OFR IDA Programs

1. OFR IDA Programs • What is an IDA? • Individual Development Account – is a match savings account that allows the participant to save their own money and receive a matching amount at the ratio set by that company.

2. Advantages of OFR IDAs • Creates a faster route to achieve a savings goal. • You are investing Your money into Your future/Your new home. • Not only are you getting 3 to 8 times what you are saving, but you also get up to 8 hours of financial or homebuyer education.

3. Down Payment IDA • The Down Payment IDA allows the participants to save $1,200 of their earned income and OFR will match that savings at 3 to 1 for a total match of $3,600. • This means that for every $1 you save, OFR matches that with $3. • So the total savings amount participants will receive, upon completing the program, is $4,800 for down payment assistance on a home. • Allowable purchases for DP IDA: taxes & insurance, closing costs and down payment on a home, manufactured home, modular home, or mobile home. Lease to purchase homes do not qualify for the Homeownership IDA.

4. Down Payment IDA Requirements • Must be a resident of Osage County or surrounding counties • 18 years or older • Participants must show proof of earned income from their last two months pay stubs. • Must qualify under OFR’s income guidelines • At the time of enrollment in the program, participants saving for a homeownership savings goal must have a debt-to-income ratio of up to 42%; permit OFR to perform a credit pull to obtain their credit score and report from TransUnion • Must complete OFR’s Homebuyer Education class • After completion of Homebuyer Education, the participant will need a 1st deposit of at least $100. • Length of savings term can be from 6 months to 2 years • Deposit amount for 6 month term - $200 per month • Deposit amount for 2 year term - $48 per month (after 1st deposit of $100) • If you are looking to save for a specific period of time, Ex: 10 months, we can tailor it to what you need.

5. Post-Secondary IDA • The Post-Secondary IDA allows the participants to save $300 of their earned income and OFR will match that savings at 8 to 1 for a total match of $2,400. • This means that for every $1 you save, OFR matches that with $8. • So the total savings amount participants will receive, upon completing the program, is $2,700 towards costs for college or Vocational school. • Allowable purchases for PS IDA: books, tuition, laptops, and education-related materials and equipment.

6. Post-Secondary IDA Requirements • Must be a resident of Osage County or surrounding counties • 18 years or older • Participants must show proof of earned income from their last two months pay stubs. • Must be a first-time college/Vocational student. • Must qualify under OFR’s income guidelines • Must complete OFR’s Financial Education classes • After completion of Financial Education classes, the participant will need a 1st deposit of at least $100. • At some point during the savings term, must present OFR with a letter of acceptance or class schedule from college or Vocational school. • Length of savings term can be from 6 months to 1 years • Deposit amount for 6 month term - $40 per month (after 1st deposit of $100) • Deposit amount for 1 year term - $19 per month (after 1st deposit of $100)

7. Where will my savings be kept and where? • OFR has partnered with Bank of Oklahoma, FDIC insured, in Bartlesville to hold your savings in Custodial savings accounts. • Questions for BOK can be answered by: • Jay Dyer, Branch Manager BOK Bartlesville Main, 918-335-5338 • What are Custodial savings account? • A Custodial Savings Account is a savings account that offers the benefit of a custodian to administer the account on the behalf of a beneficiary. • OFR would be the custodian and the participant is the beneficiary.

8. Will the match funds be kept in the same savings account as my savings? • The only money that will be in your savings account is your savings. • OFR has a separate match funds account at BOK. Can I have access to my savings? • If you need to use your savings for an emergency, you can withdraw it. With OFR being the custodian of the account, you will need to contact us to get permission to withdraw from your savings.

9. How will IDA funds be distributed when I complete the program? • For both IDAs, the funds will be sent directly to the college, institution, or business were you are attending school or going through a loan with. • We will need an invoice from the college, institution, or business for the amount needed.

10. Can you be dismissed from the program? • Yes, you can and here are the grounds for dismissal • Participant will notify OFR, by email, before missing a monthly payment. • After two missed payments, OFR will send a letter warning, by email, and regular mail, that participant will be terminated if participant misses one more monthly IDA deposit. • Participant will be terminated from the program after three missed payments. They will receive notification, by mail, from OFR if they are terminated from the program. • If a participant does not complete the program, they will receive their participant deposit money back but they will not receive IDA match funds. To withdraw their savings, participants will be given a letter from OFR to take to the bank. • If terminated from the program, former participants may reapply and will be evaluated on a case-by-case basis.

11. How long do I have to use the IDA funds? • Participants of both programs will have 1 year to make use their funds.

12. Home & Home Improvement Loans • OFR’s Homeownership Program is for those that are ready for homeownership. Up to $100,000 loan with at least a 3% DP in Osage County or surrounding counties (Kay, Noble, Pawnee, Tulsa, and Washington). • At least a 600 credit score • Homebuyer Education • Interest rate won’t go over 6% and lowest is 4% • This program has incentives that give the participant(s) a chance to decrease the IR 2%.