HELOC With Student Loans In Deferment
Deferred, in forbearance, or on an income-driven plan, your student loans still count when you apply for a HELOC. Here is how the programs we offer count them, and where a $0 payment can work.
Where we lend: Saxton Mortgage, LLC, NMLS #1717191, is licensed in 41 states: Alabama, Alaska, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, and Wyoming. See license details by state.
Quick answer
Yes, through Saxton Mortgage. The deferred loan still counts in your debt-to-income: at least one HELOC program we offer counts it as 0.5% of the outstanding balance, and others count it as 1%, or use a fully amortizing payment from your documented repayment terms.
Student loans and HELOCs: programs side by side
How four HELOC programs we offer count your student loans when calculating debt-to-income.
| Rule | Program A | Program B | Program C | Program D |
|---|---|---|---|---|
| Deferred or forbearance loan | 0.5% of balance, or fully amortizing payment | 1% of balance, or fully amortizing payment | 1% of balance, or fully amortized payment | Original balance divided by term; 0.5% of balance if term missing |
| Income-driven $0 payment | $0 on credit report needs documentation | $0 allowed once verified | $0 allowed with servicer confirmation | Ask us |
| Wrong payment on credit report | Most recent statement used | Statement payment used | Servicer statement accepted | Ask us |
| Minimum credit score | 680 | 640 | 670 | 640 |
| Maximum debt-to-income | 50% | 50% | 50%; over 45% needs compensating factors | Ask us |
| Minimum line amount | $50,000 | $25,000 fixed; $50,000 variable | $25,000 | Ask us |
Program A is a first lien HELOC. At least one home equity loan we offer also counts every student loan in debt-to-income, whether deferred, in forbearance, or in repayment.
How we checked this: We place loans with several lenders. Each rule above comes from the current written guidelines of a home equity program we can place your loan with, checked in October 2026. We do not name the lenders on this page. Guidelines change, so we confirm every rule against your file before you apply.
How student loans are counted for a HELOC
Each item below is a requirement of at least one HELOC or home equity program we offer.
- At least one HELOC program we offer counts a deferred or forbearance student loan as 0.5% of the outstanding balance when calculating your debt-to-income, or uses a fully amortizing payment from your documented repayment terms.
- Other HELOC programs we offer count a deferred or forbearance student loan as 1% of the outstanding balance when calculating your debt-to-income, even if that is lower than the fully amortizing payment.
- On an income-driven plan, at least one HELOC program we offer can qualify you with a $0 student loan payment once your student loan documentation verifies the actual payment is $0.
- At least one home equity loan we offer counts every student loan in your debt-to-income, whether deferred, in forbearance, or in repayment.
- If the credit report shows the wrong student loan payment, at least one program uses the payment on your most recent student loan statement instead.
- At least one HELOC program does not count a liability in deferment status as a valid tradeline when it reviews your tradelines, which it does when the primary borrower has fewer than 3 credit scores.
Deferred loans still count
Income-driven plans considered
Your statement can fix errors
Credit scores above 620
Lines from $5,000
Forbearance checked up front
Can You Get A HELOC With Student Loans In Deferment?
Yes, with at least one program we offer, but the deferred loan still counts in your debt-to-income, as 0.5% or 1% of the balance depending on the program.
Deferment does not take a student loan out of a HELOC application. At least one home equity loan we offer says every student loan, whether deferred, in forbearance, or in repayment, must be counted in debt-to-income. When the credit report shows $0 or no payment for a deferred loan, at least four HELOC programs we offer still count an amount for it, based on the balance or your documented repayment terms.
Income-driven plans work differently. At least two HELOC programs we offer accept a $0 qualifying payment when documentation from your student loan servicer confirms your actual payment is $0. Another program requires documentation to verify the payment whenever the credit report shows $0, and at least one program does not accept estimated payments for qualifying.
Ask us before you plan to pay student loans off with a HELOC. At least one program we offer allows paying off debt to qualify, but not paying it down. If you want a first mortgage refinance instead, Fannie Mae has a student loan cash-out refinance that pays off student loan debt through the refinance. See our student loan cash-out refinance page.
Why choose Saxton for a HELOC with student loans
This page is for homeowners with student loans in deferment, in forbearance, or on an income-driven plan who want to borrow against their home.
Deferred Loans Counted Right
We match your file to the program whose rule fits. One counts a deferred or forbearance loan as 0.5% of the balance when calculating debt-to-income; others use 1%.
A $0 Plan Can Stay $0
When your servicer’s documentation confirms your income-driven payment is $0, at least one HELOC program we offer lets you qualify with the $0 payment.
Your Statement Beats A Bad Report
If the credit report shows the wrong student loan payment, at least one program uses your most recent student loan statement.
Credit Scores Above 620
At least one HELOC we offer lists a minimum credit score above 620. Others start at 640, 670 and 680.
Debt-To-Income Up To 50%
At least one HELOC program we offer allows debt-to-income up to 50%. Another requires compensating factors above 45%, starting with 2 months of reserves.
We Check Your First Mortgage Too
At least one program we offer will not lend if your first mortgage is in active deferment or forbearance. A student loan in forbearance is counted in debt-to-income instead.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about getting a HELOC with student loans.
Yes, through Saxton Mortgage. The deferred loan still counts in your debt-to-income: at least one HELOC program we offer counts it as 0.5% of the outstanding balance, and others count it as 1%, or use a fully amortizing payment from your documented repayment terms.
Yes, with at least one HELOC program we offer, once documentation from your student loan servicer confirms your actual student loan payment is $0. At least one program does not accept estimated payments for qualifying.
They are counted in debt-to-income the same way as deferred loans. Separately, at least one HELOC program requires the most recently opened forbearance tradeline on your credit to be more than 48 months old, so tell us about any forbearance up front.
At least one program we offer uses the payment on your most recent student loan statement instead. If the report shows $0 or no payment, documentation is required to verify the payment.
Not at every program. At least one HELOC program does not accept liabilities in deferment status as valid tradelines, and at least one home equity loan counts student loans as tradelines only when they are in repayment and not deferred.
Ask us first. The HELOC guidelines we work from do not name student loans as a payoff use. At least one program we offer allows paying off debt to qualify, but not paying it down, and Fannie Mae has a student loan cash-out refinance for first mortgages.
At least one HELOC we offer lists a minimum credit score above 620. Others start at 640, 670 and 680, and at least one allows debt-to-income up to 50%.
Find out what you qualify for
Tell us your student loan balances, their status, and what your servicer shows, and we will show you the HELOC options that fit.
Get Pre-Qualified- Consumer Financial Protection Bureau, mortgages
- Consumer Financial Protection Bureau, buying a house: tools and resources for homebuyers
*Loan amounts, rates, terms, and down payment requirements are subject to credit approval, income and asset verification, and program eligibility. Draw requirements and variable rate terms apply. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.