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The DHS Individual Development Account Strategy – Home Ownership

The DHS Individual Development Account Strategy – Home Ownership. Application. Approval. Family or Individual. Online Financial Education. Home Purchase. 6-18 Month Savings. Benefits of Individual Development Accounts.

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The DHS Individual Development Account Strategy – Home Ownership

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  1. The DHS Individual DevelopmentAccount Strategy– Home Ownership Application Approval Family or Individual Online Financial Education Home Purchase 6-18 Month Savings

  2. 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

  3. 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

  4. 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.

  5. Individual Development Account Income Limits • Family Size Gross Annual Income* • 1 $20,420 • $27,380 • $34,340 • $41,300

  6. 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

  7. 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.

  8. 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.

  9. 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

  10. 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 The 9 Required Money Smart Training Modules

  11. 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

  12. 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

  13. 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 Special Thanks to Our Partners

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