- We currently own undeveloped land. How does that affect what is entered on the FAFSA form? It's not investment real estate but does FAFSA look at it that way?
- We plan to build a home on that land in the near future. During the possible 12 month construction period, we obviously will not be living there so it's not our primary residence yet. It's not investment real estate as we'll be moving in when construction is done. How does FAFSA look at that?
Your undeveloped land is considered a secondary piece of real estate that you own. The equity in that property IS an asset for financial aid purposes. That is how the FAFSA looks at this.
It doesn’t matter that you plan to build in the future. Or that you don’t consider this an investment. It IS real estate that is not your primary residence. You are required to list the equity on your financial aid forms.
As of the day that FAFSA is completed, the market value of the undeveloped land, less any amount you owe that is secured by that land, needs to be reported as a parent asset under FAFSA question 91:
As of today, what is the net worth of your parents’ investments, including real estate? Don’t include the home in which your parents live.