<p>Can someone who is familiar or know about the rules and guidelines of financial aid (FAFSA) give me ideas about how much can affect our family if we decide to buy a second home? Thanks.</p>
<p>It’s possible the effect of a 2nd home will be zero If you take current assets and put them into a vacation home, you’re subtracting that amount from investments and putting them into real estate, so the net change in total assets is zero, at least until the 2nd house starts appreciating.</p>
<p>For example, if you have $100K in cash, put it into a 2nd home that costs $200K, your net equity is still $100K which would be reportable as an asset on FAFSA.</p>
<p>It can be a disadvantage if the home appreciates in value, because you are required to report the net worth of the home (worth minus debt). If you are getting the home at a really great price (for example, if someone needs to get rid of it because they are at risk of foreclosure), it may be worth more than the money you put into it right off the bat.</p>