INDEX __________________________________
P.O. Box 15398 Houston, TX 77220 Fax Number: (713) 223 1853
Covenant Community Capital Corporation (Covenant), founded in 1998, is a nonprofit organization in Houston, TX, that seeks to enhance the beauty, safety, and economic vitality of communities by increasing their capacity to develop affordable housing, grow business enterprises, and build family and community assets.
IDA Team Heather Daron IDA Program Manager (713) 223-1864 ext. 11 or (503) 515-1101
[email protected] : questions about your IDA Statement Sonia Aldrett Asset Service Coordinator (713) 223-1864 ext. 13
[email protected] : questions and to find out the steps to purchase your asset Paulina Serrano IDA Enrollment Counselor (713) 223-1864 ext. 10
[email protected] : general questions
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Participant Handbook Step One: Screening & Enrollment The first step in the enrollment process is to fill out a Covenant IDA Application and turn it in to the IDA Counselor with all required documentation to Covenant. You must fill in this form stating the correct size and income of your household. The IDA Counselor will review the eligibility requirements as well as the guidelines for being successful as an IDA participant. If you are approved for participation in the program, you will be notified by the program IDA Counselor. You must also bring a minimum of $35 to open your account with Wells Fargo. You will get information for opening the account from the IDA Counselor. If you are denied, you will receive a denial letter stating that you were denied and what you need to do before you can re-apply.
Step Two: Sign Savings Plan Agreement Once you are accepted to the IDA program, you will sign the Savings Plan Agreement and Spending Plan. The IDA Counselor will review the agreement with you and answer any questions you have. If you do not follow the responsibilities outlined in the document you will be deemed ineligible for the program and your account will be closed. This agreement along with your application is used to help you plan and for attaining your savings goals.
*Step Three: Complete Financial Literacy Classes & Credit Counseling To be eligible for consideration for the Covenant IDA program match, you must complete the free, six week course of Fundamentals of Good Credit given through the Credit Coalition for financial and prepurchase education within four months of opening your IDA account. There is no fee for this class, but it is required in order to be eligible for the Covenant IDA match. The classes meet once a week for six weeks. After you complete the classes you will be eligible for a free credit report with your credit scores from all three credit bureaus. After the class you can meet with a credit counselor to go over steps for improving your credit score. Please contact the IDA Counselor for additional financial literacy classes that are accepted by the Smart Savings program.
Step Four: Open IDA Account Your savings account will be a Custodial Individual Savings Account at Wells Fargo. You will not be able to make withdrawals without signed permission and documentation from Covenant. We suggest you do not count on your IDA savings account for emergencies. Instead, we strongly suggest you to open an emergency fund account on your own. You will fill out the account application with the IDA Counselor and provide a check that will open your account. The check must be for a minimum of $35 payable to the Financial Institution holding the IDA. Your bank statements will be mailed to you quarterly by Wells Fargo Bank. Statements will also be sent by Wells Fargo Bank to Covenant bimonthly. We will enter your account information into a database to track your deposits and the amount of match money you have earned. Every other month a Participant Account Statement will be sent to you by Covenant. If for some reason you do not receive the bi-monthly-statement, contact the IDA Coordinator at
[email protected] If you do not receive a quarterly bank statement, please contact Wells Fargo Bank directly.
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Please be sure to update Covenant on any address changes you have while you are in the program, otherwise you may not receive your statements/IDA Newsletter or we will try and contact the family member or friend listed on your application.
Step Five: Make Monthly Deposits Once you have opened your savings account you should start making monthly deposits. The minimum deposit is $20. If you have a direct deposit program at work you can have a set amount deposited directly into your savings account from your paycheck. We strongly encourage you to utilize direct deposit If your total monthly deposit is over $300 you will be asked to provide proof that the deposit comes from earned income.
*Step Six: Attend IDA Activities It is a requirement to attend to at least two workshops per calendar year. We meet every second Saturday of the month at 10:30 am to 12 noon. The Workshops are held to inform participants on the IDA, loan products, and other helpful resources to help you towards your savings goal. The fairs also feature question and answer sessions to help you towards your success.
