How would buying a house in New Haven affect my financial aid package?
This relates to how home equity is taken into consideration in calculating resources. Here’s how it works: Single Family House: If income is less than $100.000, home equity for a single-family house is not considered in calculating a student’s (or parents’) contribution from assets. Multi-Family House: Because a multi-family house is defined as a business, home equity is considered, regardless of income. It is considered an asset because rent is collected, and the student (or the student’s parents) must include the rent as income on tax returns.
This relates to how home equity is taken into consideration in calculating resources. Here’s how it works: Single Family House: If adjusted gross income is less than $125,000, home equity for a single-family house is not considered in calculating a student’s (or parents’) contribution from assets. Multi-Family House: Because a multi-family house is defined as a business, home equity is considered, regardless of income. It is considered an asset because rent is collected, and the student (or the student’s parents) must include the rent as income on tax returns.
