<p>I am planning on buying a home under my name next year because i am tired of paying rent. I plan on getting a 4 bedroom home and renting out the rooms to help pay for the mortgage, but i don't want to do this if it is going to affect my financial aid. Will buying the house, and renting it out affect how much money my family would get for financial aid?</p>
<p>It would also be my first home, i know that first home’s aren’t reported on fasfa, but i’m not sure if this is still the case with me going to rent it out.</p>
<p>Rent you receive will be considered income and will be considered in FA.</p>
<p>If you are renting rooms but the rooms do not have a separate entrance/cooking facilities/bathroom, you wouldn’t have to claim a portion of the house as an asset. However, you should be reporting the income on your tax return so it may increase your EFC.</p>
<p>the rooms would not have separate rooms, it is going to be a one family house but just renting the rooms to other college students. Would it be better to put the house under one of my parents name instead of under my name, or would it still be considered the same process</p>
<p>It depends. What is your current situation? Do you get any grants, or is your aid just loans? If you get grants, what is your EFC? How old are you?</p>
<p>i am a junior, i would be a senior next year. I do get a large amount of grants, my EFC is 71. I would be 21 for the time i planned on making the purchase.</p>
<p>Hmmm … you would only be using 2010 income for 2011-12, which would be your last year in school. So it wouldn’t matter. You can get the home in your name, because it’s already September 2010. Even if you get the house & roommates before the end of the year, you wouldn’t have earned much from rent by the end of December.</p>
<p>Where is the down payee t coming from. It would be unusual for someone with a 71 EFC to have the down payment and be given a mortgage.</p>
<p>Are you planning on taking out a mortgage? If so you will have mortgage payments, property taxes and upkeep to pay. When figuring your income, these expenses are subtracted from the rent money you receive. Usually, your costs in the first years of owning a rental will exceed your income. If that’s the case, you should not have any reportable income from the house.</p>
<p>I’ve received scholarships, and am currently working and just saving money. I have been saving for something like this since I was 18, and have about 10,000 to put down for a down payment. I would be buying the house August 2011, not now. Would I really be able to subtract mortgage payments, property taxes, and upkeep from the rent money i receive? because I am planning for the rent money to go directly to the mortgage so that would mean i wouldn’t be receiving any income</p>
<p>If you have $10,000 in your name and reported it on your FAFSA, your EFC should be at least $2K+, not 71…something doesn’t add up here…</p>
<p>received a 5 k scholarship this year, got back 3 k from school, and had 2 k. advice is what i’m looking for not criticism thanks.</p>
<p>…a little sensitive? Sorry, just doesn’t add up…EFC doesn’t reflect the money you have…further, scholarships generally go to the school to pay for college, not to be put in the bank to be used for a downpayment on real estate…oh well, good luck!</p>
<p>perilous, proceeds of student aid do not affect EFC.</p>
<p>Yes, but $10K of cash does!!!</p>
<p>No, sorry, but proceeds of student financial aid are specifically excluded from line 41 of FAFSA (cash/savings/checking). </p>
<p><a href=“http://studentaid.ed.gov/students/attachments/siteresources/CompletingtheFAFSA10-11.pdf[/url]”>http://studentaid.ed.gov/students/attachments/siteresources/CompletingtheFAFSA10-11.pdf</a></p>
<p>so would this affect my financial aid for the 2011-12 school year if i am going to be buying the house in August 2011. I am currently being paid 300 every two weeks and will be getting a 50 cent raise next semester, and plan on saving everything I have to focus on this. Would it be a good idea, or should i just keep renting an apartment which i feel is a waste of money because it isn’t building towards anything.</p>
<p>The family may be qualifying for auto 0, so the students assets/income may not be counting.</p>
<p>Just wondering. We all know that a primary home doesn’t count as an asset. But, when the family owns a home AND the dependent student owns a home, it would seem like both wouldn’t get excluded. Or would they both get excluded???</p>
<p>*perilous, proceeds of student aid do not affect EFC. *</p>
<p>I know that student aid doesn’t get counted as “income”. However, if it’s accumulating in a bank account and you have to list your savings on FAFSA, would it count then?</p>
<p>“Just wondering. We all know that a primary home doesn’t count as an asset. But, when the family owns a home AND the dependent student owns a home, it would seem like both wouldn’t get excluded. Or would they both get excluded???”</p>