<p>How much does having a second home effect my EFC?</p>
<p>The equity in your second home is an asset you MUST list on your FAFSA. So if you have $100,000 in equity in a second home, that is $100,000 in assets.</p>
<p>Wouldn't you also have to report any income that you may be collecting for that property, assuming you are renting out the 2nd home as an source of income (of course)?</p>
<p>Perhaps, if you can afford a $100,000 second home, you can afford to pay for your child's education.</p>
<p>toadstool...there are many ways folks can "acquire" second homes and sometimes it has NOTHING to do with their income. Some folks inherit homes from relatives upon death. In some cases, the folks inheriting these home can NOT sell them, especially in this housing market. Many of these home DO have significant equity in them and unfortunately will "count" in the assets on the FAFSA. But that doesn't mean that the family has a LOT of money. You can inherit a second home and be unemployed or in the poor house. Some folks are having a better time selling these homes than others.</p>
<p>Another scenerio is the "second home" that is jointly inherited by family members. Sometimes the person can NOT sell THEIR SHARE of the asset because the others do not agree to doing so.</p>
<p>my parents are trying to sell the second house we have so we are not rich by any means. we have like no money but according to the EFC calculator, my EFC is around 50,000 which is impossible for my parents to pay. will the CSS profile let the school know that i need more aid?</p>
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<blockquote> <p>my EFC is around 50,000 which is impossible for my parents to pay. will the CSS profile let the school know that i need more aid?>></p> </blockquote>
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<p>First...if there is a special circumstance...YOU have to notify the school, not Profile. </p>
<p>Second...if your EFC is $50K, what would you expect someone to tell the college regardging your ability to pay??</p>
<p>Third...For the EFC to be significantly affected by the second home value, it would have to be worth a fortune. MOST of the EFC calculation is based on income.</p>
<p>Fourth...Profile will also consider equity in your primary residence.</p>
<p>housing is very expensive here. if I dont include the second house in the EFC calculator, my EFC is around $17000. my parents are pretty much in debt from buying this new house and not being able to sell our old one. we can't pay $50,000. if i want to tell the school my situation, do i write a letter, call them, or meet them in person? and how do i go about doing this?</p>
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<blockquote> <p>my parents are pretty much in debt from buying this new house and not being able to sell our old one. we can't pay $50,000.>></p> </blockquote>
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<p>You can try contacting the colleges to explain this situation, but I'm not sure you will get much help. The reality is buying a second home while you own a first home...is a choice. The financial aid calculations do not consider consumer debt...and owning a second home is considered consumer debt.</p>
<p>Are you just listing the equity (that is, reasonable selling price - what is owed on it)? Make sure of that.</p>
<p>Your parents should definitely contact the schools to ask how to request a special circumstances review. Some schools may take this into consideration.</p>
<p>As for the post regarding reporting the income from renting out a second home, that is done on the 1040 (income OR loss affects the AGI).</p>