Did you know you can use your Individual Development Account (IDA) to buy a house?

Have you ever heard of an Individual Development Account to buy a house? The state of Michigan has a program for individuals trying to buy a home, go to college or start a small business that will match funds so you may better yourself.

IDAs (Individual Development Accounts) are designed to increase savings and investments for the people who are struggling to get ahead and better themselves. Just like a GI bill helps veterans to acquire a home the IDA is a tool that can help low-income citizens strive toward their dream of being home owners, entrepreneurs, or to better one’s education.

I learned about the program and registered. When I had completed the program and had saved up my thousand dollars they matched my funds 3 to 1. That gave me four thousand dollars for down payment.

After shopping around in the mortgage market I was able to find a mortgage company that would work with my finances and approve me for a home loan at ten percent down. I was able to purchase my forty thousand dollars home for an out of pocket expense of one thousand dollars.

With a little help from the IDA program I was able to break the endless cycles of paying rent and now have an investment that someday will be mine. I never again have to worry about rent going up because my payment is the same for the next thirty years. Plus the value f my home is increasing as I update it.

Now that I have made some improvements on my home I am living in a three bedroom one bath ranch worth seventy two thousand dollars for just a few thousand dollars of my money.

I had a little bit of work into getting registered into to the program and it took time to save up the money, but I could never have made this happen without the help of an IDA (Individual Development Account).