<p>I don’t think it’s income at all. Fafsa only asks what assets you have at the time of filing, not including a home and not what came and went through the year. </p>
<p>As far as I know any money you clear from selling a home isn’t income and it isn’t even subject to capital gains, except when it exceeds like $250K (or $500K for a couple) - even then if you put it in another home you’re good. But I am going by some research I did today, not personal experience or expertise.</p>