The DHS Individual Development

Account Strategy – Home Ownership

Family or Individual Application Approval

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 Year’s

Federal Tax Returns– Including a Scored Credit

Report

• Submit Complete Application

• Scored Credit Report

• Last Year’s 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 Year’s 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 7th 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• All participants must agree to have funds withdrawn from their existing bank account via electronic funds transfer.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 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

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