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@Anonymous wrote:
Thank You for your response. My concearn is that I am 2 months away from completing SL Rehab and my husband and I are looking to purchase a home. We would like to try for an FHA loan but when we previously tried to apply our default was my SL which appeared in CAIVRS. I have worked diligently to clean up our credit and raise our scores. We have 0 collections. My question is how long after my SL Rehab is complete can we try to apply again?
Hi CheryR,
You are good to go right now. Here's why I say that. Generally it will take you 30+ days to find a home & another 30 days to close once you're under contract so even if you are in the CAIVRS system you'll either be out by the time you're ready to close or the student loan will be rehabbed at which point I wouldn't need a clear CAIVRS to get your loan closed.
Personally, I would wait until I am done and everything is updated, but I guess that also depends on what the inventory is like in your area. I don't think it hurts to start looking now, but you don't know what your end result is going to be with the student loan tradelines. Will you need tradelines to be updated/corrected for score improvement in order to qualify? Or are your scores currently acceptable? If you find something and are under contract before everything updates, you may end up with significantly higher scores and now qualify for a lower interest rate. The rehab is also not considered complete until the loans have been picked up by a new provider, if for some reason they are slow to do this you could be in a predicament as well. There are just too many unknowns in my opinion.
I am not an anxious person at all (at least that is what I like to think, LOL), but I had so much anxiety with the whole home buying process and can't wait for it to be over. Speaking for myself, I would want everything done and as ready as could be before I officially began house hunting. I'm not sure, can you get a pre-approval without clearing CAIVRS? I know my seller wanted my pre-approval before they would accept my offer.
@Anonymous wrote:
No unfortunately I can not get pre-approved without a clear CAIVRS that was where we got stuck last time! I want to be as patient as possible but we're running out of options in the area we're interested in.
Hi CheryR,
Yes you can, it just depends on the lender. Like I said before, as long as the student loans are in repayment, I don't need a clear CAIVRS for FHA or VA loans.
@Anonymous wrote:
Thank You! Im not sure why another FHA lender is telling me that even if my SL are in rehab I need to complete the program before applying basically saying Rehab is not considered a repayment option.
It probably is on overlay or just a difference in interpretation of the guidelines. Just like them requiring a clear CAIVRS prior to closing.