Credit Card Center Advertiser Disclosure

Reply
New Visitor
Posts: 2
Registered: ‎06-25-2016
0 Kudos

Re: Cleared Caivrs in 45 days through Loan consolidation with the William D Ford Program!

I am interested in your thoughts. I am in the process of buying a home via FHA loan, a little over 30 days to closing (29July). I have a defaulted student loan (~$13K 9incl interest and fees) from 20 yrs ago that I suspect might mess me up near the end re: CAIVRS. I've contacted the loan originator and the collection company who is willing to settle for 70% of the original loan amt. I've considered the consolidation path, but concerned that a new loan will ruin my chances of getting the FHA and now concerned that CAIVRS will end things anyway. So I have a few questions: will I be able to get off the list before closing? And will the consolidation loan mess me up further? I need help navigating this because I only have a few days to get this all cleared up before closing!! HELP PLEASE!!

Contributor
Posts: 91
Registered: ‎04-09-2012
0 Kudos

Re: Cleared Caivrs in 45 days through Loan consolidation with the William D Ford Program!

Hello and good morning!

OK you have 30 days until.closing. What is your debt to income ratio? Can your loan processor tell you or loan officer get that information? As long as you remain under that threshold you should be able to consolidate and be fine. Since the loan is not showing up on credit report like mine did not show that check will slow things down. If you have the ability to pay it off that should afford you enough time to clear caviers where it won't affect you but you will have to do one of the two. If you consolidate look at my notes and look how long it took me and they say that was fast. Best option would be to pay then clear but even if you don't it won't add that much to your debt to income ratio just make sure you have enough room. That's what they are going to be looking at. Smiley Happy
Valued Contributor
Posts: 2,711
Registered: ‎11-21-2013
0 Kudos

Re: Cleared Caivrs in 45 days through Loan consolidation with the William D Ford Program!


vlaw1084 wrote:
Hello and good morning!

OK you have 30 days until.closing. What is your debt to income ratio? Can your loan processor tell you or loan officer get that information? As long as you remain under that threshold you should be able to consolidate and be fine. Since the loan is not showing up on credit report like mine did not show that check will slow things down. If you have the ability to pay it off that should afford you enough time to clear caviers where it won't affect you but you will have to do one of the two. If you consolidate look at my notes and look how long it took me and they say that was fast. Best option would be to pay then clear but even if you don't it won't add that much to your debt to income ratio just make sure you have enough room. That's what they are going to be looking at. Smiley Happy

Hello Vlaw. I am trying to help out my younger sister, who has a 15 year old defaulted Federal Student loan, but does not show up on her credit report. She wants to rehab, but is terrified that her existing credit lines thru credit card banks will be drastically cut if a rehab shows up on her credit. I have no clue. she is not looking for a mortgage at the moment, but wants to care of this. Thanks for any help.

Valued Contributor
Posts: 2,711
Registered: ‎11-21-2013
0 Kudos

Re: Cleared Caivrs in 45 days through Loan consolidation with the William D Ford Program!


Kimmraderie wrote:

I am interested in your thoughts. I am in the process of buying a home via FHA loan, a little over 30 days to closing (29July). I have a defaulted student loan (~$13K 9incl interest and fees) from 20 yrs ago that I suspect might mess me up near the end re: CAIVRS. I've contacted the loan originator and the collection company who is willing to settle for 70% of the original loan amt. I've considered the consolidation path, but concerned that a new loan will ruin my chances of getting the FHA and now concerned that CAIVRS will end things anyway. So I have a few questions: will I be able to get off the list before closing? And will the consolidation loan mess me up further? I need help navigating this because I only have a few days to get this all cleared up before closing!! HELP PLEASE!!


I hope all goes well with the FHA loan. Thankfully myfico forums is around to help us.

Contributor
Posts: 162
Registered: ‎06-30-2007
0 Kudos

Re: Cleared Caivrs in 45 days through Loan consolidation with the William D Ford Program!

[ Edited ]

FHA does not require a clear CAIVRS in regards to delinquent student loan debt.

 

Please read all the documentation from the FHA handbook and two emails received directly from the FHA resource center in my thread here:

 

http://ficoforums.myfico.com/t5/Student-Loans/CONFIRMED-FHA-loan-with-defaulted-student-loan-in-reha...

Contributor
Posts: 91
Registered: ‎04-09-2012
0 Kudos

Re: Cleared Caivrs in 45 days through Loan consolidation with the William D Ford Program!

They may have recently changed the regulations on this but are you willing to take that risk and not close because of it? My view is better to be safe than sorry when your in crunch time. You owe it to yourself to make absolutely sure it won't stop you because it almost did with me.
Contributor
Posts: 162
Registered: ‎06-30-2007
0 Kudos

Re: Cleared Caivrs in 45 days through Loan consolidation with the William D Ford Program!

Since I have two emails directly from the FHA Underwriting department and one from my lender (who showed my paperwork to his underwriter), there is no doubt I have my bases covered.  I am not willing to tank my credit by leaving the default on there by doing a consolidation when I know I do not have to.  I am sorry that your lender did not know this.  It would have helped you in the long run!  To be fair, my loan officer did not know either.  I did a LOT of reading to find what led me to ask my lender and the FHA about the rehab being enough to qualify.

Contributor
Posts: 91
Registered: ‎04-09-2012
0 Kudos

Re: Cleared Caivrs in 45 days through Loan consolidation with the William D Ford Program!

Thank you for replying. First off my credit was not harmed in any way by consolidating my loan so let clear that up for you. My credit score actually improved when I went this route. Since I went VA many years ago they may have loosened those regulations on caivrs and since this was the department of education that was actually blocking it I applaud you for finding another way. Let me know how that turns out for you and I wish you well on your closing!
Contributor
Posts: 91
Registered: ‎04-09-2012
0 Kudos

Re: Cleared Caivrs in 45 days through Loan consolidation with the William D Ford Program!

One more note. You made an agreement with the institution that placed you in caivrs so they still habe to clear you from that system. Since I went VA not FHA the requirements for me were more stringent being that it is backed by the VA.

I wish you good luck in your journey and let us know when you close!
Contributor
Posts: 162
Registered: ‎06-30-2007
0 Kudos

Re: Cleared Caivrs in 45 days through Loan consolidation with the William D Ford Program!

Actually my whole point was that the caivrs DOES NOT need to be clear if you show in writing that you have an agreement.  Caivrs will not be clear until the rehabilitation is completes after 9 payments.  I will certainly let you know when we close and thanks you for the reply.

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.