Step Seven: Withdrawals Authorized Withdrawal Once you have completed the six Fundamentals of Good Credit classes, and achieved your asset savings goal, and you are ready to purchase your asset, you can make a matched withdrawal. If you are using your IDA for a home you are required to work with of the Covenant Community Participating Lenders. You must allow at least two weeks for a withdrawal to be processed. When you are ready to purchase your asset you first need to meet with the IDA Asset Services Coordinator to complete Match Withdrawal Check Request form. FOR HOME PURCHASE: To complete the check request form you will need a letter from your lender stating the down payment and closing cost amounts (Good Faith Estimate), and the name, address of the Escrow Company. Covenant will request a HUD-1 Statement from the Escrow Company before funds will be released. FOR EDUCATION PURCHASE: You will need to provide an invoice for the items to be purchases (books or tuition) and a class schedule. The IDA Asset Service Coordinator will review your request and will determine if your request for withdrawal of matched funds is approved or denied. If your request is denied, the IDA Asset Service Coordinator will explain what you need to do to have your matched withdrawal approved. If your request is approved, the IDA Asset service Coordinator will forward your approved request to the Covenant President for final approval. Upon approval the IDA Asset Service Coordinator will process the check request. You are responsible for the withdrawal of your own funds from your IDA Savings Account with Wells Fargo Bank in the form of a cashier’s check made out to the escrow company or the approved school of your choice. If, for any reason, you do not make the planned purchase, it is your responsibility to notify Covenant, and return the match check to Covenant. If there are any leftover funds on the transaction, after the down payment and closing costs, all funds must be returned to the IDA program, there is no cash back to the IDA participant.
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Unauthorized or Authorized Emergency Withdrawals If you make a withdrawal in the first six months after opening your account, you will not receive matching funds. If you choose to make a withdrawal during the first six months or for a purpose that is not authorized, you will be terminated from the IDA program. After six months you may only make withdrawals for an authorized emergency or for your savings goal. Authorized Emergencies are: Emergency medical expenses Expenses following the loss of employment Payment necessary to prevent eviction If you need to make an emergency withdrawal you must meet with Covenant staff and complete the Emergency Withdrawal Check Request Form. You will not receive any match funds for money withdrawn for an emergency. You have 12 months to deposit the money you withdrew from your account for the emergency. If you do not deposit the money you withdrew for an emergency in 12 months, you will be terminated from the IDA program.
Termination If you are having trouble meeting the program requirements, meet with your IDA Counselor or IDA Coordinator. They can work with you through your financial challenges and refer you to appropriate community resources if needed. You may be terminated from the Smart Savings IDA program for the following reasons: Making a withdrawal in the first six months Making an unauthorized withdrawal Not making a deposit for 9 out of 12 months a year Not completing the Fundamentals of Good Credit Class Not attend a minimum of two Workshops/Peer Group meeting offer by Covenant
Exit Survey When you complete or are terminated from the IDA program, you will need to complete an exit survey. This is ideally done in the month following your completion or termination. The purpose of this interview is to assist the IDA Counselor in evaluating the IDA program to ensure that it is serving its participants in the most effective way.
Grievance Procedure The Smart Savings IDA program practices the principle of encouraging resolution of conflict directly between parties involved in conflict. Most issues can be addressed informally if they are dealt with promptly and objectively. It is the responsibility of the participant who has the grievance to bring it directly to the individual(s) with whom the participant has the grievance and request discussion and documentation of the issue. If an agreement can be made at this level concerning the grievance, the agreement is written with a timeline to follow in resolving the grievance and signed by the involved parties. If the grievance cannot be resolved directly by the parties involved, the grievance will be heard by Covenants President.
