FAFSA investment section - Do I include my primary home with mortgage in net worth calculation?

You're absolutely right - you do NOT include your primary residence (the home you live in) in the investments section, and you also do NOT include the mortgage on that home in the debts calculation. The FAFSA specifically excludes the primary residence and any debt associated with it from the investment calculations. You only need to report other real estate you may own (rental properties, vacation homes, etc.) along with their associated mortgages or debts when calculating net worth of investments.

ya dont include where u live on fafsa... i made that mistake and had to fix my whole application lol. only put investment properties like if u own a rental house or something

This is a common point of confusion. To clarify: your primary residence (the home you live in) is excluded from the FAFSA calculations completely - both the value of the home AND the mortgage attached to it. Here's what to include as investments: 1. Real estate other than your primary residence (vacation homes, rental properties) 2. Trust funds, UGMA/UTMA accounts (if you're the owner, not the beneficiary) 3. Money market funds, mutual funds, stocks, bonds, CDs 4. 529 college savings plans (report as parent investment, not student asset) Here's what NOT to include as investments: 1. Your primary residence (the home you live in) 2. The mortgage on your primary residence 3. The value of life insurance policies 4. Retirement plans (401k, pension plans, annuities, IRAs) Hope this helps clarify the FAFSA investment section!

Yes, that's exactly right! For your vacation cabin, you would report the net worth of $60,000 ($125,000 value minus the $65,000 mortgage) in the investments section. That's a perfect example of how to calculate the net worth of investment properties.

my financial aid advisor told me the same thing. primary home = not included anywhere on fafsa. only other properties count. good luck with your daughter's application!!

I spent HOURS trying to reach someone at Federal Student Aid to clarify this exact same question last month! Kept getting disconnected or waiting forever. Finally I used Claimyr (claimyr.com) to get through to an actual FAFSA agent who confirmed everything people are saying here - primary residence and its mortgage are completely excluded from the calculation. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ and it saved me so much frustration. The agent I spoke with was super helpful explaining all the asset reporting requirements.

It's definitely legit - they just help you get through the phone system faster. You're still talking directly to the actual Federal Student Aid representatives. I was desperate after trying for 3 days to get through on my own with no luck. Worth it for my sanity alone!

THEY MAKE THIS SO FREAKING CONFUSING ON PURPOSE!!! I swear it's to trip people up so they can deny aid. Last year I accidentally included my house value and got almost ZERO aid for my son. Then had to go through this whole verification and correction nightmare that took MONTHS to fix. By then most grant money was gone!!!! Always remember: PRIMARY HOME = NOT INCLUDED ANYWHERE!!

We only got about half of what he should have received originally. The school said most of their grant funds were already allocated by the time our correction went through. Complete disaster. Make sure you double check EVERYTHING before submitting.

When I was doing my daughter's FAFSA last week, I was thinking about this too! I actually went back and checked our old tax forms from last year to see what we did then. Definitely don't include your primary home - that's what we did both times and her SAI calculation seemed correct.

One additional clarification that might help others reading this thread: if you have a second mortgage or home equity loan on your primary residence that you used for purposes OTHER THAN buying/improving that home (like paying for college or starting a business), that portion IS reported as debt on the FAFSA. This is a small technical detail but important for some families with complex financial situations.

I went through this same confusion last year! Just wanted to add one more reassurance - you're interpreting it correctly. Your primary residence and its mortgage are completely excluded from FAFSA calculations. The key phrase is "the home the parent lives in" - that's your primary residence, period. Don't overthink it! I made the mistake of second-guessing myself and almost included my home value, but thankfully caught it before submitting. The FAFSA language is definitely confusing, but everyone here has given you the right guidance. Good luck with your daughter's application!

I just went through this exact same situation with my son's FAFSA this year! The wording is so confusing, but you've got it exactly right. Your primary home and mortgage are completely excluded - don't include either one anywhere on the form. I called the Federal Student Aid helpline to double-check because I was so worried about making a mistake, and they confirmed that the primary residence exclusion is absolute. The only real estate you report is investment properties like rental homes or vacation properties. You're being smart to ask and verify before submitting - that attention to detail will serve you well throughout this process!

