We feature posts about our IDA clients. But do you really know what an IDA is? It stands for Individual Development Account.
According to Prosperity Now, a nonprofit dedicated to expanding economic opportunity for low-income families and communities in the United States, “Individual Development Accounts (IDAs) are special savings accounts that match the deposits of low and moderate income savers. For every dollar saved in an IDA, savers receive an additional dollar, or more, depending on the guidelines of each program…”
In fact, many times we see that the matches are not dollar for dollar, but 3:1 or even 4:1. That means that when you save $1.00 it may be added to by $3.00 or even $4.00. This is a great way to save up for a down payment!
IDA savings and match may be used for homeownership, postsecondary education, or to start a small business. In addition to earning match dollars, participants learn about budgeting, saving and receive additional training before purchasing an asset.
After they complete our programs, we like to ask participants what they thought of the process and how it helped them. A recent client, Michelle Vest, answered a few questions for us.
What experiences did you have with Lacasa that greatly impacted you?
“Working on building my credit helped a lot,” Michelle said. “The homebuyer class also had a whole lot of good information, right when I needed it”.
Would you have been able to achieve the goal of homeownership on your own?
Michelle answered, “It would have been hard to push myself to do this. Once I made the decision to become a homeowner, it focused everything I did.”
So many of the people we see at Lacasa need only to be pointed in the right direction, or to have a little more information, before they are able to take the reins and reach their goals. We are happy to be able to offer that little lift they need.