Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Unless your state has some oddball law (cannot presume) yes you can use 529 money to pay for the mortgage of a house YOU bought for your child to live in during college. The amount cannot exceed on campus house cost though.

You will have to claim the amount you pull from the 529 to pay for the mortgage as rental income as if you rented the house out. This is an entirely different matter because not 100% of the money is true income, you do have expenses and it would be treated as if you rented it to a stranger and not family.

Print the post  


Paying For School Guide
Trying to Tackle Tuition? The Motley Fool's Guide to Paying for School will help you fight those rising education costs.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.