A Student Loan Cash-Out Refinance. Trade The Student Debt For Equity.
Use the equity in your home to pay off student loans in one refinance, under a transaction type built for exactly that.*
Quick answer
Saxton Mortgage does. At least one conventional program we offer allows Fannie Mae’s student loan cash-out refinance. At least one student loan must be paid in full at closing, with the money sent directly to the servicer, and a borrower must be on that loan. Cash back to you is limited to the greater of 1% of the new loan amount or $2,000.
A recognized transaction, not a workaround.
Fannie Mae names this one specifically. The proceeds pay the student debt directly rather than landing in your account.
- Proceeds must pay at least one student loan in full*
- The payoff goes directly to the servicer*
- Payoff funds go straight to your student loan servicer
- Every student loan included must be paid off in full
- Personal cash back limited to $2,000 or 1% if larger
- One program will not take Texas primary residences*
Structured as a student loan cash out refinance*
Proceeds pay at least one student loan in full*
The debt is paid directly rather than handed to you
No minimum score with DU approval*
DU may waive the appraisal*
Rentals up to four units qualify*
What is the Saxton Student Loan Cash-Out Refinance?
A refinance that pays student debt from home equity in one transaction
This replaces your mortgage with a larger one and uses the difference to pay off student loans. It is a transaction type Fannie Mae names and writes rules for, not a general cash out that you happen to spend on education debt.
Two things decide this one: how much equity sits in the property, and whether the student loan can be paid off in full rather than partly. The payoff goes straight to the servicer either way.
The distinction matters. Because the payoff goes directly to the student loan servicer, the transaction is treated on its own terms rather than as an ordinary cash out. The loan must be paid in full rather than partly reduced.*
Why choose the Saxton Student Loan Cash-Out Refinance?
Built for homeowners carrying education debt and equity at the same time.
One Payment Instead Of Two
The student balance disappears into the mortgage, which leaves one payment rather than two competing ones.
Paid In Full, Not Partly
The transaction requires at least one student loan to be paid off completely. A partial reduction does not qualify.*
Paid Direct
Proceeds go to the servicer rather than to you, which is what keeps it inside this transaction type.*
Think In Totals
Moving debt onto a mortgage lowers the monthly cost and can raise the lifetime cost. Ask for the total before you decide.
Federal Protections End
Paying a federal student loan off with a mortgage ends the protections that came with it. That is a real trade, and it should be a conscious one.
Equity Decides It
How much you can clear depends on the equity in the property rather than on the size of the student balance.*
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about paying student debt with home equity.
Saxton Mortgage does. At least one conventional program we offer allows Fannie Mae’s student loan cash-out refinance. At least one student loan must be paid in full at closing, with the money sent directly to the servicer, and a borrower must be on that loan. Cash back to you is limited to the greater of 1% of the new loan amount or $2,000.
Yes. When the refinance retires student debt under Fannie Mae’s rules, the usual cash-out pricing adjustment is waived, though standard cash-out financing limits still apply. The loan must go through DU, and the only subordinate liens it may clear are ones that bought the home.*
Mostly no. The servicer receives the payoff directly at closing, and Fannie Mae limits what you personally receive to whichever is higher: $2,000 or 1% of the refinance amount. One program sets a tighter limit: the lesser of $2,000 or 2% of the loan.*
No. Fannie Mae rules out partial payments under this feature, so every student loan you include is retired completely. Not every student loan has to be included, though: the rule requires at least one to be paid off.*
Fannie Mae’s rule covers student debt owed by someone signing the new mortgage, and each loan included is paid off completely. Before you include a federal loan, ask your servicer how paying it off would affect you.*
As much as fits under the new loan’s limits. One program’s 2026 ceiling for a single-family property is $832,750, and its high-balance version reaches $1,249,125 in high-cost counties. The loan cannot exceed the county limit, and standard Fannie Mae cash-out financing limits apply.*
Only if your spouse signs the new mortgage as a co-borrower. Fannie Mae requires someone on the refinance to owe each student loan being paid off, so debt owed only by a non-borrowing spouse does not qualify.*
Yes. You can include several, provided each one is retired completely, paid straight to its servicer at closing, and owed by someone signing the new mortgage. The feature applies once at least one student loan is paid off.*
Yes, and there are two ways to do it. A general cash-out refinance puts the money in your account and you send it to the servicer yourself. This page is the other route: a cash out refinance to pay student loans that Fannie Mae names as its own transaction type, where the proceeds go directly to the student loan servicer and at least one loan is paid in full. That direct payoff is what qualifies the file for the named transaction rather than the general one, and a licensed loan officer can tell you which route fits the equity you have.*
Find out what you qualify for
If you are carrying education debt and equity at the same time, there is likely a Saxton Student Loan Cash-Out Refinance that fits. Get a fast, no obligation pre-qualification today.
Get Pre-Qualified*Loan amounts, rates, terms, and down payment requirements are subject to credit approval, income and asset verification, and program eligibility. Student loan cash-out refinancing is a defined transaction type with its own requirements, including that at least one student loan is paid in full and that proceeds are disbursed directly to the servicer. Paying off a federal student loan with mortgage financing ends the protections attached to that loan. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.