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Frequently Asked Questions How does the match work? Every dollar you deposit into your savings account, (up to $2,000 from earned income in no less than 6 months and no more than 4 years,) will be matched two dollars. So, if you deposit $2,000 during your savings period you will earn $4,000 in matching funds. This would give you $6,000 dollars total towards the purchase of your home, small business, or education. What is considered earned income? You’re Bonus from work, your payroll check, and Income tax refund. (must document the transaction) How much earned income can I deposit in my savings account? You can deposit as much money as you want into your savings account. However, only $2,000 of your earned income will be matched. (Income tax refunds, bonus from work and payroll checks from your employer) Do I have to deposit the same amount each month? No, you are not required to deposit the same amount each month, but we do required recommend that you deposit a minimum of $20 each month and do not deposit more than $300, unless the deposit can be documented. Example: provide a copy of the payroll check to prove that the money is coming from earned income,; copy of income tax refund check or the statement of your bank where the IRS deposit this refund. Why doesn’t my match money appear on my IDA account bank statement? The match money never goes directly into your savings account. It is held in a separate account. The match money that is set aside appears on the IDA statement that is mailed along with your bank statement. This statement shows how much money you have saved and how much match money is setaside for you. What happens if my income goes up or if I get married, will I be disqualified from the program? No, you will not be disqualified from the program if your total household income goes up or if you get married. You must state your full household income and size on your application; if information is left off may terminate you from the program. Do I always have to go to the “designated” bank branch to do my banking? You only need to open your account and make withdrawals at your “designated” branch. You can make deposits at any Wells Fargo branch. What if I do not use my match money by the end of my term in the program? You have until the end of your savings period (no more than 4 years) to purchase your home or use for education purpose. If you do not use the match by that time, you will lose the match money, but your own money saved with Wells Fargo will be yours. At this point your account will be closed with us, and you will decide to keep or close the IDA savings, and withdraw your personal savings. Why is my IDA Smart Savings account a Custodial Account? In order to send you the bi-monthly statements Covenant needs to be able to monitor your account Also, this type of account needs a written authorization by Covenant to withdrawal your savings. REMEMBER this savings account is with a purpose in main
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IDA REQUIREMENT: "IDA Participants must attend to at least two workshops per year" 2011 SECOND SATURDAY OF EACH MONTH WORKSHOPS CALENDAR: Place: 3300 Lyons Avenue Suite #205, Houston TX 77020 Time: 10:30 am to 12 noon Please RVSP: 713 223 1864 ext 10 OR "Breakfast will be available"
[email protected]
2011 Workshop Schedule:
Topic:
January 8/2011
Workshop
February 12/2011
Home Buyer Q & A
March12/2011
Healthy Habits
April 9/2011
Home Buyer Q & A
May 14/2011
Risk Management Habits
June 11/2011
Home Buyer Q & A
July 9/2011
Investments and Retirement
August 13/2011
Home Buyer Q & A
September 10/2011
Vocational Engagement
October 8/2011
Home Buyer Q & A
November 12/2011
Enjoyments Habits
December 10/2011
Holiday Celebration Party
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IDA Requirement: Monthly Deposits Monthly IDA Savings Deposits of at least $20 Monthly deposit/s can be made any day of the month as long as the deposit is posted for the current month
Please make your monthly deposit of at least $35 into your Savings Account as soon as you ceived your account number through the mail from Wells Fargo bank. * By mail in a form of check or money order payable to you to: Wells Fargo Port City Branch 3601 Eastex Freeway MAC T5062-011\ Houston, TX 77026
*By direct deposit: Make a payment to your IDA Smart Savings Account by providing to your bank or work the following numbers: Routing number: 1 1 1 9 0 0 6 5 9 Your IDA Smart Savings Account number: (The financial institution will mail it to You) *This is the easiest way to make consistent monthly deposit required by Covenant IDA Program Your account number will be mail to you by Wells Fargo Bank between 2 to 3 weeks from the date sign your Account Application STATEMENTS
Wells Fargo Bank: will mail your IDA account statement every 4 moths. Covenant IDA: will mail the IDA Savings statement every 2 months, and it will show the amount deposited at Wells Fargo and the IDA matching earned by you with the Smart Savings IDA Account
(Savings Account) Name_____________________ Wells Fargo Bank Port City Branch 3601 Eastex Freeway Houston, TX 77026 The bank routing number your account number 111900659: 0000000000 Example only
In Person: by walking into any Wells Fargo Bank branch. Services locations? Call 1-800-869-3557 or at: https://www.wellsfargo.com/locator/
