Presentation on theme: "The DHS Individual Development Account Strategy – Home Ownership Family or Individual ApplicationApproval 6-18 Month Savings Online Financial Education."— Presentation transcript:
The DHS Individual Development Account Strategy – Home Ownership Family or Individual ApplicationApproval 6-18 Month Savings Online Financial Education Home Purchase
Benefits of Individual Development Accounts Savings and Match Funds Can Only Be Used Towards the Purchase of a First Home Participants Can Save Up To $2,000 in their IDAs Participants Will Receive a $1 to $1 match - up to $2,000 Participants Can Drop Out And Have Their Savings Returned To Them, Without The Matching Funds In Some Cases, IDA Funds Can Be Combined With Other First Time HomeBuyer Downpayment Assistance Programs
Individual Development Account Application Procedure Download Application from the Internet or Obtain one from a DHS Office near you. Must Submit a Complete Program Application –Including Previous Years Federal Tax Returns –Including a Scored Credit Report Submit Complete Application Scored Credit Report Last Years Federal Tax Returns
Individual Development Account Guidelines Applicants Must: Have Adjusted Gross Income Less Than 200% of Poverty Level Be A Current Resident of the State of Illinois Have a Previous Years Tax Return Have a Credit history that will enable them to purchase a home within 2 years.
Individual Development Account Income Limits Family Size Gross Annual Income* 1$ 20,420 2 $27,380 3 $34,340 4 $41,300
Submitting an Application Fax or Mail COMPLETED and SIGNED applications to: –(312) –AFI c/o Kevin Davy 401 S. Clinton 7 th Floor Chicago, Illinois 60607
Securing DHS Application Approval DHS will Review All Applications that are Complete. DHS will contact via phone, email, or mail everyone who applies. Funding is limited, participants enrolled on a first come, first served basis. Qualified applicants will be put on a waitlist if all spots are full.
6 to 18 Months Savings Period Once enrolled, participants must save in their IDAs for at least 6 Months and no more than 24 months. All IDAs are held at National City Bank – DHS staff will help to set up the account. All participants must agree to have funds withdrawn from their existing bank account via electronic funds transfer.
Financial Education Component Required for all Program Participants Available Through The Federal Deposit Insurance Corporation Online Must Submit Certificates of Completion for Courses Mandated By DHS Courses offered by Financial Links for Low Income People Trainers Accepted As Compliance
The 9 Required Money Smart Training Modules Bank on It an introduction to bank services Borrowing Basics an introduction to credit Money Matters how to keep track of your money Pay Yourself First why you should save, save, saveBank on It Borrowing Basics Money Matters Pay Yourself First To Your Credit how your credit history will affect your credit future Charge It Right how to make a credit card work for you Loan To Own know what you're borrowing before you buy Your Own Home what home ownership is all aboutTo Your Credit Charge It Right Loan To Own Your Own Home www.fdic.gov/consumers/con sumer/moneysmart/mscbi/m scbi.html
Homeownership Education Required for all Program Participants purchasing Homes. Provided by Nonprofit Partners, HUD Certified Homeownership Providers and Online Vendors Must provide proof of completed training to program manager
Congratulations! You Are Now Ready for Home Purchase! Must Save For At Least 6 Months Cannot Save for More Than 18 Months Must Complete Home Purchase In Maximum of 24 Months
Special Thanks to Our Partners The Illinois Department of Human Services Partnership for Homeownership The Illinois Housing Development Authority The United States Department of Human Services, Administration for Children And Families Financial Links for Low Income People The Tax Counseling Project