Individual Development Accounts (IDA) are matched savings accounts designed
to help low-income and low-wealth families accumulate a few thousand dollars
for homeownership. Low income renters save monthly and their savings will be
matched quarterly by Capital Federal Savings. This match will then be
available to help them with the purchase of their home.
Right now, tenants in TTH, Inc. state funded houses pay very low subsidized
rent without insurance and taxes. These renters will need to prepare for a
mortgage increase, closing costs, and insurance and taxes if they want to
exercise their purchase option at the end of their five year lease. TTH,
Inc. and Capitol Federal Savings want to empower these tenants to become
successful homeowners with the TTH True Blue IDA Program.
In 2005, a family that had contributed to their IDA Account for several
years was able to build a $2500 down payment that helped them purchase their
rental and made their dream of homeownership come true.
- Eligibility—Program is available to
TTH, Inc. renters who have a purchase option at the end of their rental term
(right now 4 families).
- Education—Families will receive
initial program overview. Those interested in participation will be eligible
for further mortgage counseling and guidance throughout their rental
occupancy to prepare them for home ownership responsibilities and a higher
mortgage payment that includes insurance and taxes.
- Account Set-Up—Participant will be
owner of individual account, but a transaction hold will require written
consent from participant and TTH before withdrawals can be made. Thus
participants will have access to their money and be able to make withdrawals
for emergencies.
- 1 to 1 Match—Participants will
receive one dollar for every dollar in their account once every quarter.
These matching funds will only be available for withdrawal at the end of
their rental occupancy where they can put it towards their purchase option.