As someone who just completed the FAFSA for my twin daughters last month, I can absolutely confirm what everyone is saying here - your primary residence is completely excluded from the FAFSA calculations! Don't include your home value OR your mortgage anywhere on the form. I actually printed out the FAFSA instructions and highlighted that section because I was so paranoid about making a mistake. The exact wording is "Do not include the home in which your parents live" - it's that simple. Your $245,000 mortgage stays off the form entirely. The only time you'd report real estate is if you owned rental properties or vacation homes. You're asking all the right questions, and it sounds like you have a good handle on this now. Best of luck with your daughter's financial aid!

I just want to echo what everyone else has said - you're absolutely right to exclude your primary home and mortgage from the FAFSA! I made this same mistake on my first attempt and had to go back and correct it. The FAFSA instructions could definitely be clearer, but the rule is simple: if you live in it as your primary residence, it doesn't get reported anywhere on the form. I've been helping other parents in our school district with FAFSA questions, and this is probably the #1 source of confusion I see. You're being smart to double-check before submitting. Your daughter is lucky to have a parent who's being so careful with this process!

I just completed my FAFSA last week and had this exact same confusion! You're absolutely correct - your primary residence and its mortgage are completely excluded from the FAFSA. I spent way too much time worrying about this, but the rule is actually straightforward: if it's the home you live in, it doesn't go anywhere on the form. The investment section is only for other real estate like rental properties or vacation homes. I even double-checked with my daughter's financial aid office at her college, and they confirmed that primary residence exclusion is total - no home value, no mortgage debt. Don't stress about it - you've got the right understanding!

I'm new to the FAFSA process and this thread has been incredibly helpful! I was having the exact same confusion about whether to include my primary residence. Reading through everyone's experiences really clarifies that the rule is simple: primary home and its mortgage stay completely off the FAFSA form. It's reassuring to see so many parents who've successfully navigated this same confusing section. The wording in the FAFSA instructions definitely could be clearer - I can see why this trips up so many families. Thank you all for sharing your knowledge and helping newcomers like me avoid costly mistakes!

I'm also new to the FAFSA process and this discussion has been a lifesaver! I was staring at that investment section for hours, completely paralyzed by the same confusion about my primary residence. The wording really is misleading - when it says "real estate" in the investment section, my first instinct was to include my house since it's technically real estate. But reading everyone's experiences here makes it crystal clear: if you live in it as your primary home, it stays off the FAFSA entirely - no home value, no mortgage debt, nothing. I'm so grateful for this community where experienced parents share their knowledge to help us newcomers avoid these pitfalls. Time to finally submit this application with confidence!

I'm also new to this whole FAFSA process and this thread has been absolutely invaluable! I was getting so overwhelmed trying to figure out the investment section. Like many others here, my first instinct was to include my primary home since it's technically "real estate," but everyone's shared experiences make it crystal clear that primary residence = completely excluded from FAFSA calculations. No home value, no mortgage - nothing goes on the form if it's where you live. It's honestly frustrating how confusing the FAFSA wording is on this point, but I'm so grateful for this community where experienced parents share their knowledge. Reading about people who made mistakes and had to go through corrections really drives home how important it is to get this right the first time. Thank you all for helping newcomers like me navigate this maze with confidence!

As someone who just went through this exact same confusion with my son's FAFSA application, I can absolutely confirm what everyone here is saying - you're interpreting the rules correctly! Your primary residence and its mortgage are completely excluded from the FAFSA calculations. Don't include your home value OR your $245,000 mortgage anywhere on the form. I actually called the Federal Student Aid helpline twice because I was so paranoid about making a mistake, and both representatives confirmed the same thing: if it's the home you live in as your primary residence, it stays off the FAFSA entirely. The investment section is only for additional real estate like rental properties or vacation homes. The FAFSA wording is definitely confusing on this point - when they say "real estate" in the investment section, it's natural to think about your house! But the primary residence exclusion is absolute. You're being smart to double-check before submitting, and it sounds like you have a clear understanding now. Best of luck with your daughter's financial aid application!

I'm also new to the FAFSA process and this thread has been incredibly reassuring! I was having the exact same confusion about my primary residence. The way the investment section is worded really does make it seem like you should include all real estate, but everyone's experiences here confirm that the primary residence exclusion is absolute - no home value, no mortgage debt, nothing related to where you actually live goes on the FAFSA. What really helped me was seeing how many parents mentioned making corrections after initially including their primary home by mistake, and the headaches that caused with delayed aid processing. It's clear that getting this right the first time is crucial. Thank you to everyone who shared their experiences - it's amazing how this one confusing section can cause so much stress, but this community support makes all the difference for newcomers like me who are navigating this maze for the first time!