To clarify:
All schools will treat as an asset money that is being saved for a down payment but that has not been spent for a home.
FAFSA-only schools will not consider home equity as an asset.
CSS Profile schools vary – some will not treat home equity as an asset, some will treat all of it as an asset, and some will “cap” the asset amount as a multiple (1 to 4 times) the amount of your income.