![](/images/spacer.gif) |
10 Things Your Faith Community Can Do To Encourage Homeownership
3. Encourage Families to Save for a Downpayment
Many families can't take advantage of special mortgage products,
even those intended for low and moderate-income families or new
homeowners, because they don't have even the minimum amount for
a down payment and closing costs. Faith communities can educate
families on the importance of savings, develop programs that encourage
saving on a regular basis, even establish partnerships with financial
institutions that make regular saving easy. There are a number of
tools and curriculum available to encourgage savings, including
the Individual Development Account (IDA). HUD's Faith-Based Office
can give you additonal information on IDA's and other tools.
- The Federal Government offers grants for programs to help organizations
set up savings programs that offer matching dollars to the savings
of eligible participants. The Individual Development Account (IDA)
program requires mandatory budgeting and financial counseling
participation to maintain program eligibility for the matching
dollars. Programs across the country have had great success using
IDAs to help families and individuals realize their dreams of
homeownership. Go to http://faithtofinnce.org or http://www.idanetwork.org/
- Faith organizations and congregations can raise funds to create
their own IDA matching funds. They can also recruit participants
for existing programs and support them through the process. Some
examples can be found at http://www.BeyondHousing.org; http://www.interfaithinc.org; http://www.mnpartnership.org/.
- If the IDA program is not possible, explore collaborating with
local banks and credit unions to set up free savings accounts
for your program participants. This idea could easily be coordinated
through a Homebuyers or Savers Club activity. See http://natfed.org for some ideas.
|