Is a borrower eligible if they have a delinquent Federal debt but have a clear CAIVRS?

If a delinquent federal debt is reflected in a public record, credit report or equivalent, or CAIVRS or an equivalent system, the lender must verify the validity and delinquency status of the debt by contacting the creditor agency to whom the debt is owed.

If the creditor agency confirms that the debt is valid and in delinquent status as defined by the Debt Collection Improvement Act, then the borrower is ineligible for an FHA-insured mortgage until the borrower resolves the debt with the creditor agency.

In order for a borrower with verified delinquent federal debt to become eligible, the borrower must resolve their federal non-tax debt in accordance with the Debt Collection Improvement Act.

The creditor agency that is owed the debt can verify that the debt has been resolved in accordance with the Debt Collection Improvement Act.

The lender must include documentation from the creditor agency to support the verification and resolution of the debt.

For additional information see Handbook 4000.1 II.A.1.b.ii.(A)(10) available at