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mdmtnwmn

Anybdy built with kid in college?

mdmtnwmn
14 years ago

Has anybody sold their 'primary residence' and plowed the equity back into building a new place while their kid was in college?

If so, for FAFSA and Profile schools, is there any allowed way to protect the $ from the sale from being treated as a cash asset while construction was underway? Would an account set up for construction draw do it? What if time from sale to time to closing on the new construction extended into the new aid year?

Capital gains is not a issue. But, if lucky, the house might go for more than "todays value', so I could see where they might look at the difference as a asset, so be it if so.

If you got it all done and closed--sale, build, close-- before re-applying for the next year (FAFSA and Profile), was efc refigured with the new home value and equity?

Finally, another twist and question--if the land was bought out of savings a few years before the first aid year (so treated as a second property and asset for the first aid year) and the old primary residence was sold and new house built on the bought land during year one or two (or both), did the equity in the land get treated as part of the new 'primary residence' value after construction closing or still separately as a asset? Wondering about affect on both fed and profile efc....

Thanks for any help figuring out if we can do this without wrecking school plans.

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