What is an Individual Development Account
and how can it help you?
Individual Development Accounts (IDAS) are
matched savings accounts that enable low-income families to
save, build assets, and enter the financial mainstream. IDAs
reward the monthly savings of working families who are
building towards purchasing an asset - most commonly buying
their first home, paying for post-secondary education, or
starting a small business.
El Paso Affordable Housing CUSO’s (AHCUSO)
IDA Program, along with other services, make it possible for
low-income families to achieve the American Dream of home
ownership.
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How Does AHCUSO’s IDA Work?
A special IDA savings account is opened at
GECU with a $20 deposit. Thereafter, the participant
deposits a minimum of $25 per month as long as the account
remains open.
If the participant kept saving every
month, the participant is eligible for a 2 -to-1 savings
match up to $2,000 six months after opening the IDA account,
This means that if the participant saves the $2,000, his/her
savings are matched 2 to1. Up to an additional $4,000 will
be provided for down payment and closing costs assistance.,
thereby providing participants a total of $6,000 in
assistance towards the purchase of their first home. The
match is funded by the U.S. Dept of Health and Human
Services and an equal amount by the credit unions and the
City of El Paso.
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Who Is Eligible to Participate?
The EPAHCUSO IDA Program is open to
Individuals who apply and meet the following criteria:
- Are citizens and/or legal residents of the United
States
- Currently reside within the city limits of El Paso,
Texas and seek to purchase a home within the city
limits.
- Meet income and personal asset guidelines
- Currently be or become a member of GECU
- Complete AHCUSO’s financial education and first time
homebuyers course
- Must enroll in El Paso Saves, a local social marketing
campaign that allows area residents to establish and
achieve savings goal s that will develop assets for the
family and assist in create a savings
discipline..
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What Do I Need to Take When I Apply?
The EPAHCUSO requires each applicant to
provide, at a minimum, the following items:
- Income Tax return for the previous tax year
- Driver’s License
- Social Security Card
- Certificate of Completion of EPAHCUSO’s Financial
Education/First Time Homebuyer’s Course
- Pay Stubs for the last 3 months
- A one-time $15 non-refundable processing
fee
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What Is Required of Me Once I Become an
IDA Participant?
- IDA participants are required to:
- Opening an IDA savings account with GECU
- Make minimum monthly savings deposits of at least $25
and dedicate a portion of annual income tax refund, if
necessary, to reach their savings goal
- Save in the program for a minimum period of 6
months
- Do not miss more than three deposits within the
savings period
- Attend a financial education/homebuyer education
course
- Attend pre-purchase counseling 60 days prior to
closing of home purchase
- Attend post-purchase counseling 30 days after closing
on the home purchase
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Can I Withdraw Money From My IDA
Account?
Because IDAs are intended to purchase a
home, withdrawals are not allowed unless there is a bonafide
emergency that must be discussed with AHCUSO prior to making
any withdrawal. In addition, if a participant makes an
unauthorized, non-emergency withdrawal, he/she will be
automatically withdrawn from the program and their IDA
account will be closed.
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