Saving for a Home, $10 at a Time
Michelle Simmons had one goal: to buy her own home. As a single mother of two, though, it was no easy task. Due in part to an Individual Development Account (IDA), she achieved her goal.
IDAs are matched savings accounts for low-income people for the purpose of purchasing assets, such as a home. Michelle joined the Family Savings Account (FSA) program through the Women’s Opportunities Resource Center (WORC) – a CFED partner agency in Montgomery County, Pennsylvania.
She received housing counseling from the FSA partners and saved more than $1,000 to be matched by the IDA, using the total as a downpayment on her new home. In addition, she worked with Montgomery County’s Habitat for Humanity to secure a $47,980 interest-free mortgage.
Pennsylvania is one of 27 states with a state Individual Development Account (IDA) program that matches accountholder savings with state money. Accountholders must save at least $10 per week and are required to attend four financial management classes. In return, their deposits are matched dollar for dollar.
Partner agencies like WORC recruit accountholders, provide counseling services and host financial workshops on a broad range of topics such as money management, credit repair and taxes.
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