the dhs individual development account strategy – home ownership family or individual...
TRANSCRIPT
![Page 1: The DHS Individual Development Account Strategy – Home Ownership Family or Individual ApplicationApproval 6-18 Month Savings Online Financial Education](https://reader036.vdocuments.mx/reader036/viewer/2022062417/551560ba55034691418b4abe/html5/thumbnails/1.jpg)
The DHS Individual Development
Account Strategy – Home Ownership
Family or Individual Application Approval
6-18 Month Savings
Online Financial Education
Home Purchase
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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
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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 Year’s
Federal Tax Returns– Including a Scored Credit
Report
• Submit Complete Application
• Scored Credit Report
• Last Year’s Federal Tax Returns
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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 Year’s Tax Return
• Have a Credit history that will enable them to purchase a home within 2 years.
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Individual Development Account Income Limits
Family Size Gross Annual Income*
1 $20,420
2 $27,380
3 $34,340
4 $41,300
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Submitting an Application
• Fax or Mail COMPLETED and SIGNED applications to: – (312) – AFI c/o Kevin Davy
401 S. Clinton 7th Floor
Chicago, Illinois 60607
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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.
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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.
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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
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The 9 Required Money Smart Training Modules
• Bank on Itan introduction to bank servicesBorrowing Basicsan introduction to creditMoney Mattershow to keep track of your moneyPay Yourself Firstwhy you should save, save, save
• To Your Credithow your credit history will affect your credit futureCharge It Righthow to make a credit card work for youLoan To Ownknow what you're borrowing before you buyYour Own Homewhat home ownership is all about
• www.fdic.gov/consumers/consumer/moneysmart/mscbi/mscbi.html
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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
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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
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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