Who Says Low-Income People Can’t Buy a Home?
Who says low-income people can’t buy a home? I must say, I did have my doubts 4 years ago when I was approached to run the Individual Development Account (IDA) program at Community Teamwork Inc. The premise of the IDA program is to move low-income people from rental subsidies to purchasing an asset such as a home, secondary education or small business. The program promises to match each client’s savings on a 3/1 basis ($2000.00 max). It is true that the purchase of an asset leads to self-sufficiency which is CTI’s main goal.
Now it sounds like a huge feat, a poor person buying a home. Maybe you are having a mental picture of moving a mountain? But let me tell you that mountains have been moved! There have been a total of 46 members of CTI’s IDA program and in November 2011, 6…SIX members of our IDA program have bought a home which makes asset purchase total 18… eighteen! Eighteen people have purchased a home or returned to school. Eighteen low-income people, who never thought they could, are reaching self-sufficiency, managing their money and surpassing any negative labels that exist about low-income people.
How did they do it? Well, they first attended our Financial Literacy Academy program which provides them with financial education roots…basic money management techniques. They receive credit repair, debt management counseling and case management through the Family Resource Network which is the department I manage. They must promise to save $2000.00 over a 5 year period, come to a monthly support group meeting and keep their credit score high and their debt lower than 25% of their net income. They work hard and garner support from each other- a major ingredient to their success. Although they do the work, almost all who purchase their asset feel that the IDA program is the catalyst to that purchase.
I met Jennifer and Luis at the bank last month to close out their account. Their closing was the next day and they were both so excited about it. Jennifer told me that she and Luis would never have been able to buy a home without the IDA program. It not only assisted them with match money for the down payment but most importantly it helped them learn how to manage their finances and control spending.
Two of the purchases in November were made by single mothers. Both are extremely thankful for the match funding because not only has it helped in buying their homes, it also means that they will no longer need rental assistance. Both women told me that they feel proud to be on their own and no longer relying on subsidies to help them.
This program has changed lives and the trickle down effect will be astounding. These families are breaking cycles and are providing more than a house for their children. They are showing their children that dreams can come true and hard work pays off. During a tough economic climate, these low-income families are buying homes, investing in their futures and helping to better their community and the economy. I am proud to be part of this program and even more proud of the members of it who have defied any stereotype about low-income people.
