Since the USDA Loan program is a federal government insured loan program, borrowers on the loan must pass a CAIVRS check, to ensure that they don't have any outstanding obligations owed to the U.S. Government. CAIVRS (pronounced KAY-vers), stands for Credit Alert Interactive Verification Reporting System, and it lists liens, defaults and outstanding debt owed to Federal Government. Examples of what could cause a borrower to be listed on the CAIVRS system includes a foreclosure on a government backed loan such as FHA, VA, or USDA Loan, defaulting on student loan debt, having Federal tax liens, etc.
There are situations in which a borrower, who has an active CAIVRS claim may be able to have a CAIVRS claim cleared, if the borrower can document that the claim is incorrectly enforced. In order to contest a CAIVRS claim, request a copy of the CAIVRS Number by contacting Millennial Home Loans at (866) 552-5912. With the CAIVRS information contact the Department of Housing and Urban Development or HUD at (800) 225-5342 and reference your CAIVRS Authorization Number. You will request that HUD release the CAIVRS claim, explaining to the HUD Representative why the claim should be waived. You will probably need to forward HUD supporting documentation as directed by the HUD customer service representative.
To learn more about the Maryland USDA Guaranteed Loan program please call (410) 567-0994.