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Steps to have your (2:1) match on time to PURCHASE your HOME: Keep your Smart Savings IDA Account active by making consistent monthly deposits of at least $20 Complete free 5 financial education classes & free home buyer class and at least two free workshops To start the process, contact Sonia Aldrett Covenant Asset Services Coordinator at (713) 223-1864 x 13 and provided the following with at least 2 weeks before your closing date: Loan Officer Information Closing Date A day or two before your closing date, you will be ask to visit your bank and withdraw the amount you have been authorized. Your savings have to be withdrawn in a form of a cashier’s check payable to the Title Company. You must bring or fax to Covenant a copy of the cashier’s check (fax # 713 223 1853). Upon receiving copy of cashier’s check, Covenant will send to the Title Company the check for the amount of matching you have earned to cover the closing cost or as a downpayment assistance. Your Title Company will fax us The HUD 1 prior the closing and at this time Covenant will release a check with your match funds. www.covenantcapital.org Covenant’s phone number: 713 223 1864 ext 13 Fax number: 713 223 1853
COVENANT’S IDA PARTICIPANTS LENDER LIST
NOTE:
You IDA Savings can be used to pay for: earnest money, loan application, appraisal fee, inspection (must submit invoice). Transactions have to be authorized by Sonia Aldrett, Asset service Coordinator 7
Participating Lender List Bank
Loan Officer
Location
Phone Number
E-mail
Amegy Bank
Shirley Penn
4400 Post Oak Parkway Houston, Texas 77027
Office – 713-232-2076 Cell – 281-773-1653
[email protected]
Bank of America
Sally Redmon
18445 Highway 105 W., Suite 103 Montgomery, TX 77356
Office – 936-828-7499
[email protected]
Bank of America
*Veronica Martinez
4909 Bissonnet, Suite 200 Bellaire, TX 77401
Cell - 713 263-4165
[email protected]
Capital One Home Loans
*Rosalinda Garcia
5718 Westheimer Road, 10th Floor Houston, TX 77057
Office - 713-435-5318 Cell - 713-702-1231
[email protected]
Chase Bank
*Elias Hernandez 545 W. 19th Street Houston, TX 77008
Office – 281-591-5974
[email protected]
Northern Trust Bank
Stella Jones
Office – 713-336-6194
[email protected]
Wells Fargo Home Mortgage
Ana Alvarez
14090 Southwest Frwy Sugar Land, TX 77478
Office – 281-275-4016
[email protected]
Wells Fargo Home Mortgage
*Leticia L. Mijes
14090 Southwest Freeway, Suite 103 Sugar Land, TX 77478
Office – 281-275-4017 Cell – 713-320-5171
[email protected]
ViewPoint Bankers Mortgage *se habla espaňol
*Zoey Mejia
745 Gulfgate Center Mall Houston, TX 77087
Office – 713-454-6532 Cell – 713-269-3867
[email protected]
600 Bering Dr Houston, TX 77057
(Revised on 3/15/2011)
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“Some of the Options for Home Down-Payment Assistance Available in our Community” “FIRST COME FIRST SERVE BASIS” “Harris County – DAP” DAP provides financial assistance in the form of a deferred forgivable loan to eligible first time homebuyers for down payment and closing cost assistance on the purchase of a new or pre-owned homes (built not older than 10 years ago). DAP assistance up to $14,200 is available for some homebuyers for the purchase of homes located in the unincorporated areas of Harris County, outside the cities of Houston and Pasadena, and within 15 cooperating cities in Harris County. For more information cal: 713.578.2210 or TTY 713-578-2096 www.hrc.hctx.net
Applicant(s) combined annual household income must be at or below the amounts listed in the Household Income Limits at the time of purchasing your home. 2009 Household Income Limits
80% of the Family Area Median Size Income 1 $35,750 2 $40,850 3 $45,950 4 $51,050 5 $55,150 6 $59,200 7 $63,300 8 $67,400
“City of Houston Funds” The city of Houston has two down payment assistance programs available to qualifying families: *HAP provide up-to $19,500 Property must be located . within the city of Houston limits *GNND provide up-to $37,000+ For up-date information: 713-522-4663 www.houstonhousing.org “subject to change”
Federal Home Loan Bank of San Francisco – extra 3:1 up to $15,000 in matching assistance opportunity To have the opportunity to be chosen to received an extra 3:1 in matching from the FHLB of SF you must: Save consistently in your IDA Savings Account (up-to $5,000 of your earned income) and must be in the IDA program for at least 10 months Complete the Credit Coalition Classes within the first 4 months after you open your IDA account program Attend to Covenant IDA Peer Group Meetings Be approved for a loan with Wells Fargo Bank Must live in your home for at least 5 years for the loan to be forgettable Must meet FHLB of SF Income Guidelines at the time you applied for a loan with Wachovia If you are selected. Example: Earned Income saved in your IDA up-to………………………….. $5,000 Federal Home Loan Bank of San F. /Wachovia matching $15,000 Total : $20,000 IDA match earned by you with the IDA program:…………….. $4,000 INCOME LIMITS FROM THIS PROGRAMS ARE SUBJECT TO CHANGE/FUNDING IS ON “FIRST COME FIRST SERVE BASIS”
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List of the Most Common Documents Requested by a Lender to apply for a Mortgage Loan
Valid State Driver's License or Identification Card(s)
Social Security Card(s)
Permanent or Temporary Resident Alien Card(s) (as applicable)
Three (3) months of paycheck stubs
Three (3) months of all bank statements
Two (2) years of complete income tax returns including all schedules, W-2's or 1099's
Any award letters to verify other sources of income such as child support, social security, social security supplemental income (SSI), pensions, annuities, etc.
