homebuers
 

Matched Savings Accounts  

Program unavailable at this time


Individual Development Account (IDA)

Asset building is an approach to overcoming poverty that emphasizes the value of enabling individuals and families to learn about and use sound family budgeting and money management practices, to address financial issues, and to plan for long-term success. Especially when combined with other support services, the asset building approach helps families set goals and progress toward financial stability.

Helping You Open The Door To Homeownership

NeighborWorks Montana's IDA program is a 4:1 match savings account. You, as a participant, save up to $1,000 and receive a match of up to $4,000. This could give you a total of $5,000 for down payment and closing cost assistance towards the purchase of your first home.

How the IDA Works

The purpose of the program is two-fold: To help you establish savings and budgeting habits in preparation for homeownership, and to form a relationship with a lending institution.

The process to homeownership through an IDA:

  1. Apply and enroll in the IDA Program through NeighborWorks Montana. (Application are not being accepted at this time as the program is full).
  2. Open an IDA savings account with at least $25 at a financial institution approved by NeighborWorks Montana.
  3. Complete a financial education course either online or in-person at locations around the state.
  4. Complete homebuyer education classes through an approved provider. Find a network provider near you.
  5. Make monthly deposits of at least $25 to your IDA savings account.
  6. Contact IDA coordinator monthly for goal assessment.
  7. After reaching your goal and saving for a minimum of 6 months, continue making deposits while planning for your home purchase.
  8. Qualify and receive a first mortgage at a lender of your choice. 
  9. Your savings, up to $1,000, will be matched and provided at the closing of your home purchase.

Requirements for the IDA

To participate in the program, you must:
  1. Be a first time homebuyer, (not having owned a home within the last three years).
  2. Have some regular source of earned income.
  3. Make consistent monthly deposits into the savings account.
  4. Save for at least 6 months in the IDA program.
  5. Participate in Homebuyer Education and Financial Fitness classes.
  6. Must have net worth less than $10,000 excluding one vehicle.
    To qualify for the IDA program, the total household income must be less than or equal to the maximum income for your family size, listed below.

Income Guidelines (as of February 2017)

Family Size  1 2 3 4 5 6 7 8 
 Maximum Income  $24,120  $32,480  $40,840  $49,200  $57,560  $65,920  $74,280  $82,640