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Individual Development Accounts

Individual Development Account (IDA)

If you are saving for your first home and you live in Maricopa or Pinal County, Newtown might be able to help you obtain extra money through our IDA Program. This special savings account earns a four-to-one matching grant from the Federal Home Loan Bank of San Francisco, so a homebuyer who saves the maximum of $5,500 would receive an additional maximum $22,000 to use toward a down payment and reasonable closing costs.

Eligibility requirements:

  • Must be first-time homebuyer or must not have owned a home in the past three years.
  • Gross household income must be less than 78% of the HUD Area Median Income. (Click here for the most current income limits)
     
  • Must enroll in Newtown's Homebuyer Assistance Program, which includes an interview with a Housing Counselor to verify eligibility.
     
  • Must obtain a fixed-rate loan from a participating lender, where points and lender fees do not exceed 6% of the loan amount.
     
  • Must open an Individual Development Account (IDA) savings account with a participating bank and make monthly deposits of at least $20 per month from earned income for a minimum of 10 months, and continuing until mortgage-ready.
     
  • Must use only earned income; gifts are not eligible for matching funds.
     
  • Must complete a home purchase within five years and own the home as your primary residence for five years. If the home is sold or rented before the end of the five-year period, the IDA match funds must be repaid on a pro-rated basis.

Fees: $40 non-refundable application fee due with application, plus $500 administration fee at close of escrow.

Application Process

Complete an application form and submit it to Newtown. Please answer all of the questions and provide all of the information requested. We will review your application and contact you to schedule a meeting with a Newtown Housing Counselor. You can complete and submit the form electronically or you may print it and submit it by mail. Important: You must download and save the form before you fill it out.

Application Form - click here

Pay Application Fee - click here