<p>I plan on getting a decent sized settlement from a accident I was in last year and I want to use it as a down payment on a house if I take out a mortgage will it effect my finical aid eligibility ? And if it doesn't now will it effect it when it's payed off In a few years? </p>
<p>Another note if my parents were to buy a house and put it into my name bc I have a really high credit score would that effect my eligibility for financial aid they would have a mortgage as well but they have awful credit so it would be better for them in my name? </p>
<p>I was reading that if your a non dependent it doesn't count so if I bought the house and lived on my own the house wouldn't effect my financial aid status? </p>
<p>I'm only 22 so does that effect anything with being a dependent ?</p>
<p>As long as you are under 24, unmarried, not fully supporting your child, and not serving in the military, you MUST file as a dependent for financial aid purposes.</p>
<p>If you are receiving a decent sized settlement from an accident, why are you not looking at it as a means of paying for your education??? Financial aid is for people who NEED money; not for those who have it but choose not to spend it.</p>
None of the financial aid formulas count debt in either a positive or negative way; that is, having a loan will neither increase nor decrease the financial aid you qualify for.</p>
<p>The Federal formulas (FAFSA) do not count house equity, so you could potentially shield a settlement by buying a house. However, now you have a mortgage to pay, which could/would significantly impact your ability to pay for college. (BTW, it’s not just the mortgage - you have to pay property taxes, homeowners insurance, maintenance, etc. Houses are a money pit.)</p>
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Unfortunately, mortgages do not work this way. The person who legally owns the house is the only one who would be able to get a mortgage on that house. Since the house would be in your name, that means you would have to have the mortgage, not your parents.</p>
<p>Since your name would be on the mortgage <em>you</em> would be legally responsible to pay it back, even if your parents promise to pay it; do you really want this debt hanging over your head at your age? If your parents’ awful credit rating is due to poor money management, this is unlikely to magically change upon buying a house. So the odds are you would ultimately be responsible for this debt.</p>
<p>You could possibly buy a house jointly with your parents, but since you likely have very little income, your credit rating will not have a big impact on the ability to get a mortgage.</p>