CAIVRS Report to get a new government loan, such as a FHA, VA or USDA Loan. This report will show if you have defaulted on any past Government Mortgages or even Government Student loans such as Sallie Mae Student loans. This report is pulled when you loan is getting ready for or in underwriting.
If you do not pass the CAIVRS Report you must address the account that is appearing, which can mean paying the amount owed when you defaulted. Or your Mortgage will not be approved. Keep in mind you can be pre-approved for a mortgage and the lender not pull your CAIVRS Report, which could lead to your loan being denied. Any time I see a possible past defaulted government loan, I pull a CAIVRS Report before issuing a Mortgage Pre-Approval Letter. If you know you have a past defaulted Government loan, make sure to tell your lender.
Don’t let the CAIVRS Report cause your loan to be denied!