Like FICO Scores, The Government’s CAIVRS Codes Can Impact Your Ability To Obtain A Mortgage Loan
Your FICO score (a type of credit score created by the Fair Isaac Corporation) can positively or negatively impact your application for a federally insured mortgage. This score is based on your credit information and is used to help lenders predict your behavior, such as whether or not you will pay your bills on-time. FICO scores ranges from 300-850.
Five factors go into FICO scores:
- Payment history (35% of the FICO score)
- Debt/amounts owed (30%)
- Age of credit history (15%)
- New credit/inquiries (10%)
- Mix of accounts/types of credit (10%)
To see what is on your credit report you can request a free, annual report at www.annualcreditreport.com. The free report does not include your credit score.
CAIVRS (Credit Alert Verification and Reporting System) is a database maintained by the government to identify people that are delinquent on a federal debt and/or have had a claim (paid to a lender for default on a federal loan) within the previous three years.
The following agencies report delinquencies:
- The Department of Housing and Urban Development (HUD)
- The Department of Education (DOE)
- The Department of Justice (DOJ)
- The Department of Veterans Affairs (VA)
- The Department of Agriculture (USDA)
- The Federal Deposit Insurance Corporation (FDIC)
- The Small Business Administration (SBA)
- CAIVRS codes are:
“A” = Approved
“C” = Claim
“D” = Default
“E” = Education
“J” Justice Department
Lenders generally do not conduct a CAIVRS check for the loan pre-approval process. The check will be completed once you are in contract and you will only be notified if the code is anything other than an “A”. The CAIVRS system is not available for public use. You can learn more about CAIVRS here.