Hello, guys.
I’m a junior of a university in CA. I have enough cash (need to save little more) for a down payment, so I’m thinking about buying a small, and sort of cheap (only about $100k), house. But one thing I concern is I attend in private school so that I need FAFSA. You know, the tuition for private sucks… right? Anyway, I wonder buying a house affects financial aid even if I got mortgage to buy a house. And FYI, it would be in my name (I hope), and it is the first and primary home in my family. If you need more info, let me know!
Your private school is FAFSA - only?
Is this the student who is buying a house? Will your oarents be residing in that house too? If not, it’s nit their primary residence.
The primary residence on your FAFSA is usually that of your parents.
Are you saying you earn enough money to qualify for a mortgage in your name only? Do you have a full time job?
I know you want to buy a house, but maybe it would be better to use your modest savings to pay cllege costs,mand buy a house after you graduate.
Why do you want to do this now?
No, your primary residence does not include in your assets. Also, your cash assets should decrease if you have a large down payment for the house.
@kelsmom Can you chime in here. Sounds like this is a dependent student who is buying the home in his name. However, it will be the only home owned by the family.
Eeelleee Will your family be living there? or will they still live elsewhere? If they live elsewhere, then that may be an issue. HOw old are you?
You need to get out of school first before thinking about purchasing a home. Your amount of debt - how do you plan to make house payments?
You need to finish your degree first, get a job for income stream.
The mortgage will not factor into the FAFSA formula. The equity will, if the student is dependent, most likely (don’t know the whole situation, but that’s the most likely scenario). It may or may not affect aid, depending on the particular situation. The best place to ask? The school’s financial aid office.
I don’t think you can get a mortgage without being employed.
If you have $20,000 the day you file yoir FAFSA, that will affect your EFC per FAFSA. 20% of that will be added to your contribution…so $4000.
Do you have that much money in the bank?
Even so…it might be better to use that $4000 towards your education rather than tying it up in a non-liquid asset like real estate. When you graduate, are you positive you will be remaining in the area in which you are attending college? You may need the flexibility of relocating without having to consider home ownership as a factor.
@Madison85 Nope, I do have a scholarship either
I’m confused. Are you currently receiving need based aid from your college?
Does you college only use the FAFSA to determine need based aid?
If your school uses the CSSProfile in addition to the FAFSA, it is possible the school will consider a portion of your home equity in their calculations…should you purchase a house. This varies from school to school.
Does your private university guarantee to meet full need for all? If not, buying or not buying a house might not matter at all. Your aid might not change anyway.
But the question remains…if you have sufficient income to support bong approved for a mortgage, would you even qualify for need based aid?
@thumper1 Well, yes, I’m a student who wants to buy a house. My parents will move in to the apartment for senior so the house would be for only myself. FYI: my parents don’t have a house.
And I saved 50k and the price of the house what I want to buy is 150k.
I have a part time job. And the tuition would be paid by my parents so I could pay the mortgage monthly.
Well the reason I want that house now is:
- it is only 10 min away from my college
- the house is small but 3bd-2ba so I’m thinking about renting other rooms to save more money
@mom2collegekids Well, I don’t know buy probably no. They might move in to the apartment for senior within a year/ I’m 22 tho.
@SOSConcern I totally agree about you. But the price of the house is only 150K and I have 50K for down payment.
So in my calculation, I would have to pay about $600 with 15yr plan and $ 300 with 30yr plan. It’s not really bad, is it?
@kelsmom Thank you for your advice! I will go to financial office tmrw :)))
@BrownParent even I’m employed as part time or I have a co-signer? Yeah, mortgage is the only concern of mine…
@thumper1 Well… the point is I don’t have money in my bank account. I have them as cash. I heard that if I have more than 100k in my account, they (FAFSA) will not give enough aid to me so I save them as a cash.
Hmmm, after I graduate, I plan to rent the house to other students in my college or I would go to graduate school.
Is it a bad idea? I don’t know… It’s getting more confusing 
It would be hard for you to show that you have the income to qualify for the mortgage. The lender will probably expect your monthly income to be about 4 times the monthly payment.
What is your monthly income?
Cash or in the bank makes no difference, it has to be reported on FAFSA just the same. If not, then you are receiving aid funds fraudulently. Be careful.
@thumper1 Sorry, my internet connection is bad so I didn’t see the recent question.
Yes, I’m currently receiving aid from both my college.
My college also gave me a scholarship, and they don’t use CSSProfile.
And I totally understand why you are confused.
I started my part time job since last august, so before then, I was an dependent.
My parents and I am the immigrants, moved here 2 years ago, so my dad’s income was only income of my family.
So that’s the reason why I needed an aid.
But I will change my status as independent this year with reporting tax.
My income isn’t sufficient so I wonder I could be approved for a mortgage.
If you need more infomation, let me know.