<p>I am filling out the fafsa and I have a question on what number to put for assets. My family is low income and we purchased a house which we live in now and still own our old house. We are in the process of selling it and it is on the market. My parents had to take out loans and take out money from a self employed small business account of my dad to pay for the house we live in. That number of debt is 120,000. The only reason we have the other house is because it hasn't sold yet. It's value or quick sale price is 143,200. Once it is sold the money would be paid to fulfill this debt immediately and would not be put into any savings or checking accounts. Do I need to put 143,200 for assets even if we won't have the house within a couple months at the most? I'm just trying to make sure I maximize my aid given and I don't want this to jeopardize my aid package. This is very important because FA is sort of my deciding factor on my college decision. I really would like to go to NY if FA is close to met. I have a EFC of 0 and will have 4 people in college including myself in 2014-2015. This number is a huuuuge number compared to income and other amounts but it won't be an asset in the future. For now I have put assets as 23,200 because that is net worth minus debt owed. Which makes sense because that is what would be left after debt owed is fulfilled and technically the value of the house to us.</p>
<p>I hope I made this followable for you guys. Thanks in advance!</p>
<p>Yes, you have to put down $143,200 if that is the net value of that house, and if your family owns it the day you sign the FAFSA unless you qualify for an auto zero EFC or simplified needs that ignores asset. It is an asset owned. And the proceeds upon selling the house may be an issue next year, even more of hit, since fin aid numbers are much more income driven. </p>
<p>If your parents can get take a loan out against the house in the amount of $143200, then the value of the house is zero, but it has to specifically have the house as collateral, like a mortgage. That way the sale is a net zero profit too, I think. You cannot take an asset and put it against a debt on the FAFSA to reduce the value of the asset, unless the debt is secured legally by the asset as in in a mortgage. You have $100K in the bank, and owe $100K in credit card debt, too bad. The credit card debt doesn’t enter the picture, but the $100K is listed as assets. An exception on FAFSA is the value of your primary residence which is not counted. So if you own it outright and it’s worth a million, it still doesn’t count on FAFSA. But for PROFILE, which a lot of school also want filled out, it would be reported. </p>
<p>Most people, like nearly everybody with a zero EFC, do not have a house that can be sold for $143200 even when they have debts of that amount or more. The business loans have nothing to do with the house. </p>
<p>Most schools that give full need also use PROFILE as well as FAFSA, and how they treat this is likely to be even harsher. You need to do some numbers, like NPCS, and see what the schools you have in mind may offer you. </p>
<p>Is there a mortgage on the first house?</p>