Student Loan “Cash-Out Refinance”

The new changes Fannie has put into place will waive the increased fees & higher interest rates associated with “traditional cash out” refinance transactions.

Mortgage Lenders (including Griffin Funding) have changed how student debt is calculated by accepting the student loan re-payment amount listed on the clients credit report. Previously, lenders were required to factor in 1% of the student loan balance monthly payment on the student loan and many borrowers’ debt ratios were pushed beyond most lenders’ underwriting limits.

Students on an “income-based repayment plan” typically have lower payments and now ONLY the monthly repayment amount counts toward the debt-to-income ratio to determine mortgage eligibility.

Currently there are over 5 million borrowers who participate in federal reduced-payment plans student loans but they often couldn’t qualify for home ownership because of the way their debt to income was calculated.

Contact Griffin Funding for more information on student loan mortgage options at 888-721-0003 or fill out our contact form.


Recent Posts

Mortgage Loans for Gig-Workers, 1099, Social Media Influencers, Self Employed and More!

While the gig economy has been around for a while, since COVID hit, it has completely blown up. In 2020, the gig economy grew by 33%, expanding 8.25x faster than the US economy as a whole. The same year, 2 million Americans tried “gig work” for the first time, and 34% of the US workers Read More…

February Market and Company News!

Jobs report gives Fed green light for more rate hikes The Federal Reserve is almost certainly raising interest rates in March. The only question now is by how much. The strong January jobs report is the last piece of evidence the Fed needs to show that inflation pressures are not going away anytime soon. With Read More…

Demographics are changing for Remote Workers- Including Income Taxes and Lifestyle changes

Where we live has been dictated by where we can find a good job. That truism has defined much of where Americans reside — clustered in and around lucrative job markets.  Working remotely isn’t just another perk in a benefits package, it’s the opportunity to move freely and still continue the same career, ideally with Read More…