hello, my husband and I are in the market to buy a new home.
I am currently in college and usually get pell grants that pay for my semester.
Will owning a home affect the grants?. I don’t work only go to school fulltime , we are 22 and 25 years old and have a child.
Your primary residence is not we eh mentioned on the FAFSA form. It is your FAFSA EFC that determines your Pell eligibility.
So…presuming your FAFSA EFC doesn’t rise…your Pell should remain the same.
Where is the money coming from for the house downpayment?
^ Her husband most likely works full time.
Were you already married when you completed your last FAFSA? Was your husband’s income included on that FAFSA? If not…your husband’s income is what would affect your FAFSA EFC, not your house purchase.
And…if any money is being paid “on your behalf” for the 2015 tax year, this would have to be reported on the FAFSA for the 2016-2017 school year. In other words, if someone else helps pay for your house, that money would need to be reported.
Money for downpayment is from my husband. Yes I put that I am married when I applied for fafsa every year since (2012, we got married). My husband works full time.
Ok. So the downpayment money was included as an asset on FAFSA. When you buy the house with that money your FAFSA assets decrease.
No. Their FAFSA assets won’t decrease. Their assets will be just transformed from liquid form to solid form. But the value remains the same. Unless their house value drops drastically after the purchase.
The FAFSA countable asset - cash will be converted into the non-countable asset - value of your home. So from the EFC calculation standpoint, your countable asset will indeed be decreased.
Not true. For fafsa purposes, the primary residence for these independent students is NOT listed as an asset on the FAFSA. But money in their bank account would be.
So if they use money in the bank for the down payment, this will reduce their assets.
The primary residence house equity will NOT be considered an asset for FAFSA purposes.