Grandparent lives in 2nd home

corkigabu
Fri, 13 Nov 2020 17:01:30 +0000

First of all, I want to acknowledge that our family is very fortunate. We have a higher family income and our child is an excellent student who may have a shot at a top-tier academic institution. In our case, we have two houses, our primary residence and our original starter home nearby. We are still paying mortgage payments on both. We used to use our starter house as a rental property, but after my mother’s multiple health problems, she now lives there. She lives only on social security and has no savings, so we make all the related payments - mortgage, gas, utilities, internet/phone, repairs. We probably spend $20K/year on those. We are grateful to be able to do this, but I don’t know how we will continue to pay two mortgages, cover all her and our bills, and pay $48K EFC. We are not comfortable transferring ownership of the house to my mother. If we do take out an equity loan on her house to pay for college will it count to reduce the asset value? Do schools ever take into account that some of our income is wrapped up in grandparent care? Any other tips on how to handle this unusual situation?