HELP- Refinance and IBR Issues

[C Lewis]

On 9/3/15, I was approved by Quicken Loans for a FHA refinance cash out. I purchased this home 8 years ago for $68,000 and now owe $61,000. The house was just appraised for $116,000 I was initially approved with Quicken and I was in repayment on my student loans for $0 and NOT in deferment. Quicken Loans now says that they cannot continue with my application as they must take 1% of my total loans into account as a monthly payment OR they must calculate a monthly payment based on interest only and I must pay a monthly payment that at least covers interest.

I know that changes were made on 9/14/2015 pertaining to FHA loans and I know that my case was opened prior to this.

I am a public servant. Information about student loan payment and income driven repayment plans can be found on the studentaid.ed.gov and studentloans.gov. According to the government, all people on income driven repayment will not be required to pay more than 15% of their discretionary income or what their minimum payment on a standard 10 year repayment will be; however, in order to go onto a standard 10 year repayment, one must NOT be eligible for income driven repayment.

I have worked at my college for six years. I am an educator. I will never make lots of money. I love my job. I love the university where I work. I do not plan on leaving my job.

I have student loan debt totaling about $300,000. I have an undergraduate degree, two graduate degrees and also post graduate work, all from private institutions (which is why my debt is so high). My annual income is $45,000 a year. I have a current mortgage of $773 a month, a car loan of $200 a month, a timeshare of $196 a month, $60 private loan payment and about $75-$100 in credit cards a month.

The reason that I want to refinance is 1) to pay off some of my debt (the little credit card debt that I have around $1500, which includes two collections accounts) 2) to finish remodeling our house (this should up our market value to $140K-150K) 3) to use the remainder of the money to help purchase an investment property in the future.

I really hope that you can help guide me and help me out!