I'm going to buy a home in July 2003, but I realize that my efforts to pay off my debts will leave me little for down payment and closing costs. So I checked into a program mentioned by Fannie Mae. It's called an Individual Development Account or IDA. The purpose of the IDA is to help people save money to achieve their goals while offering money management classes as part of the program. Here in Pittsburgh, the United Way sponsors such a program and this is how it works: After submitting the application, you fill out a contract stating what you intend to use the money for; in my case, a new home. Then you must open up a savings account with an affiliated bank and make regular contributions (They will monitor this). At the end of the program (either 13 or 24 months) they will issue a two-party check to both you and the recipient of the money; i.e. the mortgage company. This check will include the amount of your savings plus the amount that the IDA sponsor matches. In this case, either $1200 or $2000, which means that if I put in $2000, they will issue my mortgage company a check for $4000.00! As part of the agreement, you must take some free financial manangement classes, but for $2000 it is well worth it. There are also income requirements. For example, a family of four cannot earn more than $35,500. Not a problem in my case. I hope this info helps someone!
