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Tribal Elder Uses IDA and Other Programs to Purchase First Home By Yvonne Messmer What do you get when you combine determination, setting aside a little money each month, working with community or ganizations, paying down your debts and getting the keys to your first home? You get Siletz Tribal Elder Robert Gallagher and his new home! Two years ago, if you had asked Bob if he would believe he could own his own home and be a successful saver, his answer would have been no. But today is a different story, his answer is most cer tainly yes and to top it off, 1 did it! What is an IDA account and how did Bob find out about it? Siletz now offers an IDA Program called Siletz Saves! The exclamation point emphasizes the importance of how excited a participant has to be about bud geting and saving money. The program teaches people healthy spending habits and skills on how to save and build wealth. It matches participants’ monthly savings deposits with three dollars for every dollar they deposit and then allows them to use their savings and the matching money for down payment and/or closing costs on their first home. It's all about considering future con sequences. Those who believe in delaying immediate gratification in order to have a more comfortable future are going to be very successful. Bob started working on improving his life when he learned about an IDA pro gram at the Lower Columbia CAP Agency through the Longview Housing Authority, where he was receiving a housing voucher to help pay his rent. Bob has a cheerful positive attitude and he is an avid fisherman. He really en joyed traveling all over and being outdoors and he enjoyed spending money on it. When he enrolled in his IDA, he knew he could save, he knew he could change his spending habits and he knew he wanted to buy his first home. Those are very key ingredients. After taking the required financial education classes, he set up a stringent budget and saved, saved,saved! In a recent interview, Bob answered a few questions about the IDA Program and his homebuying experience. Rena Mattison from the Longview Housing Authority was there too. She was a ma jor driver who helped Bob find his way through all the programs that lead to his homeownership. Here is what Bob had to say about his experience: How long did you save for in your IDA and how long did the whole process take you to go through? I saved for about one year in all. 1 saved before I actually started my IDA and then continued to save in the program. Today 1 still save a little extra and it makes me feel so much better knowing I have a cushion. The program I was in required that I save at least for six months but no more than three years. Saving for a year worked best for my situation. 10 * Siletz News * may vary, the Siletz Saves! IDA Program matches $3 to $1.) What other sources of funding were you able to use in order to purchase your first home and how did you find out about them? Courtesy photos by Yvonne Messmer Bob Gallagher and Rena Mattison from the Longview Housing Authority in Bob's new kitchen (above) and at his front door (below). Because my income is low, 1 was able to get a USDA Direct Loan to use as my primary loan with a really low rate and an extended payback period. I have to do annual income verifications with this pro gram and my mortgage payment amount is dependant on my income. Down Payment Assistance from the Section 8 Program - This $25.000 loan is 0 percent interest and I have to pay it back when 1 sell the house or transfer title. Down Payment Assistance from Si letz -This $15,000 loan is forgivable after 1 live in the home for five years. IDA Program - This program helped me pay $3,600 toward my down payment. Section 8 Mortgage Voucher - 1 am using my rental voucher to pay part of my monthly mortgage payment with this program. I also have to do annual income verifications. If my income goes up, the subsidy amount could decrease. After you finished saving in your IDA account, what could you use those funds for? The funds could be used to pay for closing costs associated with the purchase of the home and also down payment money. They didn't give it directly to me, they just cut a check to my escrow account at the title company after I sent them my request and a closing statement. That part was really simple. Who do you think could benefit from this sort of program? What was your motivating fac tor when you decided to enroll in the IDA Program? To buy a house! I wanted that more than anything. 1 was living in a small apartment. 1 was very eager to save if 1 knew it would help get me to homeowner ship. 1 also had to establish good credit. Saving and getting my credit in order took me about a year. What did you find challenging about the journey? At first I wasn’t sure how 1 was going to save all that money. Then when they explained that I had to save some each month, 1 had to make a decision on what 1 could cut out of my spending in order to save. I cut out some of my outdoor trips and some other things. That was the hard est part. Now budgeting and saving seem natural to me. I don't think it would feel right if I wasn't saving. Did you find it challenging to stay motivated throughout the program? No, not at all. I knew 1 wanted a house and that was motivation enough for me. They just had to point me in the right direction and I went from there. Other than being able to pur chase your home, what other ben May 2010 efits did you take away from going through the IDA Program? Owning my own place is definitely the biggest benefit, but other than that 1 am proud of my accomplishments. I have better credit now. 1 have emergency funds if something happens. I have security like I have never had before. I have an asset I can pass along to my family and I consider myself to be a great budgeter! Oh, and of course I made new friends along the way. Did you find that once you were enrolled in the IDA Program, the people you worked with were help ful both in the education portion and the homebuying experience? Yes, it was hard to understand all the paperwork and requirements. 1 used a total of five different programs and all the staff were very helpful. I was grateful to be able to work with such knowledgeable people but 1 knew it was also my responsibility to keep my paperwork organized and to stay motivated to save. How much did you save in your IDA account? I saved a total of $1,200 in my IDA account and the Lower Columbia CAP Agency matched my deposit $2 for every $ 1 so that gave me a total of $3,600.1 used that for down payment. (IDA Programs Everyone who is eligible. I think just about everyone could use help budgeting, cleaning up credit and saving. This is a great program. What are three things you really like about being a homeowner? I like being able to know the house is mine and I can do anything I want and decorate any way I like. The first thing I moved into my new home was my fishing poles! I have such a sense of accomplish ment, I am a very proud homeowner. I enjoy having my family and friends come visit me and I really like being able to have an extra room for them to stay in. Siletz currently has several partici pants saving for their first home. If you think you are interested in the Siletz Saves! IDA Program, call me at 888-870-9051. Logan Family 1 Reunion ! Siletz Tribal Community Center J July 24, 2010 • 11 a.m. - 6 p.m. ! Contact Melinda Logan at 541-994-0536 or logan.melinda@yahoo.com with questions or concerns.
