According to Kiplinger, Villanova awards merit scholarships to about 12% of enrolled students. The average award is about $16K (per Kiplinger and the Villanova 2017 CDS); the maximum goes all the way up to a full ride (per Villanova’s site). So, it may be affordable to some parents who want to pay no more than $20K … even assuming they don’t qualify for need based aid. Scholarships/grants typically are not the only components of an FA package.
Merit money is limited just about everywhere. Would a school like Villanova offer enough to make the cost affordable to someone with the OP’s qualifications (including URM status, 4.0 UW, and maybe an improved ACT score)? Maybe not. But, it might be a realistic reach (especially if scores improve, and if you think you can count on enough “self help” or outside scholarship money to close any gap between Villanova’s net price and your family’s $40K budget).