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.
- First-time homebuyers or haven't owned a home in the past three years.
- Gross household income must be less than 78% of the HUD Area Median Income. For 2019, that means $39,858 for one person, $45,552 for a couple, $51,246 for a family of three, $56,862 for a family of four; $61,464 for a family of five; and $65,988 for a family of six.
- 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 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.
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 if we have questions and to schedule a meeting with a Newtown Housing Counselor. You can complete and submit the form electronically. Important - before you fill out the form you must download it and save it first.