<p>Hi I'm the son of a single mom, who's income is below 40,000. However, we own a house worth $500,000. Thus my question is, will I be able to get financial aid because of my family's income or not because we own a large equity in our house. By the way, we have no mortgage which is why I am asking. Thanks.</p>
<p>What schools are on your list? Schools that use FAFSA only do not ask for primary home equity to be on the assets. Unfortunately, most of such schools do not guarantee to meet full need. You have to be at the top of the applicant pool to have a good chance of getting full need or close to it met. </p>
<p>The schools that tend to meet full need also ask for a PROFILE and they will ask for the home equity value. Many do cap that value to no more than 2.4 tiimes income, which in your case would be about $96000. I don’t remember the asset allowance for a single parent, but it iis less than half of that of married ones if I remember correcltly. With no other assets and assuming a $10K prtection, I would say the family contribution increase due that home is about $5000. Some schools will take the full value which would make the contribution $25K or so. Some willl use 1.2X income which brings it down to $2500.</p>
<p>All of this could be moot if you are not looking at schools that meet full need. Then it all comes down to how much a school decides to give you out of their funds.</p>