Birth certificates or legal documentation of adoption or guardianship for all household members seventeen (17) years of age and under
If applicable, additional documents/statements from the applicant(s) related to marital status, i.e., divorce decree, legal separation documents, and/or death certificate
Homebuyer Education Certificate
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Steps to cover your Education bill on time: Note: IDA for Education pays only tuition bill/s or books Keep your Smart Savings IDA Account active by making consistent monthly deposits. Complete 5 financial education classes with the Credit Coalition (page 6) Education Action Plan form must be completed and signed by your Academic Advisor. (page 15) Please call, Sonia Aldrett, Asset Services Coordinator (ext 13) as soon as you have the following information: *the class schedule *tuition cost *date classes begin and *the total amount needed to cover your tuition or books. After your tuition/book bill is approved by the Asset Services Coordinator. You will need to visit your bank and withdraw the amount you have been authorized to withdraw from your Smart Savings IDA account. Please withdraw your savings in a form of a cashier’s check payable to the College, University, or Technical school of your choice. As soon as we receive a copy of the cashier’s check Covenant will be ready to send the check to cover the rest of your tuition or book expenses. At this point you can pick up the cashier check from Covenant in person or we will mail it to you. To complete this transaction you will need to turn in the receipts of payment to Covenant to proof the tuition or books were pay and accepted by the school of your choice.
Covenant’s phone number: 713. 223.1864 x13 - Fax number: 713 .223. 1853 11
EDUCATION ACTION PLAN All information requested on this education action plan will be kept confidential by Covenant. This form must be completed for each term Covenant IDA match dollars are requested.
PERSONAL INFORMATION NAME: ______________________________ ATREET ADDRESS: ________________________________ ___________________________________ City:_________________________________ STATE: ______________ ZIP-CODE:___________________ EDUCATIONAL INSTITUTION INFORMATION NAME: ______________________________ ATREET ADDRESS: ________________________________ City:_________________________________ STATE: ______________ ZIP-CODE:___________________ DEGREE/PROGRAM INFORMATION COLLEGE DIVISION/DEPARTMENT: _____________________________________________________ DEGREE: __________________________ MAYOR:___________________________________________ CURRENT TERM: ___________________ TERMS: ___________________________________________ ACADEMIC ADVISOR: ______________________ ANTICIPATED GRADUATION: _______________ (semester, trimester, etc.) ACADEMIC GOALS: ____________________________________________________________________
HOW DO YOU PLAN ON PAYING FOR YOUR REMAINING EXPENSES?: (check all that applied)
__________STUDENT LOANS
___________SAVINGS __________PERSONAL INCOME
_________SCHOLARSHIOP/GRANTS
___________FAMILY
_________OTHER: (specify)
SIGNATURES
STUDENT SIGNNATURE
ACADEMIC ADVISOR SIGNATURE
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Please read carefully: Assets for Independence Act
Under federal law, any assets that accumulate in an IDA funded under the Assets for Independence Act must not be considered when determining eligibility or benefit levels for any federal benefit program that considers an applicant’s financial circumstances. This mandatory disregard applies to the individual’s contributions, matching contributions, and interest accruing on the account. The relevant provision in federal law states: “Sec. 415. No Reduction in Benefits. Notwithstanding any other provision of federal law (other than the Internal Revenue Code of 1986) that requires consideration of 1 or more financial circumstances of an individual, for the purpose of determining eligibility to receive, or the amount of, any assistance or benefit authorized by such law to be provided to or for the benefit of such individual, funds (including interest accruing) in an individual development account under this Act shall be disregarded for such purpose with respect to any period during which such individual maintains or makes contributions into such an account.@ (See Section 415 of the Assets for Independence Act, codified at 42 U.S.C. 604 note.) The full text of the Assets for Independence Act is available on the web site of the U.S. Department of Health and Human Services. If you need a letter to submit to your Social Worker please call Covenant at 713 223 1864 ext 10
Thank you,
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